At a market price of $83 a batch, what quantity does Lin’s produce and what is the firm’s economic profit in the short run? Do firms enter or exit the market and what is Lin’s economic profit in the long run?
At a market price of $83 a batch, what quantity does Lin’s produce and what is the firm’s economic profit in the short run? Do firms enter or exit the market and what is Lin’s economic profit in the long run?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 23RQ: What two lines on a cost curve diagram intersect at the shutdown point?
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Question
At a market price of $83 a batch, what quantity does Lin’s produce and what is the firm’s economic profit in the short run? Do firms enter or exit the market and what is Lin’s economic profit in the long run?
![The table below shows the demand schedule for Lin's Fortune Cookies. The second table shows
some cost data for Lin's.
Quantity
(batches
per day)
Price
Quantity
demanded
AFC
AVC
ATC
MC
(dollars per batch)
(dollars per
batch)
(batches per day)
84.0
51.00
135
37
50
2
42.0
44.00
86
50
29
50
3
28.0
39.00
67
27
50
21.0
36.00
57
32
50
4
5
16.8
35.20
52
50
5
40
6
14.0
36.00
50
50
6
57
7
12.0
39.00
51
83
10.5
44.50
55](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2ac8a3c2-981d-4486-9333-aacf2843927f%2F00f6e766-9b88-4ab7-8bbf-7c09a09e3ecc%2Fqzn4vli_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The table below shows the demand schedule for Lin's Fortune Cookies. The second table shows
some cost data for Lin's.
Quantity
(batches
per day)
Price
Quantity
demanded
AFC
AVC
ATC
MC
(dollars per batch)
(dollars per
batch)
(batches per day)
84.0
51.00
135
37
50
2
42.0
44.00
86
50
29
50
3
28.0
39.00
67
27
50
21.0
36.00
57
32
50
4
5
16.8
35.20
52
50
5
40
6
14.0
36.00
50
50
6
57
7
12.0
39.00
51
83
10.5
44.50
55
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