Calculate firm profit for a market price of $8.000. Is this firm in a long run equilibrium? A) $426,000,no B) zero, yes C) $568,000, no D) $2,272, yes.
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Calculate firm profit for a market price of
$8.000. Is this firm in a long run equilibrium?
A) $426,000,no
B) zero, yes
C) $568,000, no
D) $2,272, yes.
Step by step
Solved in 3 steps
- Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costsWhy will profits for films in a perfectly competitive industry tend to vanish in the long run?Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
- $ per ton 10 8 6.50 6 0 140 zero, yes $568,000, no $2,272, yes, 284 MC AC Thousand metric tons of lime per year Calculate firm profit for a market price of $8.000. Is this firm in a long run equilibrium? O $426,000, noWhen is an industry productively efficient? R OOD F4 A. When firms in that industry produce the amount of output that intersects with the minimum of their ATC curves ubmission B. When the short-run equilibrium market price is above the long-run equilibrium market price ← PREVIOUS or dº APR 20 % 5 C. When the market price for the good or service in that industry is the same as marginal revenue D. When the average total cost curve intersects the marginal revenue curve at its lowest point T F5 6 MacBook Air F6 Y & 7 F7 U stv * CO 8 A DII F8 - ( 9 DD F9 O 0 VIEW F10 P09:28 Wed 8 Dec VPN O 92% •.. managebac-prod-china.s3.cn-north-1.amazonaws.com.cn A The table below shows the short-run production function for Briana's Brick Shop. Number of Brick Masons Total Product per Hour 1 9 2 19 30 4 42 52 61 7 63 8 60 (a) After which brick mason do diminishing marginal returns begin for Briana's Brick Shop? Explain using numbers. (b) Assume Briana's Brick Shop sells its bricks in a perfectly competitive market at a price of $6. Calculate the marginal revenue product of the seventh brick mason. Show your work. (c) Briana's Brick Shop hires brick masons in a perfectly competitive labor market for brick masons at a wage rate of $48 per hour, and the market price of bricks remains $6. How many brick masons will Briana's Brick Shop hire to maximize its profit? Explain using marginal analysis. (d) Assume brick masons and machines are substitutes in the production of bricks by all brick-making firms in the market. If machines, a fixed input, become more expensive and…
- Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are: Sold per Day 0 100 200 300 400 500 600 700 Price per Meal $3.50 $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 O A. 700 meals at $1.75 per meal. OB. 300 meals at $2.75 per meal. OC. 600 meals at $2.00 per meal. OD. 400 meals at $2.50 per meal. ✔ OE. 500 meals at $2.25 per meal. Total Fixed Cost $150 $150 $150 $150 $150 $150 $150 $150 ... Total Variable Cost $300 $500 $650 $750 $840 $905 $995 Total Revenue 0 $325 $600 $825 $1,000 $1,125 $1,200 $1,2258. Consider a firm's short run and long run average costs depicted below: 300 270 240 210 180+ Wunt 150 120+ 90 60 30 ---- W X AC LRAC 200 400 600 800 1000 1200 1400 1600 1800 2000 # of units Suppose this firm has been producing 400 units per month for a long time. If it decides to increase its output to 800 units per month, then its average cost will O A. fall from $300/unit to $150/unit initially, then rise to $240/unit eventually. O B. fall from $300/unit to $60/unit initially, then rise to $240/unit eventually. O C. fall from $300/unit to $60/unit and remain there. O D. fall from $300/unit to $240/unit and remain there. O E. rise from $150/unit to $240/unit initially, then fall to $60/unit eventually. OF. rise from $150/unit to $300/unit initially, then fall to $60/unit eventually. O G. fall from $150/unit to $60/unit and remain there. OH. rise from $150/unit to $240/unit and remain there.
- Output TFC TVC TC MC ATC A 25 25 ---- -- ------- 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 2nd unit of output? Cannot be determined. 15 25 30 O O O OA strawberry farmer, operating ih a perfectly competitive market, is currently producing 99 packs of strawberries. The market price for a pack of strawberries is $6 a pack. The marginal cost of producing one more pack for the farmer is $5. What is the marginal revenue the farmer will receive from producing his 100th pack of strawberries? (Hint: If you aren't sure what marginal revenue means, look it up before choosing an answer) O $0.06 O $6 O $1 O $100= In the diagram below the perfectly competitive firm sells its product at price p $5.50. Which of the following responses best describes what area B is measuring? o, $ per ton 6.12 6.00 5.50 5.14 5.00 0 A = $62,000 B = $36,000 50 100 revenue. MC AC AVC р 140 q, Thousand metric tons of lime per year The firm's revenue in excess of its variable cost. All of the options are correct. The maximum amount of fixed costs which the firm can pay before running out of The amount of money which is saved by continuing to operate versus shutting down.
