5. Questions and Problems 8 You read in a business magazine that computer firms are reaping high profits. With the theory of perfect competition in mind, what do you expe happen over time? Complete the following sentences to describe the long-run adjustment. The number of computer firms in the market will increase The number of computers in the market will decrease Computer prices will The profits of computer firms will

5. Questions and Problems 8 You read in a business magazine that computer firms are reaping high profits. With the theory of perfect competition in mind, what do you expe happen over time? Complete the following sentences to describe the long-run adjustment. The number of computer firms in the market will increase The number of computers in the market will decrease Computer prices will The profits of computer firms will

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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11. Profit maximization using total cost and total revenue curves Suppose Hubert runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Hubert'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 Hubert produces. 200 175 Total Revenue 150 125 Total Cost Profit 100 75 50 25 -25 3 QUANTITY (Teddy bears) 1 2 5 7 8 TOTAL COST AND REVENUE (Dollars)
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The following graph shows the demand curve, as well as the AVC, ATC and MC curves of a company selling rolled oats in a perfectly competitive market. Use the graph to answer the questions. The goal of the company is to maximize its profit. How many boxes of rolled oats should it sell to attain this goal? What price will it charge? How much profit does this firm make per month? Will this company produce or shut down in the short run? Why? Will this firm exit the market for rolled oats in the long run or not? Why?
coit ad Fifai oriens diss ܠܫܐ -D. Prufe maximirudcn uni hharat-ade mariet prioris ܗ ܕ Sapietne Sarei nuts a imal haats that manum: a Are a e $$ gar Hat The following graph shows Dames total cost curve Use the blue points (circle symbel) to plot total revenue and the green points (triangle symbol) to plat profft for shirts quanties zero through sever (inclusive) that Darnell produces A< ¥UAnd 10 Tripl ܡܢܐ ܕ ܚ ܠܚܝܬ Total Co ܀ ܀
Suppose Jake runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Jake's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for frying pans quantities zero through seven (inclusive) that Jake produces. 200 175 Total Revenue 150 Total Cost 125 Profit 100 75 50 25 -25 1 2 6 8 QUANTITY (Frying pans) Calculate Jake's marginal revenue and marginal cost for the first seven frying pans he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. (? 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 1 2 3 4 5 6. QUANTITY (Frying pans) Jake's profit is maximized when he produces frying pans. When he does this, the marginal cost of the last frying pan he…
Suppose Kevin runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Kevin'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 Kevin produces. Calculate Kevin's marginal revenue and marginal cost for the first seven teddy bears he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. Kevin'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 (greater/less) than the price Kevin receives for each teddy bear he sells. The marginal cost of producing an additional teddy bear (that is,…
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The graph illustrates the demand for Blue Sky surf boards and the firm's marginal revenue. On the graph, draw the marginal cost curve if the firm produces 150 surf boards a week. Label it. Draw a point at the intersection of the MC and MR curves. Draw a point to show the price of a Blue Sky surf board when the firm produces 150 surf boards a week. Draw an arrow to show the firm's markup. Label it. >>> Draw only the objects specified in the question. 750- 675- 600- 525- 450- 375- 300- 225- 150- Ģ 75- 0- 0 Price and cost (dollars per surf board) 50 100 150 Quantity (surf boards per week) Select Point 3-point Curve Double Arrow D MR 200 250
Please graph what the market looks like with a short decrease in demand and what one firm looks like with a short run decrease in demand. Please make sure to graph your answer with all necessary labeling.
Suppose Megan 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 Megan'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 teddy bears that Megan produces, including zero teddy bears. 200 T 175 150 125 100 75 50 0 -25 35 30 20 15 10 5 0 0 D 0 1 2 1 C 2 D ☐ 3 4 5 QUANTITY (Teddy bears) Calculate Megan's marginal revenue and marginal cost for the first seven teddy bears she produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. (?) 0 3 4 5 QUANTITY (Teddy bears) 6 Total Cost 0 6 7 8 7 O 8 Total Revenue A Profit O (?) Marginal Revenue Marginal Cost Megan's profit is maximized when she produces teddy bears. When she does this, the marginal cost…