SaGraph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000):Revenues, costs1009080706050403020100100200300400500600MC700Quantity per period800ACAVC006,1000Prev1 of 133.0Next > NOn the basis of above graph complete the below table. For columns 2, 3, 4, and 5 you need answer only yes or no.4(1)Price($)75SS255YesYesNoNo(2)ISPAC?(3)Can the firmmake a profit?YesM YesN NoM NoYes✔YesYesNo(4)ISP> AVC?(5)Will thefirm produce?✓YesYes✓YesNoPrevW(6)(7)WhatWhat isaverageprofit atthiswill itproduce? quantity ($)? profit?What isitsquantitytotal500AWAY1 of 13SAMSUNG(8)Next >

If P > AC, it implies that the firm earns positive profits. If P > AVC, it implies that 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 MC 700 Quantity per period AC AVC 800 900 >1000

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 MC 700 Quantity per period AC AVC 800 900 >1000

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

Sa
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
MC
700
Quantity per period
800
AC
AVC
006,
1000
Prev
1 of 13
3.0
Next >

N
On the basis of above graph complete the below table. For columns 2, 3, 4, and 5 you need answer only yes or no.
4
(1)
Price
($)
75
SS
25
5
Yes
Yes
No
No
(2)
IS
PAC?
(3)
Can the firm
make a profit?
Yes
M Yes
N No
M No
Yes
✔Yes
Yes
No
(4)
IS
P> AVC?
(5)
Will the
firm produce?
✓Yes
Yes
✓Yes
No
Prev
W
(6)
(7)
What
What is
average
profit at
this
will it
produce? quantity ($)? profit?
What is
its
quantity
total
500
AWAY
1 of 13
SAMSUNG
(8)
Next >

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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
Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 AFC Qutity Which best describes the firms short run capacity? MC = AFC MC = AVC AVC = ATC AVC = AFC MC = AC Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 10 AFC Qurtity Which price would best describe the firm is making an economic profit? 15 10 8 5 Using the following graph of the cost curves for a firm. Complete the statement below. yice AC AVC 15 10 5 AFC Qurtity Which price would best describe the break even point for this firm? O 15 12.5 10 16 Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 10 AFC Quantity Which price would best describe the shut down condition for this firm? 15 12.5 16 10 10 5 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)
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Lisa’s Lawn Company (LLC) is a lawn-mowing business in a perfectly competitive market for lawn-mowing services. The following table sets out Lisa’s costs. Quantity (Lawns per hour Total Cost (dollars per lawn) 0 $30 1 40 2 55 3 75 4 100 5 130 6 165 If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow? If the market price is $30 per lawn, what is Lisa’s profit in the short run? If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?
Hand written solutions are strictly not acceptable.
Notes for graph: MC is marginal cost, MR is marginal revenue, ATC is average total cost, AVC is average variable cost and D is the demand curve. To maximize the profit, how many units should the firm produce? At what price? Based on your answer, what is the total revenue? Total costs? Total profit? Total fixed cost? Will you operate this firm in the short run? Long run? Briefly explain.