Here is information pertaining to a firm operating in a perfectly competitive marke Price $10.00 Output Total Revenue (TR) $8,000 Total Cost (TC) Total Fixed Cost (TFC) $2,800 Total Variable Cost (TVC) Average Total Cost (ATC) $12.00 Average Variable Cost (AVC) Minimum Marginal Cost (MC) Based off of the provided information answer the following 3 questions: What is the firm's average variable cost (AVC)? What is the firm's marginal cost (MC Should the firm decrease production or shut down in the short run? O $8.5; 8.5; shut down $8.5; $8.5; shut down $8.5; $8.5; increase production O None of the available answers $8; $8; decrease production

Here is information pertaining to a firm operating in a perfectly competitive marke Price $10.00 Output Total Revenue (TR) $8,000 Total Cost (TC) Total Fixed Cost (TFC) $2,800 Total Variable Cost (TVC) Average Total Cost (ATC) $12.00 Average Variable Cost (AVC) Minimum Marginal Cost (MC) Based off of the provided information answer the following 3 questions: What is the firm's average variable cost (AVC)? What is the firm's marginal cost (MC Should the firm decrease production or shut down in the short run? O $8.5; 8.5; shut down $8.5; $8.5; shut down $8.5; $8.5; increase production O None of the available answers $8; $8; decrease production

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
Problem 2. Restaurants in Baltimore operate under a total cost function TC(q) = 3q + 5q^2 + 30 Which part of the cost is fixed cost and which part of the cost is variable cost? What is the marginal cost, MC? What is the average total cost, ATC? What is the average variable cost, AVC? In the long run, calculate the equilibrium price and restaurants’ profits. Below what price will restaurants shut down? (Hint: Consider the AVC.)
Let's consider a company that produces a good Z, in a perfectly competitive market. The expression for the total cost of this undertaking is as follows: C( q) = 72 + 2q2 Graph the marginal cost, average cost, and average variable cost curves of this company. Your chart should be accurate. Also include the break - even point (SR) and closing point (SF).
Please explain every part in details A competitive firm has the following short-run cost function: C(y) = y3 − 8y2 + 30y + 5. (a) Find the firm’s marginal cost function. (b) Find the firm’s average variable cost function. (c) Sketch graphs of the marginal cost and average variable cost functions as functions of output, y. At what point does the average variable cost curve intersect the marginal cost curve? In what intervals does the average variable cost curve decrease and increase? (d) Sketch the graph of the firm’s short-run supply function. (e) What is the shut-down price.
What is the term for the minimum level of output a firm must produce to cover its variable costs in the short run? a) Shutdown point b) Marginal cost point c) Average cost point d) Total cost point
When the market price is equal to the minimum value of the average variable cost curve: a) the firm covers its fixed costs of production b) marginal cost is greater than average variable cost c) average cost is less than average variable cost d) marginal revenue equals average variable cost
Consider the following costs of a typical firm in a purely competitive industry. The firm has no fixed cost given only the available information, what would you except product price to be in the long run?
For a perfectly competitive firm, profit maximization occurs when output is such that A) marginal revenue (MR) = marginal cost (MC). B) total cost (TC) is minimized. C) total revenue (TR) equals total cost (TC). D) average total cost (ATC) is minimized. E) total revenue (TR) is maximized.
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