Use the table below listing Average Total Cost (ATC)d and Marginal Cost (MC) for a firm in perfect competition to answer the following questions. Quantity ATC MC 1 17.5 15 14.3 12 3 10 10 4 16 20 22 31 In each scenario determine if the firm is profitable, breaks even, or incurs a loss. 1. If market price is $8, the firm 2. If market price is $14, the firm 3. If market price is $10, the firm
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- ATC MC PA e AVC P3 P2 P1 8 10 11 12 Quantity (per day) The figure above shows a firm in a perfectly competitive market. If the industry price is between P2 and P3: Firm makes loss but produces because total revenue is greater than total variable cost. Firm makes loss but produces because total revenue is greater than total fixed cost. Firm makes profits because total revenue is greater than total cost. Firm shuts down production because loss from producing is greater than total fixed cost. Price and costs (dollars)Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, then assuming this firm can earn enough revenue to cover its variable cost, it should produce: Price (S/doughnut) 0.35 p 0.30 0.25 0.20 0.15 0.10 0.05 0 0 10 20 30 40 50 60 Marginal Cost 70 80 90 Quantity (doughnuts/day) Average Total Cost 50 doughnuts per day. the quantity of doughnuts at which average total cost is minimized. the quantity of doughnuts at which average total cost equals the market price. the quantity of doughnuts at which marginal cost equals the market price.The data are for a firm operating in perfect competition. Output 1 Marginal Costs Average Variable Costs 70 65 60 60 62 64.3 70 76.25 2 3 4 5 6 7 8 70 60 50 60 70 80 100 120 Average Costs 200 130 103.3 92.5 88 86 88.6 92.5 Use the table above to answer this question. If the market price is $80, what is the profit-maximizing output and will be the firm profit or loss?
- 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 $0Rambutan is a fruit prized in Eastern Asia for its unique hairy look. Once peeled, it reveals a sweet, slightly sour, grape-like, gummy-tasting fruit. The graph shows the average total cost, marginal revenue, and marginal cost curves of a perfectly or (purely) competitive rambutan farmer. This firm is incurring a firms will this market. In the long run, What is this firm's profit or loss, rounded to the nearest penny? If the market price fell to $9.51, the firm would Price per bushel $12.11 10.11 9.51 MR C 5.4 A MC B ATC 7 Quantity (bushels)he table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that roduces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $2.2 2.17 2.21 25 30 2.00 35 2.45 3.55 4.00 40 2.38 45 2.56 2.85 50 5.50 55 6.00 3.14 60 8.50 3.58 Instructions: 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 to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? %24 3.28 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? d. What are Smitten's weekly…
- he following problem traces the relationship between firm decisions, market supply, and market equilibrium in a perfectly competitive market. Complete the cost table below. (Round your responses to two decimal places.) q TFC TVC TC AVC ATC MC 0 $4040 $0 $4040 long dash— long dash— long dash— 1 4040 125125 165165 125125 165165 125125 2 4040 167167 207207 83.583.5 103.5103.5 4242 3 4040 195195 235235 6565 78.3378.33 2828 4 4040 209209 249249 52.2552.25 62.2562.25 1414 5 4040 237237 277277 47.447.4 55.455.4 2828 6 4040 279279 319319 46.546.5 53.1753.17 4242 7 4040 335335 375375 47.8647.86 53.5753.57 5656 8 4040 405405 445445 50.6350.63 55.6355.63 7070 9 4040 489489 529529 54.3354.33 58.7858.78 8484 10 4040 587587 627627 58.758.7 62.762.7 9898 Using the…The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box. Instructions: Enter your answers as a whole number a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Quantity of Gif Boxes 5 10 15 20 25 30 Choco Lovers Cost and Revenue TC ($) MC ($) MR ($) 55 4 57 4 62 4 72 92 122 30 gift boxes 1 0.50 1 2 4 6 4 4 4 What will the new profit or loss be per gift box? AR ($) 4 4 4 Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. b. Given a price of $4 per gift box, how many boxes of chocolate should Choco Lovers produce? 25 gift boxes What will the profit or loss be per gift box? per gift box c. Suppose that Choco Lovers raises the price to…41 Output Total Total (Q) Price Revenue Cost 10 $12.00 $140 E of 20 $12.00 $220 30 $12.00 $380 40 $12.00 $620 The table above shows revenue and cost information at four different Output (Q) levels for a Perfectly Competitive firm in the short run. If the firm increases its Output from 30 to 40, Marginal Cost (MC) is. Select one: a. $12 b. $24 c. $160 d. $240
- The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a perfectly competitive firm that produces novelty ear buds in a competitive market. The market price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 10 3.5 15 3 20 2.44 2.86 25 3.56 3 30 4.02 3.17 35 5.48 3.5 40 5.98 3.81 45 8.49 4.33 Instructions: In part a, enter your answer as the closest given whole imber. a. If Buddies wants to maximize its profits, how many pairs of ear buds should it produce? pairs Instructions: In parts b-d, round your answers to 2 decimal places. b. At the profit-maximizing quantity, what is the total cost of producing ear buds? $ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what is Buddies weekly profit? 2$PRODUCTION| 2 8 10 12 14 LEVEL MARKET 3 3 3 3 PRICE ТОTAL INCOME TOTAL FIXED 14 14 14 14 14 14 14 COST ТОTAL 4.5 5.5 6.7 8.2 10 13.25 VARIABLE 25 COST TOTAL COST TОTAL BENEFIT MARGINAL 3 3 3 3 INCOME AVERAGE TOTAL COST Develop the following numerical example of perfect competition, which should add the procedure for calculating the missing costs, income, and profit. Considering the following data: a) Indicate at what level of production the MC is equal to the price, so that the company is perfectly competitive in the short term. 3. 3.Help Save & Exit Submit The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that produces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) 15 Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $1 20 2.00 1.25 25 2.45 1.49 30 3.55 4.00 1.83 35 2.14 40 5.50 6.00 8.50 2.56 45 2.94 50 3.5 Instructions: In part a, enter your answer as a whole number. In parts b, c and d, round your answers to 2 decimal places. a. If the market price of children's mittens is $6.00 per pair, how many pairs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? 24 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? p..........: d.…
