ATCPriceMCAVC8.7-9.10 11 12 13QuantityThe graph shows the cost curves of a firm in a competitive industry. The market price is $5. In the short run, the firm shouldChoose one:* A produce the output at which MR = MC and earn a profit.B. produce the output at which MR = MC and suffer a loss.O C. shut down the operation.9 D. There is not enough information to answer the question.1st attempt

Perfect competition is a market structure where there are large number of buyers and sellers in the…

Answered: ATC Price MC AVC 8. 7- 9. 10 11 12 13…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question in image. Stuck on this economic question for hours. If you don't know how to slove it, let someone else try before rejecting it Thanks :)
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
8
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.
Figure 14-2 Suppose a firm operating in a competitive market has the following cost curves: 20 MC 18 16 14 12 ATC 10 8 7 4 1 3 4 5 6 7 8 9 10 QUANTITY Refer to Figure 14-2. If the market price is $10, what is the firm's total revenue? a. $35 b. $30 C. $15 d. $50 PRICE
1. Use the table below to answer the following questions: Costs Revenues Total Cost Marginal Cost Quantity Price ($) Quantity Produced Total Marginal Revenue Demanded Revenue 100 170 140 160 184 150 3 230 3 140 280 4 130 5 335 395 5 120 110 7 475 7 100 575 8 95 a. Find the average fixed cost and average variable cost for the 4th unit of output. b. How much does profit change if 6 units are sold instead of 5?
In Pakistan internet service is ought to be considered as the perfectly competitive industry. Following is the information available for the internet service provider A operating in the market. Total output Total Cost 0 180 10 280 20 400 30 530 40 670 50 820 60 980 70 1150 a. Briefly discuss the characteristics of the market Service Provider A is operating. b. If the market price of the fruit is 16 i. Find how much output will the firm produce (Show calculations). Illustrate it graphically ii. Find if the firm is maximizing profit or minimizing loss (show calculations) and highlight the same in the graph drawn in part ii. iii. From your answer in part iii, explain if the firm is operating in the LR or SR.
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: ; : $
Price, cost of bushel $30 MC 26 22 ATC 18 14 10 Break-even price 2 1 4. 6. Quantity of tomatoes (bushels) Look at the figure Total Cost for Tomato Producers. The market for tomatoes is perfectly competitive. The market price of a bushel of tomatoes is $14. The farmer's total cost at the profit-maximizing number of bushels is: O $3.50. $14.00. $56.00. O $72.00. O None of these options is correct.
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?
Brody's firm produces trumpets in a perfectly competitive market. The table below shows Brody's total variable cost. He has a fixed cost of $240, and the price per trumpet is $60.-Calculate the average total cost of producing 6 trumpets. Show your work. -Calculate the marginal cost of producing the 11th trumpet. -What is Brody's profit-maximizing quantity? Use marginal analysis to explain your answer. -At the profit-maximizing quantity you determined in part (c), calculate Brody's profit or loss. Show your work. -Brody also produces saxophones at a loss in a perfectly competitive market. Draw a correctly labeled graph for Brody's firm showing the following at a market price of $200. -Brody's profit-maximizing quantity of saxophones -Brody's loss, completely shaded Quantity Total Variable cost 6 $120 7 $145 8 $165 9 $220 10 $290 11 $390
Part a a.an economic profit b.a normal profit c.a loss Part c a.an economic profit b.a normal profit c.a loss . .

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