For any given price, a firm in a competitive market will maximize profit by selecting the level of output where price intersects which curve? A. marginal-revenue curve B. average-total-cost curve C. marginal-cost curve D. average-variable-cost curve
Q: 2) Refer to the attached Figure 18. What would likely cause an increase in market supply from…
A: A perfectly competitive firm is a price taker, which means it takes the price determined by the…
Q: 9. Problems and Applications Q9 The market for apple pies in the city of Ectenia is competitive and…
A: The perfectly competitive market is represented by multiple buyers and multiple sellers in the…
Q: Calculate Ana's marginal revenue and marginal cost for the first seven teddy bears she produces, and…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: Using the following table, for each price level, calculate the optimal quantity of units for the…
A: Types of costs: A firm's total cost can be divided into two main categories- Fixed cost: The cost…
Q: onsider the general impact of the war in Ukraine on the market for wheat. The April 30, 2022 issue…
A: "As per our policy, we can provide answers to the first three sub-parts. Kindly raise the question…
Q: You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One…
A: Perfectly competitive market refers to a market scenario in which there are large number of buyers…
Q: Using the following table, for each price level, calculate the optimal quantity of units for the…
A: The shutdown point is a concept in economics that refers to the level of operations at which a firm…
Q: In the short run, at a market price of $15 per sweater, this firm will choose to produce On the…
A: Perfect competition: A firm in the competitive market is a price taker because it has large number…
Q: 19. If the price of corn is $6.50 a bushel and the Average Total Cost of producing a bushel is $5.60…
A: The price of corn is $6.50 The average total cost is $5.60 100 bushels of corn are produced.…
Q: A market is in long-run equilibrium and firms in this market have identical cost structures. Suppose…
A: Long Run Equilibrium is defined as the equilibrium that is achieved by a firm when it decides to…
Q: In the short run, given a market price equal to $15 per romper, the firm should produce a daily…
A: A market with perfect competition is an idealized structure where a large number of sellers and…
Q: 5. Profit maximization and shutting down in the short run Suppose that the market for black leather…
A: In Economics, Costs are usually categorized according to their relationship with the level of output…
Q: a. Demonstrate what happens in the short run on both graphs when a new medical study shows soy beans…
A: (a) The increase in demand for Soybeans shifts the demand curve to rightward (D2). It intersects…
Q: 4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a…
A: In a market, often there are many sellers and as many buyers. In this kind of market, many new firms…
Q: Suppose you are the production manager of a small perfectly competitive firm making a single…
A: Profit maximizing quantity for the firm is where the marginal revenue curve intersects the marginal…
Q: 4. The Diversified Vegetable Company grows two crops, tomatoes and zucchini. The firm is a…
A: QUESTION AThe profit-maximizing level of production is approximately 1.76 bushels of tomatoes and…
Q: Use the following data to fill out the table; assume the market is competitive and the price is $30.…
A: In economics, the marginal cost is the change in total production expenses that comes from making or…
Q: Assume a perfectly competitive market. Draw the average total cost, average variable cost, marginal…
A: In perfect competition , The profit maximizing quantity is where P = MC. P = MR in the perfect…
Q: 2. Understanding the role of fixed cost in the Consider an airline's decision about whether or not…
A: Cost refers to the sum of money that the production or consumption of a certain good or service…
Q: Restaurant Pricing. Consider a restaurant that charges $10 for all you can eat and has 25 customers…
A: The importance of microeconomics may be observed in the fact that it provides a framework for profit…
Q: 100 90 80 Profit or Loss 70 60 50 40 АТС 20 MC AVC 10 10 20 30 40 50 60 70 80 90 100 QUANTITY…
A: In the short run at the market price $45/watch then the firm will choose to produce 45 unit of…
Q: In the short run, given a market price equal to $15 per jumpsuit, the firm should produce a daily…
A: Perfect competitive market:In this market, there are large numbers of buyers and sellers. They sell…
Q: 6. Deriving the short-run supply curve Consider the competitive market for sports jackets. The…
A: A competitive market is one in which numerous producers compete with one another in the hopes of…
