Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000):Revenues, costs1009080706050403020100100200300400500600700Quantity per periodMC800ACAVC9001000 O10(1)Price($)755525100SYes200YesNoNo300On the basis of above graph complete the below table. For columns 2, 3, 4, and 5 you need answer only yes or no.(2)400500IsP > AC?600Quantity per period700(3)Can the firmmake a profit?YesYesNov No800VYesYes✓YesNo9001000(4)IsP> AVC?Will thefirm produce?Yes✓Yes(5)v YesNoVO SearchVVV(6)(7)WhatquantityI will itWhat isaverageprofit atthisproduce? quantity ($) ? profit?What isitstotal500Prev 1 of 13H***Next >(8)

In a market with perfect competition, the market determines the price. The company determines the…

Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000): Revenues, costs 100 90 80 70 60 50 40 30 20 10 0 100 200 300 400 500 600 700 Quantity per period MC 800 AC AVC 900 >1000 N

Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000): Revenues, costs 100 90 80 70 60 50 40 30 20 10 0 100 200 300 400 500 600 700 Quantity per period MC 800 AC AVC 900 >1000 N

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000):
Revenues, costs
100
90
80
70
60
50
40
30
20
10
0
100
200
300
400
500
600
700
Quantity per period
MC
800
AC
AVC
900
1000

O
10
(1)
Price
($)
75
55
25
100
S
Yes
200
Yes
No
No
300
On the basis of above graph complete the below table. For columns 2, 3, 4, and 5 you need answer only yes or no.
(2)
400
500
Is
P > AC?
600
Quantity per period
700
(3)
Can the firm
make a profit?
Yes
Yes
No
v No
800
V
Yes
Yes
✓Yes
No
900
1000
(4)
Is
P> AVC?
Will the
firm produce?
Yes
✓Yes
(5)
v Yes
No
V
O Search
V
V
V
(6)
(7)
What
quantity
I will it
What is
average
profit at
this
produce? quantity ($) ? profit?
What is
its
total
500
Prev 1 of 13
H
***
Next >
(8)

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