**Exhibit HW2.4: Total Revenues and Total Costs for a Representative Competitive Firm**This exhibit consists of a graph and a data table related to total revenues and total costs. **Graph Description:**- **Axes:** - The vertical axis represents "Money." - The horizontal axis represents "Q" which stands for quantity.- **Lines:** - The line labeled "TC" (Total Cost) increases gradually and then steeply. - The line labeled "TR" (Total Revenue) begins at the origin and rises linearly.- **Areas Highlighted:** - The area between the axes and point A marks Fixed Costs at level "TFC." - Points on the graph are labeled (A, B, C, D, E) to indicate different levels of cost and revenue.- **Dashed Horizontal Lines:** - Correspond to various cost levels (C1 to C61) and Total Fixed Costs (TFC).**Data Table:**- **Given:** - Q1 = 2 - Q2 = 5 - Q3 = 8 - Q4 = 11- **Cost Levels:** - TFC = $1.60 - C1 = $4.00 - C2 = $8.20 - C3 = $10.00 - C4 = $11.20 - C5 = $16.00 - C6 = $22.00 - C61 = $30.40**Question:**- Refer to Exhibit HW2.4. If output is Q1, market price is about: - Options: $2.30, $2.00, $2.20, $2.10This graph visually assists in understanding the relationship between total revenue and total costs as output changes, important for assessing a firm's profitability in a competitive market.

Given: Value of Q1 is 2. Value of C1 is $4. Value of TFC= $1.60

Erhibit HW2.4: Total Revenues and Total Costs for a Representative Competitive Firm Money TC C61 TR C6 E DI Given Q1 Q2=5 Q3=8 Q4= 11 %3D %3D C5 -- TFC S1.60 %3D S4.00 %D C2 S8.20 C4 C3 = S10.00 s11.20 C5 = |S16.00 C3 C4 iB C2 C1 Có S22.00 %3D TFC HA C61 = S30.40 Q1 Q2 Q3 Q4 Refer to Exhibit HW2.4. If output is Q1, market price is about O$2.30 O$2.00 O$2.20 $2.10

Erhibit HW2.4: Total Revenues and Total Costs for a Representative Competitive Firm Money TC C61 TR C6 E DI Given Q1 Q2=5 Q3=8 Q4= 11 %3D %3D C5 -- TFC S1.60 %3D S4.00 %D C2 S8.20 C4 C3 = S10.00 s11.20 C5 = |S16.00 C3 C4 iB C2 C1 Có S22.00 %3D TFC HA C61 = S30.40 Q1 Q2 Q3 Q4 Refer to Exhibit HW2.4. If output is Q1, market price is about O$2.30 O$2.00 O$2.20 $2.10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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