A5 estion 16Cost and demand conditionsATCAVCd = MR$4MC1513| |4369 12 16 179Bushels of wheatIf price is $7, which of the following is true?1) The firm is earning a positive profit.Price per bushe! Bushels of wheatIf price is $7, which of the following is true?O 1) The firm is earning a positive profit.2) The firm is earning a negative profit and should stay open in the long-3) The firm is earning a negative profit, but will shut down in the long-rumO 4) The firm is earning a normal economic profit.

In the given graph, when market price is $7, it can be seen that this price is equal to the marginal…

Cost and demand conditions ATC AVC d = MR MC 15 13 11 土 | | | | 4 3 6 9 12 16 17 q Bushels of wheat If price is $7, which of the following is true? 1) The firm is earning a positive profit. Price per bushel のト

Cost and demand conditions ATC AVC d = MR MC 15 13 11 土 | | | | 4 3 6 9 12 16 17 q Bushels of wheat If price is $7, which of the following is true? 1) The firm is earning a positive profit. Price per bushel のト

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.4CE

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Sampson Ltd produces two products that can be produced on either of two machines. Each month, only 5o0 hours of time are available on each machine. The time required to produce each item by hour and machine is: Machine Machine Product 1 Product 2 3 4 Month Month 1 Month 2 Month 1 Demand Demand Price Price Product 1 100 160 $45 $65 $10 Product 2 120 110 $35 The demand and price point for each product that customers are willing to pay are above. The company goal is to maximize revenue from sales from the next two months. Based on the provided information, how many constraints does this problem have excluding the non-negativity constraints?
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Assuming the blankets in this market are considered identical by consumers, how much profit will a perfect competitor earn? Enter your answer as a whole number without a dollar sign.