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.
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
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.
2. Consider a market with 90 firms, each firm has a short-run total cost function as follows: TC(q) = 5q2, and a marginal cost function: MC(q) = 10q. Market demand is given by equation Qd(p) = 200 - p. a. What is the fixed cost? Solve the average variable cost function in the short-run. b. What is the supply function of each firm? c. Solve for the short-run equilibrium outcome: P*, Q* and q*. d. What is one firm's economic profit in this market? e. Consider a different market structure, where there is only one firm, interpreted as a monopolist, and then critically discuss the impact on equilibrium price and quantity. Discuss total surplus for these two types of market structures.
PRICE (Cents per bushel) COST (Cents per bushel) 100 90 80 70 60 50 ATC 40 30 20 10 AVC MC 0 5 10 15 20 25 30 35 40 45 50 OUTPUT (Thousands of bushels) The following graph shows the market demand for wheat. 1. Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at the lowest point of the supply curve and another orange point at the highest point of the supply curve. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) 2. Place the black point (plus symbol) on the graph to indicate the short-run equilibrium price and quantity in this market. (Note: Dashed drop lines will automatically extend to both axes.) 100 90 80 60 30 20 2 2 2 2 8 8 2 2 2 2 ° 0 Demand 350 700 1050 1400 1750…
You are a business manager working for a firm in a purely competitive market and you just hired a summer intern who does not understand how to derive the firms’ short run supply curve from the firms’ marginal cost curve. a)Please explain to the intern how the short run supply curve is derived from the firm’s marginal cost curve. Be specific. b.) Please explain to the intern the characteristics of long run equilibrium of a purely competitive firm and how operating in a purely competitive market might impact the decision-making of the firm. Please include the implications of long-run equilibrium for productive and allocative efficiency. Please include the 3 assumptions, as well as the implications for economic profit, productive efficiency and allocative efficiency.
7. Short-run supply and long-run equilibrium Consider the perfectly competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. COSTS (Dollars per kilogram) 80 72 64 56 48 40 32 16 8 0 0 4 MC 8 ATC AVC □ 12 16 20 24 28 32 QUANTITY (Thousands of kilograms) 36 The following diagram shows the market demand for copper. □ 40 ? Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) to plot the short-run industry…

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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