Q: A firm has the long-run cost function C(q)-4q² + 256. In the long run, it will supply a positive…
A: In long run, the competitive firm makes normal profit i.e. zero economic profit. Economic profit…
Q: You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One…
A: Perfectly competitive market refers to a market scenario in which there are large number of buyers…
Q: Read the Chicago Tribune article titled “At Amazon’s Monee Warehouse, Robot Co-Workers are the New…
A: NOTE: Since you have asked multiple questions, answers to the first question will be provided as per…
Q: Complete the following table: Assuming the price of capital (k) is $4 and the price of labor (L) is…
A: Price of capital(K)= $4 Price of labor(L)= $6 Total cost(TC)= Price of capital * K + Price of labor…
Q: c. If all prices (input and output) double, then costs will increase by more than dout d. If a firm…
A: Return to scale, in financial matters, the quantitative change in result of a firm or industry…
Q: Figure 13-9 The figure below depicts average total cost functions for a firm that produces…
A: The entire cost of manufacturing divided by the total number of units produced yields the average…
Q: MC=Px MP 1. Suppose that the price of the input x is 83. Total fixed costs are $200. Fill in the…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: e. If their budget is $300 then there is a constraint L+ K = 300. Use Lagrange multipliers (2) to…
A: Production Function P = 60L23 K13 P = Number of Anvil ProductionL =Amount spent on LabourK =…
Q: Suppose a firm has two plants, A and B, each producing the same product but using different…
A: As per economics, the marginal product of capital or MPK is the additional production that a firm…
Q: B. when economic profits are zero
A:
Q: In the short run: A) firms have the ability to enter or exit the industry. O B) firms are able to…
A: The objective of the question is to understand the characteristics of firms in the short run in the…
Q: Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Loblaws Supermarket is…
A: Value added by loblaws supermarket is 1.50 $ (4 $ - 2.50 $) Delux popcorn added the greatest value…
Q: QUESTION 23 In the short run, a firm using variable labor and fixed capital inputs achieves the O…
A: Average Total Cost (AC): Average total cost is the ratio of total cost and units that that the firm…
Q: 2. Say we have a profit maximizing firm that produces one output good with two factor inputs. The…
A: Short-run production function shows the output by using one factor of the production variable and…
Q: The set of lines below reflect information about the cost structure of a firm. Use the figure to…
A: The total cast is defined as the expenses being incurred by the producer in order to produce goods
Q: Cost 16 MC 14 12 10 8 6 4 2 ATC AVC D, MR 0 10 20 30 40 50 60 70 80 90 Output The firm's long-run…
A: In a perfectly competitive market, the long-run supply curve begins at the minimum point of the…
Q: 2. A firm's production function is Q = L0.5K 0.5. It is the short run and K is fixed at 100. The…
A: The production function is the mathematical relationship between different bundles of inputs and…
Q: A firm is a price taker if it sets its O price based on the demand curve it faces own price, but…
A: Price is determined through market forces of demand and supply in perfect competition. Price is…
Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…
A: MC = AVC , is shut down point for firm as the firm will not benefit from continuing the production.…
Q: You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One…
A:
Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…
A: When P is $25, Quantity is taken from minimum AVC which is 30,000When P is $70, Quantity is taken…
Q: Consider the three figures below, depicting possible cost functions for a firm. The horizontal axis…
A: Through the case a firm faces 3 possible cost function graphs. The task will be to build up the…
Q: What is the elasticity of substitution for the production function f(K, L) = K2 + L2? O b. o = %3D O…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Carl is an apple farmer. Assume there is price taking in the market for apples. SRS is the short-run…
A: A firm is a price taker and can sell any quantity of the commodity at the market determined price…
