Good Zis produced and sold in a competitive industry, and long-run industry supply is characterized by constant costs. The figure below shows a typical long-run average cost curve (LAC) for each of the firms producing good Z. LAC reaches its minimum unit cost of $12 and 1,000 units of output (point M. Suppose the demand for good Zis Qg 52,000 -1,000P. LAC M 12.00 Firm's output (q) 1,000 In long-run competitive equilibrium, if demand for good Z decreases, then LMC rises, stays the same), and economic profit (falls, rises, stays the same). LAC (talls, (falls, rises, stays the same). in iong-run competitive equionum, it oemana tor goo0 z oecreases, tnen LMU rises, stays the same), and economic profit (rais, nses, stays tne samej, LAL (rars, (falls, rises, stays the same). Multiple Choice remains the same, remains the same; remains the same remains the same, falls fals fals, fals, falls remains the same; falls remains the same. fals, falls remains the same Price and cost (dollars)

Good Zis produced and sold in a competitive industry, and long-run industry supply is characterized by constant costs. The figure below shows a typical long-run average cost curve (LAC) for each of the firms producing good Z. LAC reaches its minimum unit cost of $12 and 1,000 units of output (point M. Suppose the demand for good Zis Qg 52,000 -1,000P. LAC M 12.00 Firm's output (q) 1,000 In long-run competitive equilibrium, if demand for good Z decreases, then LMC rises, stays the same), and economic profit (falls, rises, stays the same). LAC (talls, (falls, rises, stays the same). in iong-run competitive equionum, it oemana tor goo0 z oecreases, tnen LMU rises, stays the same), and economic profit (rais, nses, stays tne samej, LAL (rars, (falls, rises, stays the same). Multiple Choice remains the same, remains the same; remains the same remains the same, falls fals fals, fals, falls remains the same; falls remains the same. fals, falls remains the same Price and cost (dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a competitive firm with total costs given by T C(q) = 100 + 10q + q^2. The firm faces a market price p = 50. (a) Graph the AT C, AV C, MC, and MR curves in a single graph, and indicate the profit maximizing level of output. If there are profits, shade the region corresponding to profit and label it. (b) If fixed costs increase from 100 to 500, what happens to the profit maximizing level of output, T R, T C, and π? (c) If fixed costs increase from 100 to 500, should the firm continue to operate in the short-run? What about the long-run?
I need urgently solutions of A,B,C
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