COSIMCАТСAVCMR1514117501,100 1,3501,800QuantityFigure 12-5 shows cost and demand curves facing a typical firm in a constant-cost,perfectly competitive industry.Refer to Figure 12-5. to answer the following questions, assuming market price is$20.a. What is the profit maximizing quantity produced by the firm?1350b. What is the average total cost incurred by the firm at that quantity?1520 PriceandcostMCATCAVC20MR1514117501,100 1,3501,800QuantityFigure 12-5 shows cost and demand curves facing a typical firm in a constant-cost,perfectly competitive industry.Refer to Figure 12-5. to answer the following questions, assuming market price is$20.c. What is the average variable cost incurred by the firm at that quantity?d. Can you tell what would be the price charged by this perfectly competitive firm in thelong run?

COSI MC ATC AVC MR 15 14 11 750 1,100 1,350 1,800 Quantity Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. to answer the following questions, assuming market price is $20. a. What is the profit maximizing quantity produced by the firm? 1350 b. What is the average total cost incurred by the firm at that quantity? 15 20

COSI MC ATC AVC MR 15 14 11 750 1,100 1,350 1,800 Quantity Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. to answer the following questions, assuming market price is $20. a. What is the profit maximizing quantity produced by the firm? 1350 b. What is the average total cost incurred by the firm at that quantity? 15 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The figure below depicts the short-run market equilibrlum In a perfectly competitive market and the cost curves for a representative firm In that market. Assume that all firms In this market have identical cost curves. Entire Market Single Representative Firm MC ATC ----...... 5 2 300 500 700 10 25 30 Quantity (Number of Units) Quantity (Number of Units) A starting assumption about this Industry was that all of the firms In the market had Identical cost curves. This assumption Is Multiple Choice unrealistic because each firm is unique. realistic because any cost-saving innovation adopted by one firm will be quickly adopted by others. unrealistic because firms closely guard the details of their production processes. realistic because firms rarely seek out cost-saving innovations.
ts dings Figure 12-17 Price (dollars per pound) Market price 5 4 3 2 0 10 20 30 Supply of apples Demand for apples 40 50 Quantity (thousands of pounds) Price and cost (dollars per pound) 5 Market 3 price 2 1 0 10 20 MC # 30 40 50 Quantity (thousands of pounds) The graphs in Figure 12-17 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry. Refer to Figure 12-17. Which of the following statements is true? The current market price is $3 but the price will increase in the future as the market demand increases. The current market price is $3 but the price will fall in the long-run as a result of a decrease in demand. The current market price is $3 but the firm will be able to increase the price in the future. ATC D=MR The current market price is $3 but the price will fall in the long-run as new firms enter the market. hatC av G CH If p pe ec COS In a tak ma pro ave hav So, lessage Chat
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1) Briefly explain how the total revenue for a profit-seeking film is determined 2)Briefly explain what is meant by the term "fixed costs" and provide three examples of same. What determines a firm's level of fixed costs? 3)Contrast the rold of fixed costs and variable costs in economic decisions about future prodiction 4)Briefly compare and contrast the perceived demand curve for a monopolitically competitive firm and a perfectly competitive firm. 5)Briefly explain what quantity a profit maximizing monopolistic competitor will seek. Why not this type of competitive frim is productively efficient?
QUESTION 9 The figure shows the short run conditions of a firm in a perfectly competitive market. In the long run, --will--the industry so that the market supply curve shifts to the ------------until prices------------sufficiently to allow all firms to make a normal profit only. Unit revenue and cost R13 R10 E MC AC AR=MR 0 Quantity 1200 a) Existing firms, exit, right, drop b) New firms, enter, right, drop c) Existing firms, exit, left, rise d) New firms, enter, left, rise (4
Assume that a purely competitive firm has the schedule of costs given in the table below. output TFC TVC TC 0 $500 $0 $500 1 500 150 650 2 500 200 700 3 500 260 760 4 500 340 840 5 500 450 950 6 500 590 1090 7 500 770 1270 8 500 1000 1500 9 500 1290 1790 10 500 1650 2150 Complete the table below to show the total revenue and total profit of the firm at each level of output the firm might produce. Assume market prices of $50, $150, and $250. Market price = $50 Market price = $150 Market price = $250 Output Total revenue Profit (+) or loss (−) Total revenue Profit (+) or loss (−) Total revenue Profit (+) or loss (−) 0 $_____ $_____ $_____ $_____ $_____ $_____ 1 _____ _____ _____ _____ _____ _____ 2 _____ _____ _____ _____ _____ _____ 3 _____ _____ _____ _____ _____ _____ 4 _____ _____ _____ _____…
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Refer to the graph shown, which depicts a perfectly competitive firm that maximizes profit. If the prevailing market price is $4: Price 8765432-0 1 ง C MC ATC 0 20 40 60 80 100 120 Output per day Show Transcribed Text LRAC Group of answer choices Economic profits are $500 and the quantity supplied from the firm is 200 units per day. Economic profits are $0 and the quantity supplied from the firm is 100 units per day. Economic profits are $100 and the quantity supplied from the firm is 100 units per day. Economic profits are -$100 and the quantity supplied from the firm is 80 units per day.
18 Market Representative Firm MC i of A a $7 MR = P ATC b $5 AVC $2 D1 18,000 70 100 115 Quantity (Q) Output (Q) The diagram above shows a Perfectly Competitive market on the left, and a representative firm supplying in that market on the right. In the long run we would expect the market and the Price to Select one: a. existing firms to exit; increase b. new firms to enter; increase С. new firms to enter; decrease d. existing firms to exit; decrease Price $$$
(Figure 10-3)What is the maximum economic profit this firm depicted in Figure 10-3 will be able to earn? Group of answer choices $600 $200 $400 $0
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The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $7.50, a profit-maximizing firm would: Price and cost 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2 MC y A A 1 B a 10 11 12 ATC AVC 13 Quantity Produce between 10 and 11, for a positive economic profit Produce about 9, for an economic profit of over $9 Produce between 10 and 11, for an economic profit of about $0 Produce about 9, for an economic profit of less than $9 Produce about 10, for an economic profit of about $20