Homework (Ch 14)2. The demand curve facing a competitive firmThe following graph shows the daily market for medium cardboard boxes in San Diego.20Demand18Supply161412108.12 34.6.7810QUANTITY (Millions of medium boxes)Suppose that Falero is one of more than a hundred competitive firms in San Diego that produce such cardboard boxes.PRICE (Dollars per medium box) Homework (Ch 14)Suppose that Falero is one of more than a hundred competitive firms in San Diego that produce such cardboard boxes.Based on the preceding graph showing the daily market demand and supply curves, the price Falero must take as given is $Fill in the price and the total, marginal, and average revenue Falero earns when it produces 0, 1, 2, or 3 boxes each day.QuantityPriceTotal RevenueMarginal RevenueAverage Revenue(Вохes)(Dollars per box)Dollars)(Dollars)(Dollars per box)123The demand curve that Falero faces is identical to which of its other curves? Check all that apply.O Marginal cost curve .O Marginal revenue curveO Average revenue curveO Supply curve

In perfect competition, firms are price takers because there are large number of firms selling…

Homework (Ch 14) 2. The demand curve facing a competitive firm The following graph shows the daily market for medium cardboard boxes in San Diego. 20 Demand 18 Supply 16 14 12 10 8. 2 1 2 3 4. 6. 7 10 QUANTITY (Millions of medium boxes) Suppose that Falero is one of more than a hundred competitive firms in San Diego that produce such cardboard boxes. PRICE (Dollars per medium box)

Homework (Ch 14) 2. The demand curve facing a competitive firm The following graph shows the daily market for medium cardboard boxes in San Diego. 20 Demand 18 Supply 16 14 12 10 8. 2 1 2 3 4. 6. 7 10 QUANTITY (Millions of medium boxes) Suppose that Falero is one of more than a hundred competitive firms in San Diego that produce such cardboard boxes. PRICE (Dollars per medium box)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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do 1 2 1 4 5 6 7 A 9 TC MC TVC AVC ATC PRICE 12 14 5 7 10 14 19 t 32 Complete the above table and indicate the profit maximizing quantity of good to produce for the perfectly competitive firm HASRAHAST Below, graph the Demand, MR, ATC, AVC, and MC curves form the data given above. Be sure to indicate the profit maximizing quantity. Is the quantity the same as indicated above? 36 32 28 Perfect Competition Homework Problem 21 /2 8 TR Quity MR PROFIT GETTING STARTED 10 Getting to Know the Professor Q Search
EXAMPLE: Paulo's Ping Pong Balls is a firm that operates in a competitive market. The ping pong balls selI for $3 per package. Fill In the following table and determine the profit-maximizing level of output: Total Cost Marginal Revenue Marginal Cost Price Total Revenue Output Profit $3 $1.50 1 3 2.00 3 3.00 3 3 4.50 4 6.50 3 9.00 6. 3 12.00 7. 15.50 19.50 6. 24.00
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O See Hint The graph below shows the marginal cost curve for two firms, A and B. Assuming these two firms together completely dominate their market, draw the market supply curve. Use the straight-line tool, and set the endpoints of the line based on the endpoints of the two given lines. To refer to the graphing tutorial for this question type, please click here. Price and marginal cost 160 150 140 130 120 110 100 80 70 60 50 40 30 20 10 160 るろ 8さ88るるる Quantity supplied (thousands)
ion 4 of 20 The accompanying graph depicts the marginal cost (MC), average total cost (ATC), and marginal revenue (MR) curves A Perfectly Competitive Firm for a perfectly (or purely) competitive firm. 20 19 MC Move point A to identify the profit maximizing price and 18 17 quantity for this firm. 16 15 14 ATC 13 MR = D 12 11 10 9 8 6 5 4 3 A 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity Price and Cost
The following graph shows the marginal cost curve for Oiram-46, a competitive firm producing magic hats. Suppose that currently, the prevailing market price is $1.50 per magic hat. On the following graph, use the blue points (circle symbol) to plot Oiram-46's price line. Then use the grey points (star symbol) to indicate the profit maximizing quantity of output produced by Oiram-46. TOTAL COST (Dollars) he 12 11 10 a 8 N 3 2 1 0 + Oiram-46 7 0 MC + H 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit-maximizing quantity is Demand Profit maximizing quantity ? magic hats, average revenue is $ and marginal revenue is
Attempts Average: /3 3. The components of marginal revenue Gilberto's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Gilberto produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Gilberto faces. As you can see, to sell the additional engine, Gilberto must lower his price from $105,000 to $90,000 per fire engine. Note that while Gilberto gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. PRICE (Thousands of dollars per fire engine) 150 135 120 105 90 75 0 0…
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For “Developing a Sampling Plan for a New Menu Initiative Survey,” page 163 Owners of the Santa Fe Grill realize that in order to remain competitive in the restaurant industry, new menu items need to be introduced periodically to provide variety for current customers and to attract new customers. Recognizing this, the owners of the Santa Fe Grill believe three issues need to be addressed using marketing research. The first is should the menu be changed to include items beyond the traditional southwestern cuisine? For example, should they add items that would be considered standard American. Italian. or European cuisine? Second, regardless of the cuisine to be explored, how many new items (e.g., appetizers, entrées, or desserts) should be included on the survey? And third, what type of sampling plan should be developed for selecting respondents, and who should those respondents be? Should they be current customers, new customers, and/or old customers? Determine the appropriate sample…
2. The demand curve facing a competitive firm The following graph shows the daily market for extra-large cardboard boxes in San Francisco. Suppose that Vesoro is one of more than a hundred competitive firms in San Francisco that produce such cardboard boxes. Based on the preceding graph showing the daily market demand and supply curves, the price Vesoro must take as given is . Fill in the price and the total, marginal, and average revenue Vesoro earns when it produces 0, 1, 2, or 3 boxes each day. Quantity Price Total Revenue Marginal Revenue Average Revenue (Boxes) (Dollars per box) (Dollars) (Dollars) (Dollars per box) 0 0 – 1 2 3 The demand curve that Vesoro faces is identical to which of its other curves? Check all that apply. Average revenue curve Marginal revenue curve Supply curve Marginal cost curve
Homework (Ch 13) Suppose Lorenzo runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Lorenzo's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Lorenzo produces. 200 175 Total Revenue 150 125 Total Cost Profit 100 75 50 25 -25 1 4 7 8 QUANTITY (Teddy bears) TOTAL COST AND REVENUE (Dollars)
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