Q: is the firm's total cost function? TC = 20,000 + (1,000q). TC = 1,000q. TC = 20,000. 20,000 +…
A: A firm has a fixed production cost of $20000 and a constant marginal cost of production of $1000 per…
Q: A leftward shift of a product supply curve might be cause by O An improvement in the relevant…
A: Introduction A supply curve shows the relationship between the cost of a good or service and the…
Q: The table below shows the short-run cost data of a perfectly competitive firm that produces plastic…
A: The profit maximizing output level arises at quantity level where the marginal revenue equals the…
Q: Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the…
A: The provided graph is:
Q: Refer to Figure 3 in Question 29. The quantity of output at which the MC and ATC curves cross is the…
A: In industrial association, the minimum efficient scale (MES) or efficient scale of creation is the…
Q: If the firm is producing at an output level where marginal revenue exceeds marginal cost, then the…
A: For a firm, output is maximized at the point where the two conditions are satisfied: Marginal…
Q: IV. Will can produce a higher grade, Gw, on an upcoming economic exam by studying. His production…
A: Introduction Marginal rate of technical substitution (MRTS) is an economic concept which measures…
Q: In the long run, if the firm decides to keep output at its initial level, what will it likely do? O…
A: The following graph shows the short run average total cost curve and the long run average cost curve…
Q: Hi, I am studying chapter 11 from Microeconomics 21st edition. I am still confused about a certain…
A: The marginal cost curve of a firm cut the average total cost curve at its minimum point. In initial…
Q: At a current level of production of 10,000 per day in its Garner plant, the marginal cost of…
A: According to the question, it is given that : Output per day is 10,000 Marginal Cost is 50 cents…
Q: Refer to Figure 2, Graph (a). Production is O possible at points P, R, S, and T, but efficient only…
A: The PPF illustrates opportunity cost(OC) which shows the trade-off between producing one good over…
Q: The owner of Tie-Dyed T-shirts, a perfectly competitive firm, has hired you to give him some…
A: In short run , A firm should shut down when the market price is less than the average variable…
Q: graph pected produ educe its output to 600 units in the short run, it will use the plant size…
A: SATC stands for short run average total cost. SATC curve shows the average total cost of producing…
Q: A furniture maker currently produces 100 tables per week and sells them for a profit. She is…
A: Here, it is given that the furniture market is currently earning a profit and she wants to expand…
Q: What is the firm’s total variable cost at this level of output? $ e. What is the firm’s…
A: A shutdown stage is a level of functions at which a company experiences no profit for continuing…
Q: Consider the graph below for a firm. At point T, we know that the firm K TC = Total Cost; Q=f(K, L);…
A: Here, given graph shows total cost line and isocost curve of a specfiic firm.
Q: 4. For production functions i) q = K0.25L0.25, %3D ii) q = K0.5Lº.5. iii) q = KL a) Assume w= $20…
A: *Hi there as you have posted multiple sub parts we will only solve first three following our…
Q: Time left 1:12:53 A firm's total short-run cost function is C(y) = 12y³ – 8y? + 30y + 12. At what…
A:
Q: The profit (in dollars) from the sale of x lawn mowers is II(x) = 70 x-0.07 x2 - 750. The correct…
A: Below is the given values:
Q: will supply a positive amount of output, so long as the price is greater than or equal to: a. $15 p.…
A: TC = 24Q + 3Q3 - 12Q2 Divide TC with Q to get AC => AC = TC / Q => AC = 24 + 3Q2 - 12Q…
Q: 1. A firm’s production function is , where Ldenotes the size of the workforce. Find the value of…
A: Suppose the given equation is: Q = 50L - 0.01L2 The formula to find MPL = aQ/ aL 50 - 0.02L2-1 50 -…
Q: Complete the following table and what production technique should this firm use: Assuming the price…
A: I am assuming data to be like this Technique Quantities produced Number of labor Units…
![A firm will most likely decide to decrease production, if its
O A. MC>0.
O B. MR> MC.
O C. MR <MC.
