Figure 9.3- Price or Cost321991110632H units.GO 40 units.O 60 units.O 80 units.2040B8HMCC60QuantityATCMR80 100DemandIf the firm in Figure 9.3 used marginal cost pricing to determine its output and price.the output produced would be:120

A firm uses marginal cost pricing, and produces at the intersection of demand and marginal cost…

Answered: If the firm in Figure 9.3 used marginal…

Business

Economics

If the firm in Figure 9.3 used marginal cost pricing to determine its output and price. the output produced would be:

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

See similar textbooks

Related questions

Q: A marginal cost pricing rule sets marginal cost equal to price O minimum average variable cost…

A: In economics, marginal-cost pricing is the practice of adjusting a product's price to equal the…

Q: Suppose the quantity of apples supplied in yourmarket is 2,400. If there are 60 apple producers,each…

A: Supply is the volume of products that sellers are willing to sell in the market, at a given price.

Q: Suppose that each firm in a competitive industry has the following costs: where q is an…

A: Hi, since there are multiple questions posted, we will answer the first question. If you want any…

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: In a competitive market, there are large number of firms selling identical products. Firm's ATC is…

Q: 5. Profit maximization and shutting down in the short run Suppose that the market for microwave…

A: Profit maximization refers to a situation in which a firm is earning maximum profit by producing at…

Q: The diagram shows a price-taking bakery's marginal and average cost curves, and its isoprofit…

A: Perfect competition is a market where there are many sellers and buyers and the sellers are…

Q: Jesaki Inc. is trying to enter the widget market. The research department established the following…

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: According to the given graph, at P = 25, Quantity is taken from minimum of AVC which is, Q = 30000.…

Q: d. Now assume the market price is $5.50 per pair, and Buddies produces the profit-maximizing…

A: The answer to the question is as follows :

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

Q: Consider the competitive market for sports jackets. The following graph shows the marginal cost…

A: Marginal cost: The marginal cost is the incremental cost involved in producing one more unit of an…

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: Given: To Find: The firm's optimal quantity of units and the profit/loss: If the price is below,…

Q: Consider a firm in a competitive industry . The firm's average cost curve and marginal cost curve…

A: In the above diagram, the firm in a competitive industry produces output at a point where the…

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: Shutdown is the situation for firm in short run where they are recovering only variable cost and…

Q: nsider the competitive market for dress shirts. The following graph shows the marginal cost (MC),…

A: A shutdown point is a degree of tasks at which an organization encounters no advantage for…

Q: Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The…

A: Given, the market for tilapia, there are two producers. a) At market price, P = $2.50, Ripple rock…

Q: he two side by side graphs are for two firms that between them supply all the original grown…

A: A perfectly competitive firm supplies the quantity of output at which price equals MC. The MC should…

Q: Assume that a firm in a competitive market faces the following cost information. If the market price…

A: Firms in perfect competition are price takers as there are a large number of firms selling identical…

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

A: Fixed cost: Cost to the firm which doesn’t change with output produced.

Q: Consider the competitive market for sports jackets. The following graph shows the marginal cost…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a…

A: The marginal-cost is the cost incurred on the production of an additional-unit of output. And the…

Q: The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average…

A: In economics, a perfectly competitive firm is a conceptual model that supposes a company encounters…

Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…

A: Average cost is the ratio of the total cost and the total output produced. Whereas, the marginal…

Q: Suppose that the quantity demanded for Windows 11 operating system is given by q = 320 − 2p, where p…

A: The demand function for Windows 11: Total cost function: Marginal revenue: The marginal revenue…

Q: Fill in the remaining cells of the following table. Quantity (Pairs) Total Cost Marginal Cost Fixed…

A: The relationship b/w various cost is given below: Total Cost = Total Fixed Cost(TFC) + Total…

Q: Suppose the imaginary company of Roobek is a small, Reno-based American apparel manufacturer…

A: Costs are the monetary value of expenses for supplies, services, labor, goods, equipment, and other…

Q: Suppose that each firm in a competitive pizza market has the following identical cost: Total cost:…

A: Given Total cost function of each firm TC=25+1.5Q2 ... (1) Demand function Q=120-P or…

