Refer to Figure B. The firm's marginal cost curve above _______ is its short -run supply curve a) $4b)$12c)$26d)$8 Figure BBelow is a graph with representative cost curves for a firm in a competitive market.PRICE2222222240ATC3632AVC28262420161284+MC12QUANTITY345

Concept: The short-run supply curve of a firm is the portion of its marginal cost (MC) curve that…

Answered: Figure B Below is a graph with…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that Jasmine is a typical firm that produces and sells T-shirts in a perfectly competitive constant- cost industry. The market is currently in long-run equilibrium. The market price is $5, and Jasmine's marginal cost at each level of output is listed in the table below. Quantity of Output 0 1 2 3 4 5 6 Marginal Cost 0 2 3 4 5 6 7 (a) What is Jasmine's pront-imamizing quantity of output? Explain. (b) Draw a correctly labeled graph for Jasmine, and show Jasmine's total revenue at the profit-maximizing quantity, shaded completely. (c) Now assume consumer demand for T-shirts increases. What will happen to the number of firms in the market in the long run? Explain.
Consider a perfectly competitive market for a product Y and assume that the market is at the long run equilibrium. (a) Examine the cost structure and demand faced by an individual Y producer. Relate that producer to the Y market at the perfectly competitive long run equilibrium. Support with market and individual producer diagrams. (b) Analyze the effects of the following news on price and quantity in the Y market as well as the profit and output of the individual Y producer “It is discovered that consuming Y is beneficial to health and can prolong your life”. Explain both the short run and the long run equilibria and support your answers with suitable diagrams. Hi, I have the answer sheet but may I request for a more detailed explanation for part b? Thank you.
a) What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?
Please write to text formet answer but don't copy paste the answer
MC АТС $25.00 AVC $19.50 -- $15.00 $12.50 - - 30 40 50 60 Output (Q) For the firm shown in the diagram above, its Long Run Supply Curve is its curve for any price greater than ATC; $19.50 MC; $12.50 AVC; $12.50 MC; $19.50
A foodstuff firm has variable cost function: VC = 2q(q+1). The foodstuff market is considered as perfect competition market with many firms that are doing business. a. Find the short run supply curve of the firm? b. The firm is break even at total revenue of $702. Calculate the firm's price and output at this break-even point? c. What is the firm's fixed cost? d. Calculate the price at which firm will shut-down its business?
E4 A Firm ís short-run total cost function is: T C = 4q2 - 2q + 7 The Firm sells in a perfectly competitive market and the ruling price is p = 50 (a) Find the output level that maximizes profits. Show you have a maximum. (b) Find the output level that minimizes average cost, AC. Show you have a minimum. (c) Sketch the graphs of total cost and total revenue with the same axes (d) Sketch the graph of the profit function.
At P4, this firm will: A graphThe graph shows the supply curves for a firm. Multiple Choice produce 10 units and earn only a normal profit. produce 30 units and earn only a normal profit. shut down in the short run. produce 30 units and realize a loss. MC
Figure: Cost Curves for Corn Producers Price, cost of bushel $30 26 MC 22 18 ATC AVC 14 10 1 3 4 7 Quantity of corn (bushels) Reference: Ref 12-3 (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce of corn and earn an ec omic equal to 2 bushels; profit; $0 2 bushels; loss; just more than $80 per bushel 3 bushels; profit; loss, -$15 4 bushels; profit; just less than $80 per bushel
Could I have help with c and d (and making sure the first part is correct) ?
If the market price of a product is $10 that lie between the minimum average variable cost $8 (AVC) and minimum average total cost $15 (ATC) of a firm, that firm will:___________ a) always shut down. b) always continue to produce.c) produce in the short run but shut down in the long run. d) produce in the long run but shut down in the short run. e) make positive economic profits.
What relationship determines whether or not a firm should stay open in the short run? A) The price of the goods it sells and its average total cost. B) The price of the goods it sells and its average variable cost. C) The marginal revenue of the goods it sells and its average total cost. D) The marginal revenue of the goods it sells and its average variable cost.

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Figure B Below is a graph with representative cost curves for a firm in a competitive market. PRICE 22222222 40 ATC 36 32 AVC 28 26 24 20 16 12 8 4 + MC 1 2 QUANTITY 3 4 5