age operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10. In this situation, A Joe's Garage is earning a positive economic profit. B Joe's Garage should shut down immediately. C the market price will rise in the short run to increase profits. D Joe's is losing money in the short run, but should continue to operate. 4. Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a- stick. Assuming Flo and Rita are the only suppliers in the market, if the market quantity supplied is 18, the price must be Quantity of Frozen Latte-On-A-Stick Supplied. Price. Flo's Supply Rita's Supply. 1. 0. 0. 2. 0. 3. 3. 4. 6. W 4. 9. 9. la 5. 15 12. Table 11

age operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10. In this situation, A Joe's Garage is earning a positive economic profit. B Joe's Garage should shut down immediately. C the market price will rise in the short run to increase profits. D Joe's is losing money in the short run, but should continue to operate. 4. Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a- stick. Assuming Flo and Rita are the only suppliers in the market, if the market quantity supplied is 18, the price must be Quantity of Frozen Latte-On-A-Stick Supplied. Price. Flo's Supply Rita's Supply. 1. 0. 0. 2. 0. 3. 3. 4. 6. W 4. 9. 9. la 5. 15 12. Table 11

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 4CQQ

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QUESTION 16 Jose's restaurant operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC= 20, AVC = 15, and the price per unit is 17. In this situation, O a. Jose's restaurant is earning a positive economic profit. b. Jose's restaurant should shut down immediately. O c. the market price will rise in the short run to increase profits. d. Jose's restaurant is making a loss but should continue to operate, because shutting down is more costly.
Tomas is the general manager for a local automated car wash. The market he operates is perfectly competitive. Every car wash in the area is charging $7 for a car wash, which is also the marginal cost per wash. What will happen to Tomas’ profits if he changes his price to $8. Why? What about the price of $5? What is his profit-maximizing price?
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Assume that the market for onions is competitive/perfectly competitive market. Further assume that this market is in a long run equilibrium with an equilibrium price of$3for a bag of onions. Ollie's House on Onions is a firm in the market for onions. Ollie's sells 200 bags of onions each week. 1. Using the model of a competitive/perfectly competitive market show what are Ollie's MC, ATC, MR, total revenue. total cost, and economic profit? Show all of this on a graph (see instructions below). 2. Assume that the demand for onions increases and the price per bag of onions goes to$5. Also assume that Ollie's ATC rises to$3.50a bag as he maximizes profit by selling 400 bags a week. What are Ollie's total revenue, total costs and economic profit? Show all of this on a graph (see instructions below). Note: The graphs for each question can be created manually (drawn by hand on paper) or using any software that I can read, scanned and submitted along with this assignment as an uploaded file.…
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Tomas is the general manager for a local automated car wash. The market he operates is perfectly competitive. Every car wash in the area is charging $7 for a car wash, which is also the marginal cost per wash. What will happen to Tomas’ profits if he changes his price to $8. Why? What about the price of $5? What is his profit-maximizing price?
Please solve the question on the word
The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 / / / $ 95 1 $ $ $ 115 2 125 3 150 4 200 5 270 6 350 7 450 a. Complete above the table. b. What is the break-even price? Break-even price: $ c. What is the shutdown price? Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; : $ e. If the market price of the product is $100, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; : $
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If a profit-maximizing, competitive firm is producinga quantity at which marginal cost is between averagevariable cost and average total cost, it willa. keep producing in the short run but exit themarket in the long run.b. shut down in the short run but return toproduction in the long run.c. shut down in the short run and exit the market inthe long run.d. keep producing both in the short run and in thelong run.
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