Q: For each price in the following table, calculate the firm's optimal quantity of units produced and…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the…
A: Given: Short-run market price per sweater=$ 45
Q: Buppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of…
A: Given: C=200+2q2MC=4qFixed Cost=$200 The profit maximizing condition in competitive market is P=MC…
Q: 1. If a market is characterized by economies of scale, then which of the following is true: a. this…
A: As a product is put into manufacturing process, cost takes place and business follow ups. Business…
Q: 4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a…
A: In perfect competition , A firm will always produce where Price is equal to marginal cost. This…
Q: In the short run, at a market price of $20 per wind chime, this firm will choose to produce wind…
A: Answer: In the short run, a firm produces that level of output where the price (marginal revenue) is…
Q: 1. Profit maximization using total cost and total revenue curves Suppose Juanita runs a small…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: If I am earning positive economic profit then I made the decision that is a. the best by all…
A: Economic profit = Total revenue - Economic cost. Economic cost = Explicit cost + Implicit cost.…
Q: 1) Use the graph to answer the question below. The quantity is measured in thousands of units.…
A: As per the guidelines answer is given to the first question. (1) As per the diagram given in…
Q: 4. The Diversified Vegetable Company grows two crops, tomatoes and zucchini. The firm is a…
A: The objective of this question is to find the profit maximizing level of production of tomatoes and…
Q: Eazy-E is wondering why his chicken finger shop is losing money in the short run. He hires you to…
A: A market form characterized by a large number of buyers and sellers who are engaged in the trade of…
Q: The figure to the left shows the isoprofit curves and demand curve for Cheerios breakfast cereal.…
A: a) A rival company producing a similar brand slashes its prices.b) The cost of producing Apple…
Q: 6. A firm's demand function for a certain good is given by P-100ee. Its total cost function is…
A: Answer: Given, Demand function: P=100e-0.1Q Total cost function: TC=100e-0.1Q+50 Calculation: A firm…
Q: In the short run, given a market price equal to $15 per romper, the firm should produce a daily…
A: General Equilibrium Theory is a macroeconomic theory that makes sense of how supply and demand in an…
Q: 70) Are the decisions to shut down and exit a market short-run or long-run decisions? A. The…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 9. Profit maximization in the cost -curve diagram The following graph plots daily cost curves for a…
A: Price taking, or accepting the price determined by market forces at the nexus of supply and demand,…
Q: 3. Profit maximization using total cost and total revenue curves Suppose Sam runs a small business…
A: This can be defined as a concept that shows the cost incurred in the production process of a…
Q: 5. Profit maximization and shutting down in the short run Suppose that the market for wind…
A: The optimal quantity of an output that produces by the firm is at where the price is equal to…
Q: 100 00 90 00 80 COSTS (Dollars) 70 + 30 20 10 28° 60 50 40 ATC AVC MC 05 10 15 20 25 30 35 40…
A: The perfectly competitive market is represented by multiple buyers and sellers in the market.…
Q: A business's marginal cost has a minimum value of $3; its average variable cost has a minimum value…
A: The firm can earn the positive profit in the short run, but in the long run, firm does not earn…
Q: Principles of Microeconomics Name: Homework #3 Prof. R. Harris DUE: Wednesday, April 17, 2019 at the…
A: Let us first understand what the following costs mean:Total Cost (TC): Total costs are the total…
Q: PRICE (Dollars per overalls) 2 O O B 8 10 S O O 0 MC ATC AVC • B 10 12 14 16 18 QUANTITY (Thousands…
A: Profit maximization is the process by which businesses ensure that the best output and pricing…
Q: Examine the behavior of perfect competitive markets. How are prices determined in competitive…
A: The markets are the place where the buyers of various goods, and services tend to meet, and interact…
Q: 13. Firms in Competitive Markets The market for fertilizer is perfectly competitive. Firms in the…
A: The true statement is - The price of fertilizer must be less than average total cost. If firms in…
Q: 4. Profit maximization in the cost-curve diagram Suppose that the market for candles is a…
A: Competitive Market: The competitive market refers to the market where a large number of firms exist,…
I need help with econ multiple hw questions asap!
66)For any given price, a firm in a competitive market will maximize profit by selecting the level of output where price intersects which curve?
