**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

See similar textbooks

Similar questions

WS3 Assignments Chapter 10 Problem Set Chapter 10 Problem Set Question According to the prisoner's dilemma, which of the following are true about oligopolies? Please select two correct answers. Select all that apply: U If oligopolists cooperate with one another, any firm that betrays another will be forced to exit the market. If oligopolists agree to cooperate, each oligopolist must worry about being betrayed. If oligopolists agree to cooperate, more firms can enter the market. Even when oligopolists agree to cooperate, they are self-interested and want to pursue higher profit opportunities. This could result in firms betraying one another.
With millions of passengers selecting air travel to reach their intended destinations, CaribbeanInternational Airlines has cornered the market by providing competitive fares, consistent customerservice and excellent returns for investors. The Chief Executive Officer has stated that thecompany wants to ensure that Caribbean nationals in the diaspora have easy and affordable accessto an airline with exceptional customer service. This airline caters to middle to high income earnerswho like to travel for adventure or relaxation. Priding itself as an affordable carrier with bargainfares, its mission is “Making air travel hassle free, reliable, economical and comfortable, we striveto transport our passengers safely to their chosen destinations.” The company has employees frommainly the Caribbean and North America who understand the needs and demands of their clientele.The company intends to expand travel services from various Caribbean destinations and Miami toother locations like New York,…
Comatically save as you proceed through the test. Question 16 Please refer to the graph. In order to maximize profit this firm would charge what price? PAD MC B C E P2 A P₁ MR D 0 Q₁ Q₂ Q3 Quantity Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a P4 C P3 P2 d P1 ✓ Saved Search 7& * 4+ 144 σ с f10 114 Po f11 144 口 f12 ins prt sc delete ho = ← backspace
==>Please correct and incorrect answer explanation Note:- Please don't simply copy and paste content from other AI tools or bots, or else I may have to downvote your actions. Do not provide the handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.
O Getting carried away with overly aggressive price-cutting to win sales and market share away from rival firms--higher unit sales and market shares do not automatically translate into higher total profits
21
6. Consider a duopoly in which inverse demand is given by P= 100-Q, where Pis the price and Q is aggregate output. The marginal cost of each firm is initially equal to 55 and there are no fixed costs. The firms compete by simultaneously setting quantities. (a) What is the equilibrium quantity of each firm, the equilibrium price and the profit of each firm? Now assume that one of the firms, firm 1, develops a new technology that reduces its own marginal cost to 25. (b) If firm 1 keeps this innovation for itself (so that the marginal cost of firm 2 is still 55), what will be the new equilibrium levels of output, price and profits of the two firms? What is the consumer surplus in the market? Do consumers benefit from the innovation?