5 Using the above graph, The minimum level of output this firm would produce is Blank 1 units. The firm's total fixed costs is $Blank 2. (Do NOT enter the '$' in your response; enter only the whole dollar amount, NOT cents.) 12 14 16 The profit maximizing output level for this firm is Blank 3 units. The economic profit that this firm is earning is $Blank 4. (Do NOT enter the '$' in your response; enter only the whole dollar amount, NOT cents.) Blank 1 If this profit level is typical of the industry that the firm is operating in, what do you expect to happen? Blank 5 Blank 2 Blank 3 Blank 4 Blank 5 Add your answer mr Add your answer Add your answer Add your answer Add your answer

5 Using the above graph, The minimum level of output this firm would produce is Blank 1 units. The firm's total fixed costs is $Blank 2. (Do NOT enter the '$' in your response; enter only the whole dollar amount, NOT cents.) 12 14 16 The profit maximizing output level for this firm is Blank 3 units. The economic profit that this firm is earning is $Blank 4. (Do NOT enter the '$' in your response; enter only the whole dollar amount, NOT cents.) Blank 1 If this profit level is typical of the industry that the firm is operating in, what do you expect to happen? Blank 5 Blank 2 Blank 3 Blank 4 Blank 5 Add your answer mr Add your answer Add your answer Add your answer Add your answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(Figure: Joshua's Lawn Mowing Business) Use Figure: Joshua's Lawn Mowing Business. If Joshua's lawn mowing firm's units of output, and its economic profit will be MR curve is MR2, then the firm's optimal output is Price, MR, MC, ATC, AVC Q₁ Q₁; positive Q2; negative Q3; positive Q4; negative √ Q₂ Q3 MC ATC MR₁ AVC MR₂ Q4 Lawns mowed
3. Profit maximization using total cost and total revenue curves Suppose Raphael runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Raphael's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Raphael produces, including zero shirts. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 25 0 -25 0 1 2 ♫ 3 4 5 QUANTITY (Shirts) 6 Total Cost ☐ 7 8 Total Revenue Profit ?
7. Short-run and long-run effects of a shift in demand Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 350 million pounds per year. Suppose the Surgeon General issues a report saying that eating chicken is good for your health. The Surgeon General's report will cause consumers to demand chicken at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the Surgeon General's report. 10 9 Supply Demand 8 7 Supply 3 Demand 2 1 70 140 210 280 350 420 490 560 630 700 QUANTITY (Millions of pounds) In the long run, some firms will respond by until PRICE (Dollars per pound) CO
3. Profit maximization using total cost and total revenue curves Suppose Yakov runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $25 per teddy bear. The following graph shows Yakov's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Yakov produces. Yakov's profit is maximized when he produces teddy bears. When he does this, the marginal cost of the last teddy bear he produces is , which is ___ than the price Yakov receives for each teddy bear he sells. The marginal cost of producing an additional teddy bear (that is, one more teddy bear than would maximize his profit) is , which is than the price Yakov receives for each teddy bear he sells. Therefore, Yakov's profit-maximizing quantity corresponds to the intersection of the…
1. The manufacturers of printers are operating in a perfectly competitive market. Each printer sold for $150. Suppose that the cost to produce each of printers initially shows a short span of decreasing marginal costs, followed by an increase in the marginal costs. a. Draw a possible total cost curve for producing printers. For a given quantity (Q) (placed at any location you choose on the horizontal axis), show the corresponding profit. b. Draw the possible marginal cost curve for printer production. Indicate the maximum output level of profit.
7. Working with Numbers and Graphs Q8 The following graph illustrates the demand and marginal revenue curve (D-MR) of a perfectly competitive firm. Suppose that when the firm produces 70 units, its average variable cost equals $30 per unit and its average total cost equals $55 per unit. Use the green rectangle (triangle symbols) to plot the total cost of producing 70 units. Next, use the grey rectangle (star symbols) to plot the total variable cost of producing 70 units. Then, use the tan rectangle (dash symbols) to plot the total revenue at 70 units. Finally, use the purple rectangle (diamond symbols) to plot the profit or loss at 70 units. PRICE AND COST (Dollars) 100 90 80 70 60 50 40 30 20 10 0 0 10 30 40 50 60 QUANTITY (Units) + ATC +AVC 70 80 D=MR 90 100 Total Cost Total Variable Cost Total Revenue Profit or Loss ? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for…
11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50 + q? Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand Qp = 120 – P where P is the price and Q is the total quantity of the good. Each firm's fixed cost is $ What is each firm's variable cost? 50 + 9
11 Price and costs (dollars) (a) more; less; (b) less; more; (c) (d) less; less. 2 more; more; 0 MC ATC Q₁ Q2 Q3 FIGURE 4 Figure 4 describes a perfectly competitive firm which faces a price of P₁. Its marginal cost curve is given by MC and its average cost curve is ATC. If the perfectly competitive firm produced Q3, the firm's economic profit would be than if it produced Q₁ and than if it produced Q₂. Quantity (per day)
2. Sketch the MC and ATC curves. Put quantity of output on the horizontal axis and measure costs on the vertical axis. Quantity (Q) Price Total Total Profit Marginal Revenue Marginal Cost (TC) Cost (MC) (P) Revenue (TR) (MR) 6. 25 126 7 25 141 8 25 160 25 183 10 25 210 11 25 245 12 25 300 3. Complete the table above. 4. What is the profit-maximizing level of output? 5. What is the amount of profit at the profit maximizing output level?
(Figure 10-3)What is the maximum economic profit this firm depicted in Figure 10-3 will be able to earn? Group of answer choices $600 $200 $400 $0
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Based on the table, what is total revenue for John's Tricycle Company if it produces at its profit- maximizing output? Output Marginal Total Cost Revenue 7,500 5. 1,300 1,400 1,500 1,600 0006 10,500 7. 8. 000 13,500 O 10,500