- A. marginal-revenue curve
- B. average-total-cost curve
- C. marginal-cost curve
- D. average-variable-cost curve
65)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- 3. Profit maximization in the cost-curve diagram Suppose that the market for frying pans is a competitive market. The following graph shows the daily cost curves of a firm operating in this market Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Profit or Loss 80 70 ATC 60 50 40 30 AVC 20 MC 10 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pans per day) In the short run, at a market price of $50 per pan, this firm will choose to produce 37,500 pans per day. PRICE (Dollars perpan)4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for motor scooters. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per scooter) 100 90 80 70 60 50 40 40 30 ATC 20 MC AVC 10 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of scooters per day) Profit or Loss ? In the short run, given a market price equal to $45 per scooter, the firm should produce a daily quantity of 45,000 scooters. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run of $ thousand per day for the firm.4. Profit maximization using total cost and total revenue curves Suppose Carlos runs a small business that manufactures shirts. Assume that the market for shirts is a price-taker market, and the market price is $10 per shirt. The following graph shows Carlos's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven shirts that Carlos produces, including zero shirts. O REVENUE (Dollars) 125 COSTS AND REVENUE (Dollars per shirt) 100 75 50 25 -25 -50 30 20 15 0 Total Revenue 0 et = Profit n A A O 0 1 0 0 2 Calculate Carlos's marginal revenue and marginal cost for the first seven shirts he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. (?) 1 3 4 5 QUANTITY (Shirts) 2 3 0 5 QUANTITY (Shirts) 6 4 Total Cost 0 6 O 7 8 7 8 -0- (?) Marginal Revenue Marginal Cost Carlos's profit is…
- 9. Problems and Applications Q9 The market for apple pies in the city of Ectenia is competitive and has the following demand schedule: Each producer in the market has a fixed cost of $6 and the following marginal cost: Quantity Marginal Cost (Dollars) 1 1 2 3 4 5 6 Complete the following table by computing the total cost and average total cost for each quantity produced. Quantity Total Cost Average Total Cost (Ples) (Dollars) (Dollars) 1 2 3 4 3 8 10 12 14 The price of a pie is now $11. At a price of $11, making a profit of O True O Fal pies are sold in the market. Each producer makes True or False: The market is in long-run equilibrium. Suppose that in the long run there is free entry and exit. In the long run, each producer earns a profit of each producer makes pies, so there are The market price is producers operating. pies, so there are At this price, producers in this market, each pies are sold in this market, andSuppose that the market for dress shirts is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. (?) 50 45 Profit or Loss 40 35 30 АТС 25 20 15 10 AVC MC 4 8 12 16 20 24 28 32 36 40 QUANTITY OF OUTPUT (Shirts) PRICE AND COST (Dollars per shirt)7. You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following data at his present level of production: Output = 2000 pounds, market price = $5.00, total cost =$8000, fixed cost=$2000, marginal cost=$5. The minimum of AVC occurs at {1000 pounds at $2} and the minimum of ATC at {1500 pounds at $3.5}. Please help Jack with the following questions based on the above figures: a. Draw a graph for the raw cotton market and a graph for Jack’s farm current situation that includes MC, ATC, and AVC, labeling all relevant points on axes with numerical values. Is Jack maximizing the profit (minimizing the loss)? Why or why not? Label the total profit/loss area. b. Suppose more farmers enter the raw cotton market until the market price is $3.00 per pound. On the same graphs, show the effect of this change in the market place. Would you like to suggest Jack leaving the market in the short run? Explain your answe
- 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 bushel3. Profit maximization using total cost and total revenue curves Suppose Madison operates a handicraft pop-up retail shop that sells phone cases. Assume a perfectly competitive market structure for phone cases with a market price equal to $25 per phone case. The following graph shows Madison's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for phone cases for quantities zero through seven (including zero and seven) that Madison produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 50 0 * U 0 1 O 2 n D 0 3 QUANTITY (Phone cases) ■ Total Cost O Total Revenue Profit Calculate Madison's marginal revenue and marginal cost for the first seven phone cases they produce, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity.8. Short-run and long run effects of a shift in demand Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 350 million cans per year. Suppose that WebMD daims that a protein found in tuna will increase your expected lifespan by 2 years. WebMD's claim will cause consumers to demand more PRICE (Dollars per cani producing more tuna and earning positive profit Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of WebMD's claim. ? 0 tuna at every price. In the short run, firms will respond by Supply Demand 70 140 210 200 350 420 400 560 630 700 QUANTITY (Millions of cans) Demand -0 Supply
- 4. Profit maximization in the cost-curve diagram Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point.1. The market for manicures and other nail treatments is very competitive. How would the following developments affect the number of nail treatments that a typical nail salon wants to supply in the short run? a. Heightened concern about their appearance causes people to want more manicures at a given price. b. The government requires all nail salons to pay a new yearly licensing fee to operate. c. Worse job prospects elsewhere in the economy cause more people to want to become manicurists, causing the wages of manicurists to fall.3. Profit maximization using total cost and total revenue curves Suppose Latasha runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Latasha's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Latasha produces.
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)