Comment on these statements: 1: Supply curve of the Constant cost industry. 2: supply curve of the increasing cost industry. 3: supply curve of the Decreasing lost Industry.
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- 0 1 2 3 4 5 Problem 1. Fill out the missing data. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Total Cost - Average Variable Cost 7 10 37 22.5 10.50 15 The market price for the firm's output is $14.50. a) What quantity will the firm produce? Q = b) What is the firm's profit? Profit= P = P = c) What is the breakeven price? d) What is the shutdown price? f) Are consumers or producers affected by the tax more? Explain.Illustrate and explain the shape of the Long Run Industry Supply Curve for a Decreasing Cost Industry.The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool-manufacturing firm in Peru. The alpaca wool industry is competitive. Output (units of wool) 0 1 2 3 4 5 6 AVC Market Price a. $22.00 b. $18.00 c. $16.00 20.00 17.00 16.70 17.00 18.00 22.33 ATC Qmax - 30.00 22.00 20.00 19.50 20.00 24.00 MC ($) For each market price given below, give the profit-maximizing output quantity and state whether Alpacky's profits are positive, negative, or zero. Also state whether Alpacky should produce or shut down in the short run. 20.00 14.00 16.00 18.00 22.00 44.00 Profit (Click to select) (Click to select) (Click to select) ✓ Produce in Short Run (Click to select) ✓ (Click to select) (Click to select) ✓
- The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than marginal cost. The price of fertilizer must be equal to average variable cost. The price of fertilizer must be less than average total cost. The following graphs show the cost curves faced a typical firm, the demand for fertilizer, and possible price and supply curves. (? (? Firm Market Demand ATC TAVO MC Quantity Quantity Price and Costs P. PriceHow would I do this?The industry in the figure below consists of many firms with identical cost structures, and the industry experiences constant returns to scale. Consider a change in demand from D₁ to D₂, which increases price from $20 to $30 in the short run. Price (S) 50 40- 30- 20 10- 0 10 20 Market 30 B Quantity reset D 40 5 50 LRS 1 S₂ Instructions: Round your answers to the nearest whole number. a. Draw the new supply line that occurs after the market adjustments take place. Instructions: Use the tool provided (S₂) and plot only the endpoints. The new equilibrium price will be $ b. Draw the long-run supply curve. Instructions: Use the tool provided (LRS) and plot only the endpoints over the entire range of output (0 - 60). and the new equilibrium quantity will be
- The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (quantity-0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to drawit. To refer to the graphing tutorial for this question type, please click here Price and cost 18 15 14 13 12 10 19/21 SUBMIT ANSWER 13 OF 21 QUESTIONS C OMPLETED 28 MacBook Pro 금□ F7 F8 F9 F1o F2 F3 F5Hand written solutions are strictly prohibitedThe diagram shows a price-taking bakery's marginal and average cost curves, and its isoprofit curves. The current market price for bread is P*= 2.50. Which of the following statements is correct? 8 Price, P (€); cost 4 3.70 2.50 2 0 0 Select one: 20 40 60 80 100 120 140 Quantity of loaves, Q 160 180 O a. The bakery is a price setter and sets its price as 2.50. b. The bakery maximises its profits by supplying 160 loaves. O c. The bakery's profit is 200. Marginal cost curve Isoprofit curve: €200 Isoprofit curve: €80 Firm's demand curve Zero-economic- profit curve (AC curve) 200 O d. The bakery's profit decreases until the quantity is 120, and then increases. e. The marginal cost curve is the bakery's supply curve.
- How would I do this? Just Dd. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3). Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. (1) Price $26 32 38 41 46 56 66 ▶ (2) Quantity Supplied, Single Firm (3) Profit (+) or Loss (-) (4) Quantity Supplied, 1,500 FirmsThe figure below shows the long-run average cost curve for the only firm producing electricity in the market. The current quantity demanded is indicated at 100,000 kilowatts per hour. Price per unit LRAC 100,000 Q Number of kilowatts per hour Due to economies of scale, which of the following is true? a. This firm should not be allowed to provide electricity. b. It makes economic sense for this firm to be the only producer of electricity. C. The government should take over the electricity market. d. Many firms should be in this industry.
