Figure A Competitive Firm1.2 MC ATC Given Pl =$7.00 P2 = $8.50 P3 =$9.20 Q1=100.00 AVC P3 P2 P1 MR C Quantity Q1 Refer to Figure A Competitive Firm1.2. At an output level of Q1, the average fixed cost is about O $0.70 O No answer text provided. O No answer text provided. O $0.80 %24

Figure A Competitive Firm1.2 MC ATC Given Pl =$7.00 P2 = $8.50 P3 =$9.20 Q1=100.00 AVC P3 P2 P1 MR C Quantity Q1 Refer to Figure A Competitive Firm1.2. At an output level of Q1, the average fixed cost is about O $0.70 O No answer text provided. O No answer text provided. O $0.80 %24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the figure to select all the correct statements. $ A B Q1 Q2 Q3 Q4 Q5 Q6 OA. The distance between Curve A and Curve B shows the average profit of the firm at any given quantity of output. B. Curve A shows the total cost function of the firm. OC. The slope of the tangent line for Curve B when the quantity is Q2 is the marginal profit of the firm when output is Q2. OD. Curve B shows the total cost function of the firm. O E. The distance between Curve B and X-axis is the firm's total revenue at any given quantity of output.
The optimal output rule for a perfectly competitive firm is to produce that quantity where A. P = MC in the long run, but in the short run to produce that quantity where MC = %3D ATC. O B. MC = ATC in the short run. C. P = MC no matter what the time period, provided that price is greater than average variable cost. D. P = MC no matter what the time period, provided that price is greater than %3D average total cost.
Solve it correctly
3
Refer to the diagram to the right. Suppose the firm is currently producing Q, units. What happens if it expands output to Q, units? TC TR O A. It incurs a loss. O B. It will be moving toward its profit maximizing output. Oc. It makes less profit. O D. Its profit increases by the size of the vertical distance df. a 1,000 Qo Q, Q2 Q3 Quantity d...... . ....... Costs and revenue
Price (S) AB UD A) $(60-C) × 3 Quantity B) $(60-D) x 2 OC) $(60-B) × 5 OD) $(60-B) × 4 O E) $(60 - A) × 5 MC ATC Refer to the figure above, which indicates the short-run cost data for a typical firm in a perfectly competitive industry. If the price faced by a perfectly competitive firm is equal to $60, then this firm will earn profits of......if it maximizes profits. p = $60 AVC
Suppose a perfectly competitive firm's produces 80 units at a minimum average variable cost of $2.5. If the price is $3 and the firm's marginal cost is $3, the firm should? Select one: O a continue to produce 80 O b. continue to operate, but produce more than 80 O c. shut down O d. continue to produce, but produce less than 80
A competitive firm produces a product using the function f(x1, x2) = 8xx. The factor prices are p1 = $2.50 and p2 = $4 and 1/21/2 the firm can purchase as much of either factor at the given prices. What is the firm's marginal cost? O a. $1.74 O b. $1.07 O . $2.32 O d. None of the above
Figure A Competitive Firm1.2 MC ATC Given P1 =$7.00 P2 = S8.50 P3 = SS.80 Ql = 120.00 AVC A P3 P2 P1 MR C Quantity Q1 Refer to Figure A Competitive Firm1.2. At an output level of Q1, the average fixed cost is about O $0.50 O $0.30 O No answer text provided. No answer text provided. %24
Exhibit 21-9 Cost MC, ATC₂ MC1 ATC1 MC 3 PI ATC 3 Quantity of Output Refer to Exhibit 21-9. Let MC 1 and ATC 1 represent the initial cost curves of a peanut butter producer. In which of the following cases is it most likely that the firm's curves will shift leftward to MC 2 and ATC 2? O a. The market price of peanuts decreases. O b. The market price of peanuts increases. O c. The government lowers taxes paid by peanut butter producers. O d. The market price of peanuts remains constant.
MC 10 AC AVC 8.5-it 81-ia.... 351 50160 40 55 510 Q The above figure shows the cost curves for a typical firm in a competitive market. If p = 10, then O A. the firm will maximize its profit by producing 60 units. O B. producing 5 or 60 units will yield equal profits. the firm will maximize its profit by producing 5 units. O D. Not enough information. étv 20 ... MacBook Air DII 80 F4 F5 F6 F7 F8 F1 F2 F3 @ # $ % & 2 3 4 5 6 8 9 W E U S D F G H K V N M B
Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $600 and its total variable cost is $400. If the price of the product is $8 per unit, the firm should produce O less than 100 units of output. O The amount is impossible to determine from the information given. O 100 units of output. O more than 100 units of output.