8. Firm's RevenueA firm in a competitive market receives $1,080 in total revenue and has marginal revenue of $20.The firm's average revenue is Sunits were sold.

The firm's average revenue is $20, and 54 units were sold. Explanation:To find the average revenue,…

Answered: 8. Firm's Revenue A firm in a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1)A perfectly competitive firm produces 1000 units of burger in the long run. Themarginal revenue is RM6. Calculate this firm's marginal cost, average fixed cost, longrun average cost, total cost, total revenue, and total profit.
24. The figure to the right illustrates the cost curves of a perfectly competitive firm. If the market price is P1 Price and cost (dollars per pound) ATC AVC 0 D-MR 0₁ 02 03 A. The firm will experience a loss since price is less than ATC. B. The firm will break even by producing a quantity of Q2. C. The firm may make a profit if it can increase the demand for its product. D. The firm will experience a loss and raise its price to P2. The firm will then break even. Quantity (thousands of pounds) 1
Jhong's firm will find it difficult to make an excess profit in its perfectly competitive industry because A. His firm faces a perfectly elastic demand curve B. His firm and all other firms in the industry are price takers C. His firm and all other firms in the industry sell identical products D. Firms can enter and leave this industry easily
3
3. The components of marginal revenue Alex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $80,000 to $40,000 per fire engine. Note that while Alex gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. dollars per fire engine) PRICE (Thousands Alex 200 180 160 140 120 100 80 60 40 20 0 0 + 1 True + False 2 + 4…
Please solve it very quickly
3. The components of marginal revenue Bob's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Bob produced five fire engines, but he has decided to increase production to six fire engines. The following graph shows the demand curve Bob faces. As you can see, to sell the additional engine, Bob must lower his price from $160,000 to $120,000 per fire engine. Note that while Bob gains revenue from the additional engine he sells, he also loses revenue from the initial five engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000. PRICE (Thousands of dollars per fire engine) 200 180 160 140 120 100 80 60 40 20 0 + 0 1 2 Bob in this scenario.…
2. In the graph below, name the curves A, B, C and D Quantity (units per day) 3. In the graph above, indicate the following a. Price at which a firm makes a positive profit b. Price at which the firm makes zero economic profit c. The exact shutdown point d. The price at which the firm must exit (leave the market) e. The price at which the firm makes a loss but stays in the market Costs per unit (dollars per unit)
Is the firm making an economic profit or loss? Will firms enter or exit this market? 3. Sketch on the graph and explain what happens to bring this market to long run equilibrium.
1. The following table has information on the revenues and costs for Tom's tennis ball manufacturing which operates in a perfecetly competitive market. a) Complete the table that corresponds to Tom's production when price is $3. What is MR? b) What is Tom's profit maximization output? What is the shutdown price, entry and exit price? c) What is the economic profit or loss? No of baseballs Total Variable Costs Total Fixed Total Cost $ Cost $ 1.00 2.00 4,00 2. 7.00 4. 11.00 16.00
Please solve the question on the word
29. In the long run, a profit maximizing firm will choose to exit a market when a. fixei costs exceed total costs O totai revenue from production is less than total costs c average fixed cost is rising d. marginal cost exceeds marginal revenue at the current level of production

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8. Firm's Revenue A firm in a competitive market receives $1,080 in total revenue and has marginal revenue of $20. The firm's average revenue is S units were sold.