For this question, refer to the figure below, which shows the average total cost curve of a firm. As done in class, you may assume that the ATC includes both variable costs and fixed costs but does not include sunk costs. P. 1. P, Pe 2. ATC(Q) 3. Q. Q, Qc Which of the following statements is correct? (a) In a perfectly competitive market, we could observe a profit maximizing firm choosing to produce Qa and charging price PA. (b) In a perfectly competitive market, we could observe a profit maximizing firm choosing to produce Qu and charging price Pa. (c) If we observe a firm producing at Qu and charging price Ps, we can be certain that the market is perfectly competitive. (d) If a monopolist faces a competitive fringe, he will never choose to produce Qa and charge price PA. (e) If we observe a firm producing at Qc and charging priocœ Pe, we would need more information to determine if the market is perfectly competitive.

For this question, refer to the figure below, which shows the average total cost curve of a firm. As done in class, you may assume that the ATC includes both variable costs and fixed costs but does not include sunk costs. P. 1. P, Pe 2. ATC(Q) 3. Q. Q, Qc Which of the following statements is correct? (a) In a perfectly competitive market, we could observe a profit maximizing firm choosing to produce Qa and charging price PA. (b) In a perfectly competitive market, we could observe a profit maximizing firm choosing to produce Qu and charging price Pa. (c) If we observe a firm producing at Qu and charging price Ps, we can be certain that the market is perfectly competitive. (d) If a monopolist faces a competitive fringe, he will never choose to produce Qa and charge price PA. (e) If we observe a firm producing at Qc and charging priocœ Pe, we would need more information to determine if the market is perfectly competitive.

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

The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 2$ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$
Question 2 The market for hand-made bar soaps in Vancouver is perfectly competitive. The marginal cost function for each (identical) firm is given by MC = 2QS + 4. Also suppose the short run cost functions are the same as the long run cost functions. If the market price P is $10. What is the individual firm's MC? a) 8 b)14 c)10 d)12 Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
If a perfectly competitive firm which produces two commodities, has the cost function C = 2Q² + 2Q? where Q1 and Q2 denote the production level of commodity 1 and commodity 2 respectively. (Note: There are 3 questions in the test regarding the information given above) If the prices of commodities are P and P2 respectively, find the optimal levels of output that the firm should produce to maximize its profit O a. Q 1/4P and Q b. Q; 1/6P and Q = 1/4P2 Oc. Q; =1/6P and Q; = 1/6P2 O d. Qi 1/4P, and Q = 1/6P, ; = 1/4P,
Just the bolded one please Using the above graph, The minimum level of output this firm would produce is 12 units. The firm's total fixed costs is $56. (Do NOT enter the '$' in your response; enter only the whole dollar amount, NOT cents.) The profit maximizing output level for this firm is 14 units. The economic profit that this firm is earning is $Blank 4. (Do NOT enter the '$' in your response; enter only the whole dollar amount, NOT cents.) If this profit level is typical of the industry that the firm is operating in, what do you expect to happen? Blank 5
20) - Google Chrome "mod/quiz/attempt.php?attempt%3=1579003&cmid%3812962&page%3D2 em (Academic 20- MC ATC AVC 16 4. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have th same cost curves and the price equals $16 per unit Select one: O a. over time, the price will fall as new firms enter the market. O b. over time, firms will leave this market. O c. the market is in its long-run equilibrium. O d. the firm is making zero economic profit. o search hp Price and cost (dollars per unit)
Dear expert hand written not allowed.
I need solution of a,b,c
Answer options: 0, 5, 7, 10, 15, 20, 25, Other
pshotic 166& 5. Profit maximization and shutting down in the short run Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. 100 90 80 ATC 70 60 40 30 AVC 20 10 MC 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of ovens) Σ 50 PRICE (Dollars per oven)
choose the right answer: a) q=4, profit=4 b) q=6, profit=2 c) q=3, profit=6 d) q=2,profit=4.
If the restaurant now sells 75 bowls of Super Chasu Ramen at $20.00 per bowl, are they still able to make profit or have a loss? Why or why not? Explain.
Consider a kettle firm A in a perfectly competitive market. Table 1 shows the quantity produced per hour (Q) and the total cost (TC) in the short run. Quantity 0 12345C70 2 6 8 Total cost 17 30 40 55 75 100 130 165 210 Fixed cost 17 17 17 17 17 17 17 17