Q: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 +…

A: A competitive industry refers to a industry in which there are many buyers and sellers dealing a…

Q: Suppose that each firm in a competitive industry has the following costs: Totalcost:TC=50+1/2q2…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, then…

A: The study and evaluation of corporate financial concerns using abstract economic concepts and ideas…

Q: The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a…

A: Here we calculate the following terms by using the given data of Cost , so the calculation of the…

Q: The inverse demand for tea is given by P= 10 – 0.04Q, where Pis the price per a gram of tea and Qis…

A: In Cournot duopoly two firms compete in quantity and maximize profit by producing at MR =MC

Q: The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a…

A: Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Q: A boutique chocolate manufacturer produces 2 types of chocolate, Dark chocolate, and Milk chocolate…

A: Lagrangian optimization problem has a following setup : Objective function & Constraint…

Question

Figure 9.3
- Price or Cost
32199
11
10
6
3
2
H units.
G
O 40 units.
O 60 units.
O 80 units.
20
40
B
8
H
MC
C
60
Quantity
ATC
MR
80 100
Demand
If the firm in Figure 9.3 used marginal cost pricing to determine its output and price.
the output produced would be:
120

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define marginal cost pricing:

VIEW

Step 2: Explain the answer:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Typed plz Maintain accuracy and quality in your answer take care of plagiarism Answer completely both parts I will upvote for sure
Please don't give wrong answees
The market for apple pies in the city of Ectenia iscompetitive and has the following demand schedule:Price Quantity Demanded$1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0Each producer in the market has fixed costs of $9 andthe following marginal cost schedule:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost andaverage total cost for each quantity from 1 to6 pies.b. The price of a pie is now $11. How many pies aresold? How many pies does each producer make?How many producers are there? How much profitdoes each producer earn?c. Is the situation described in part (b) a long-runequilibrium? Why or why not?d. Suppose that in the long run there is free entryand exit. How much profit does each producerearn in the long-run equilibrium? What isthe market price? How many pies does eachproducer make? How many pies are sold inthe market? How many pie producers areoperating?
Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60
essay (on this firm) argues that, the firm would be better off by closing down. Do you a unit of output of this company is Birr L3. A student working on his senior A company in a perfectly competitive market has a total cost function given as: 6. TC 50+40+ The price agree? Explain By using the knowledge of relationshins among the various cost concepts, fill the bia cells of the following table. Quantity TFC TVC TC MC AFC AVC ATC 50 50 64 98 162 26 20 finms (Fi and Fa) producing identical product competing for like to dominate the other, if possible. They each defends
E E on The diagram illustrates the demand curve, isoprofit curves and the marginal cost curve of MQ2020, a luxury car manufactured by MQ Motors. Assume that MQ Motors currently chooses to operate at Point E. Which statement correctly describes the market of MQ2020? 10,000 Price, marginal cost (5) Pt-$5,440 Po B 0 190 20 Q=32 D Qo Quantity of cars, Q Marginal cost Isoprofit curve $150,000 Isoprofit curve 563,360 Demand curve 120 Select one: O a. Total surplus is not being maximised. Ob. Deadweight loss is the loss incurred by MQ Motors for not selling more cars. O All possible gains from trade are being achieved as MQ Motors operates at its profit-maximising output and price. Od. The amount of consumer surplus is the area ADP. O e. Pareto efficient allocation is currently being achieved.
Give type answer
Pls help me stepwise correctly
2
Solve all this question......you will not solve all questions then I will give you down?? upvote.....
The market for apple pies in the city of Ectenia is competitive and has the followingdemand schedule:Price Quantity Demanded$ 1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0 ch producer in the market has fixed costs of $9 and the following marginal cost:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost and average total cost for 1 to 6 pies.b. The price of a pie is now $11. How many pies are sold? How many pies does eachproducer make? How many producers are there? How much profit does eachproducer earn?c. Is the situation described in part (b) a long-run equilibrium? Why or why not?d. Suppose that in the long run there is free entry and exit. How much profit does eachproducer earn in the long-run equilibrium? What is the market price? How many piesdoes each producer make? How many pies are sold in the market? How many pieproducers are operating?
pleas give ne correct answwrr with explanation and dont use chatGPT