he table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm thatroduces children's mittens in a competitive market.Smitten's Production CostsQuantity (pairs ofmittens)Marginal Cost(dollars)$1.60Average Total Cost(dollars)$2.22.172.2125302.00352.453.554.00402.38452.562.85505.50556.003.14608.503.58Instructions: In part a, enter your answer as a whole number. In parts b, c. and d, round your answers to two decimal places.a. If the market price of children's mittens is $6.00 per pair, how many palrs of children's mittens should Smitten produce per week tomaximize its profits?pairs of mittensb. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens?%243.28c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity ofmittens?d. What are Smitten's weekly profits if the market price is $5.50 per pair and the firm produces the profit-manimizing quantity ofmittens?6 of 10Next>< Prev

A perfectly competitive firm produces at P=MC in the short run. The market price of children's…

Answered: e table below shows the weekly marginal…

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 following table shows data for quantity (Q), price (P), fixed cost (FC), and variable cost (VC) for a hypothetical firm in a perfectly competitive market. Q FC VC TC MC TR MR P/L $72 $100 $0 1 72 100 64 72 100 84 3 72 100 114 4 72 100 184 72 100 270 a) Fill the table for total cost (TC), marginal cost (MC), total revenue (TR), marginal revenue (MR), and profit or loss (P/L). Make sure to show your work for at least one line of Q. b) What is the profit maximizing quantity? Justify your answer. NOTE: this is a FILE UPLOAD question. Work your solution in an excel file and upload it, or write down your solution in a piece of paper, take a picture with your smartphone and upload the picture. 2.
QUESTION 19 In this graph A the green line and red line only meet at Park Street The red line is most likely total cost the green line is most likely total revenue profit is maximized when the distance between the green line above the red line is the maximum
Costs and Profit Maximization Under Competition: End of Chapter Problem a. Use the variable cost (VC) information in the accompanying table to calculate average variable cost (AVC) and average cost (AC). Assume fixed cost (FC) is $350. Q FC VC AVC AC 10 $350 $100 20 $350 $180 30 $350 $240 40 $350 $300 50 $350 $450 60 $350 $630 70 $350 $840
Quizzes 2 $15+ $12 $10+ $7 0000 FIRM I MC ATC AVC q 20 30 38 48 55 The above graph represents a firm in a perfectly competitive market. If the price the firm receives for its product is $10 and the firm is producing a profit-maximizing quantity, then what is the firm's profit? -$60 $96 $114 $0
Suppose she runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear.
Macmillan Learning Ⓒ The graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Place the market supply curve at the correct location on the graph. Then, consider what would happen to the market if a third supplier enters the market, holding all else constant. Price per Stuffed Animal ($) 10 Incorrect 8 7 6 5 4 3 2 11 0 0 Market for Stuffed Animals Firm 1 Market Firm 2 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Quantity of Stuffed Animals A third firm would mean market supply increases.
The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing differe quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box. Instructions: Enter your answers as a whole number. a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 55 1 10 57 0.50 15 62 1 20 72 25 92 4 30 122 6.
A business's marginal cost has a minimum value of $3; its average variable cost has a minimum value of $6; and its average total cost has a minimum value of $7. Given this information, the business should exit at any price below and shut down at any price below Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b с e Question 2 f $3; $6 $6; $3 $7; $6 $6; $7 $3; $7 $7; $3
Concept: Calculate Profit Farmer Jones grows sugar. The average total cost and marginal cost of growing sugar for an individual farmer are illustrated in the graph to the right. Assume the rharket for sugar is perfectly competitive. According to the graph, farmer Jones will earn profit (positive economic profit as opposed to losses) at any market price above $10 per bushel. (Enter a numeric response using an integer.) Assume that the market price specifically is $24 per bushel. If farmer Jones produces the profit maximizing quantity, what will be her profit? $ To more easily identify the price and quantity, click on the graph to the right, and then adjust the slider to change the price and quantity. Each increment will increase the price by $2. Enter your answer in the answer box and then click Check Answer. 40- 36- 32- MC 28- 24- 20- Price and cost (dollars per bushel) 12- ATC 46 20 30 40 50 60 70 80 90 100 Quantity of Sugar (bushels per month) Question Help Q
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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?

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