O D. MR = MC.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce25e68c-7709-4841-bcbc-d08d51f1992b%2F23be5bfe-ede6-47ee-9f1b-e77903e6233b%2F51q4lp_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Imagine a firm in a competitive market comes up with a new production method, which halves its marginal cost at all levels of Q. Fixed costs are unaffected. Which of the following statements are true? O a. The firm's AC at all levels of Q would be lower. O b. The firm would extract an innovation rent from selling at the market price with lower costs. Oc. The firm's point of minimum AC would be a higher level of Q. O d. The innovation would immediately cause the market price to drop.The firm will maximize profits by producing____ units of outputs (Enter your response as an integer.)2. A competitive firm uses two variable factors to produce its output, with a production function q min{x₁, x₂}. The price of factor 1 is $8 and the price of factor 2 is $5. Due to a lack of warehouse space, the company cannot use more than 10 units of x₁. The firm must pay a fixed cost of $80 if it produces any positive amount but doesn't have to pay this cost if it produces no butput. What is the smallest integer price that would make a firm willing to produce a positive amount? b. d. $44 $41 $29 $13 $21
- The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run. Plant 1 Plant 2 Plant 3 Output ATC Output ATC Output ATC 10 $ 10 10 $ 15 10 $ 20 20 9 20 10 20 15 30 8 30 7 30 10 40 9 40 10 40 8 50 10 50 14 50 9 What is the long-run average cost of producing 10 units of output? Multiple Choice $10 $15 $20 $457. You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following data at his present level of production: Output = 2000 pounds, market price = $5.00, total cost =$8000, fixed cost=$2000, marginal cost=$5. The minimum of AVC occurs at {1000 pounds at $2} and the minimum of ATC at {1500 pounds at $3.5}. Please help Jack with the following questions based on the above figures: a. Draw a graph for the raw cotton market and a graph for Jack’s farm current situation that includes MC, ATC, and AVC, labeling all relevant points on axes with numerical values. Is Jack maximizing the profit (minimizing the loss)? Why or why not? Label the total profit/loss area. b. Suppose more farmers enter the raw cotton market until the market price is $3.00 per pound. On the same graphs, show the effect of this change in the market place. Would you like to suggest Jack leaving the market in the short run? Explain your answeA firm has a fixed production cost of $1,000 and a constant marginal cost of production of $700 per unit produced. What is the firm's total cost function? O A. TC = 1,000 + (700q) O B. TC = 1,000 + (700q). OC. TC = 700q. O D. TC = 1,000. The firm's average total cost (ATC) of production is O A. ATC = 1,000 + (700q). OB. 1,000 + (700q) ATC = Oc. 1,000 ATC = O D. ATC = 700q. O E. ATC = 700. If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain. OA. very small because the average total cost of production rises with output. O B.- very large because the average variable cost of production falls with output. OC. very small because the average fixed cost of production rises with output. O D. very small because the total cost of production rises with output. O E. very large because the average total cost of production falls with output.
- Only typed answerClick on the point that represents a long-run equilibrium. 4 0 MC ATC 9A manufacturer of hospital supplies has a uniform annual demand for 180,000 boxes of bandages. It costs $20 to store one box of bandages for one year and $500 to set up the plant for production. How many times a year should the company produce boxes of bandages in order to minimize the total storage and setup costs? The company should produce boxes of bandages time(s) a year. you ge.. Next R. RAZER
- The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average cost curve (LRAC); fom example, Q, marks the point of tangency between ATC, and LRAC. The orange point on ATC, indicates the firm's current output level in the short run (Q). ATC, ATC ATC LRAC ATC, ATC OUTPUT PER PERIOD COST PER UNITQUESTION 24 Which of the following is most likely to be a fixed input for Peter's Country Fresh Pies? Oa ovens Ob berries c. milk Od. flour Oe. eggs QUESTION 25 The short run is a period of time: O a during which all resources are fixed. Ob during which at least one resource is fixed. OC. less than or equal to six months. d. during which profits are always positive. Oe during which all resources are variable. QUESTION 26 The long run is a period of time: Oa during which all resources are fixed. Ob. less than one year. c. during which all resources are variable. d. during which profits are always negative e that is the same for all industries. QUESTION 27 Increasing marginal returns to the variable factor of production are generally the result of a falling wages
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)