7 What is the total variable cost?8 Identify the firm's short-run supply curve.9 Is the industry in a long-run equilibrium? Figure 12-18RevenueMCand cost(dollarsper unit)d$40MRATCAVC24C2014128a55100 150200Quantity.......

In the perfectly competitive market structure, there exists a large number of buyers and sellers of…

Answered: 7 What is the total variable cost? 8…

7 What is the total variable cost? 8 Identify the firm's short-run supply curve. 9 Is the industry in a long-run equilibrium?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7. The long-run supply curve indifferent cost industries The following graph shows the market for orange juice. Initially, the market is in a long-run equilibrium. Suppose that a change in tastes resulted in a rightward shift in demand. On the following graph, shift the demand or supply curve to reflect this change in tastes. Then use the grey point (star symbol) to indicate the new short-run equilibrium. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per quart) 0 2 4 In the short run, firms will 6 Short-run Supply Demand 8 QUANTITY (Thousands of quarts) 10 Demand Short-run Supply Short-un Equilibrium Long-run Equilibrium Long-run Supply . In the long run, the supply curve will On the previous graph, show the shift in the supply curve and then use the purple point (diamond symbol) to indicate the resulting new…
4. At the current price of $63, firms in this (perfectly competitive) market are each producing 8.4 million widgets each year. (The quantities on the horizontal axis are measured in millions.) What will be the price and the typical firm's level of output in the long run? PIsoprofit curves 90 80 70 60 50 40 30 20 10 1 2 3 4 5 6 7 8 9 Q P AC
1. Which of the following statements are correct? (i) When average variable cost is rising, marginal cost must be greater than average variable cost. (ii) When marginal cost is rising, average total cost must be rising. (iii) When marginal cost is rising, average fixed cost could be rising or falling. (iv) A competitive firm will produce at the minimum effect scale in the long-run equilibrium. (A) (i), (ii) (B) (i), (iii) (C) (i),(iv) (D) (i), (iii), (iv)
9. Consider a perfectly competitive industry in which there are 100 identical producers. Each firm fias a sunk fixed cost of 5 and a total variable cost of 10Q2. Market demand is Qd = 8000 – 3P. (a) Compute the shoutdown price and characterize the short-run supply curve of the individual firm. (d) Determine the quantity supplied and the profits attained by each firm in the short-run equilibrium.
Refer to Figure 12-10. If the price is less than $6, the firm should short run and in the long run. OA. shut down; exit the market OB. continue operating, stay in the market and expand OC. continue operating; exit the market OD. exit the market; exit the market in the Revenue and cost (dollars per unit) $20 11 10 6 0 J 200 250 300 ATC AVC MR Quantity
24.Use the graph to answer the question Where on the graph would firms be experiencing diseconomies of scale? A-Between A and B. B-Point B. C-Between B and C. D-Between C and D E-Beyond D 25.A firm has a total revenue of $90,000. Its total explicit costs are $50,000, and its total implicit costs are $40,000. What economic profit is the firm earning? A-$50,000. B-$40,000. C-$10,000. D-Indeterminate. E-Normal
QUESTION 5 Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation A. should close down in the short run B. is maximizing its profits C. is realizing a loss of $60 D. is realizing an economic profit of $40
I need help with econ multiple hw questions asap! 58) Refer to the attached Figure 17. When price rises from P2 to P3, what does the firm find? A. Marginal cost exceeds marginal revenue at a production level of Q2. B. Expanding output to Q3 would leave the firm with losses. C. If it produces at output level Q3 it will earn a zero profit. D. If it produces at output level Q3 it will earn a positive profit. 57) What will happen when new firms enter a perfectly competitive market? A. Profits of existing firms will fall. B. Existing firms will see their costs rise. C. Consumers will likely observe increasing prices. D. Entering firms will earn zero profit as soon as they enter.
11. Consider a competitive market where firms have U-shaped cost curves. Which of the following is true? a. The long run market supply curve for a constant cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. b. The long run market supply curve for an increasing cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. c. The long run market supply curve for a decreasing cost industry is upward sloping, and, the short run supply curve of each firm is upward sloping. d. The long run market supply curve for an increasing cost industry is downward sloping, and, the short run supply curve of each firm is horizontal. e. None of the above.
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11. The graph below shows the marginal revenue, marginal cost, and average total cost at different quantities for a firm in a perfectly competitive market. If this firm chooses to produce no output in the short run, what must the market price be? A-Below $20 $21-$30 $31-$40 $41-$50 Above $50 7. firm's implicit costs are $10,000, explicit costs are $5,000, and its total revenue is $10,000. This firm is earning A-normal accounting profit B-positive accounting profit of $5,000 C-positive economic profit of $5,000 D-normal economic profit E-negative accounting profit of $5,000
10 The industry in the figure given below on the left consists of many firms with identical cost structures, and the industry experiences constant returns to scale. a. Draw the short-run market supply curve up to 4,000 units of output. Instructions: Use the tool provided (SRMSC) to draw the short-run market supply curve. Plot three points total. b. Draw the long-run market supply curve from zero to 4,000 units of output. Instructions: Use the tool provided (LRMSC) tool to draw the long-run market supply curve. Plot only the endpoints across the entire output range (0 to 4,000). Price ($) 50 40 40 Typical Firm Market Price ($) 50 MC ATC 40 30 AVC 20 20 10 0 10 20 20 30 Quantity 40 40 50 50 30 20 20 10 0 D Tools / LRMSC SRMSC 1000 2000 3000 4000 5000 Quantity