Q: What is the total profit of cleaning five driveways if the price mr plow can charge is $10 per…
A: Please upload the complete question to avoid confusion. Since we had this question, we will help you…
Q: The following graph shows the daily cost curves of a firm operating in a perfectly competitive…
A: In perfect competition, There exists a large no. of sellers and buyers The firm produces where the…
Q: The production function for a price-taking firm is given by q = 2.5k0.4L0.4. What is the supply…
A: * SOLUTION :- *(8) Firstly we find the demand functions and then use them to find the supply…
Q: uppose that the maket for air fresheners is a perectly competitive market. The following graph shows…
A: Perfectly competitive market structure in which there are large number of buyers and selling…
Q: Price and cost (dollars) 70 60 50 40 30 20 10 0 MC₁ 50 Quantity MC₂ 100 Demand 150 The demand for…
A: The marginal cost is the change in the total cost that arises when the quantity produced is…
Q: A bookstore sells 90 textbooks at a price of $70 a book. The average total cost is $50 per textbook.…
A: Given that : Number of textbooks = 90 Price of a book = $ 70 Average total cost = $ 50
Q: If new technology in a perfectly competitive market brings about a substantial reduction in costs of…
A: Let's dissect it in detail. In a perfectly competitive market, new technology that lowers…
Q: A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost…
A: The objective of the question is to calculate the profit of a competitive firm that is maximizing…
Q: Should a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed…
A: A shut down point is when the price is below Average variable cost. The firm should shut down in…
Q: Using the graph on the next page, do the following problems: Determine the profit maximizing level…
A: The marginal cost (MC) curve is calculated by dividing the change in total cost by the change in…
Q: Assume that the marginal cost curve is given by MC(qi) = 6 + 4qi. And the average variable cost is…
A: MC = 6 + 4qi AVC = 6 +8qi+ 2qi.
Q: A firm collect $300 by selling 5 bicycle and collect $330 by selling 6 bicycle. Is this seller in a…
A: Revenue collected by selling 5 bicycles = $300 Revenue collected by selling 6 bicycles = $330
Q: Suppose that the market for black sweaters is a competitive market. The following graph shows the…
A: A perfect market, sometimes known as an atomistic market, is characterized by numerous idealizing…
Q: The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number o…
A: Given: Cost per unit of producing a product is 60 + 0.2x dollars. x is no: of units produced per…
Q: The figure illustrates the average total cost (ATC) and marginal cost (MC) curves for an orange…
A: Under perfectly competitive market structure there are a large no of buyers and sellers in the…
Q: The table below shows cost data for producing different amounts of refrigerators. Use the…
A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…
Q: If the market price is 12, will the firm produce more than 120, exactly 120 or less than 120 units?…
A: The firm maximizes profit by producing at a point where price is equal to marginal cost.
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: If the market price is 3, will the firm produce more than 100, exactly 100 or less than 100 units?…
A: Firm maximizes profit by producing at price equals to marginal cost P=MC
Q: n the short run, at a market price of $20 per candle, this firm will choose to produce candles per…
A: Profit Maximization refers to the process taken up by the firms to make sure that the best output…
Q: С О A B C K О To maximize profits, the firm whose data is shown in the graph should produce the…
A: Profit maximizing level of output is given at the point where marginal revenue (MR) equals marginal…
Q: What is the profit margin for this firm at a quantity of eight?
A: Profit occurs when price is higher than average total costs. We can such a profit as super normal…
Q: n economics terms ,what does it mean for a firm to be the right size for a market?
A: Economics is the study of use of scarce resources by the people having unlimited wants of these…
Q: Price and cost (dollars) 16 14 12 10 2 0 50 MR Output 100 SMC ATC AVC 150 D
A: Price setter is a firm that can decide its own prices like a monopoly which has a power to make…
Q: Define economic efficiency. Is a firm economically inefficient if it can cut costs by producing…
A: Economics deals with the allocation of limited resources to maximize the welfare of the economy. It…
Q: In the short run, at a market price of $20 per wind chime, this firm will choose to produce On the…
A: In perfect competition , Firm will produce where P = MC P is the market price MC is the marginal…
Q: Suppose that the market for dress shirts is a competitive market. The following graph shows the…
A: Here, the given graph shows the marginal cost, average variable cost and average total cost curves…
Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…
A:
Q: calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal…
A: Total Revenue is the value of earnings of the firm on question. It is the product of price charged…
Q: In the short run, given a market price equal to $15 per romper, the firm should produce a daily…
A: General Equilibrium Theory is a macroeconomic theory that makes sense of how supply and demand in an…
Q: PRICE (Dollars per jumpsuit) Hint: Once you have positioned the rectangle on the graph, select a…
A: A market with perfect competition is an idealized structure where a large number of sellers and…
Q: Given cost and price (demand) functions C(q)= 110q + 44,600 and p(g) = - 2q + 860, what is the…
A: The increase in income that occurs from the sale of one additional unit of output is known as…
Q: The following graph plots daily cost curves for a firm operating in the competitive market for demin…
A: In economics, particularly general equilibrium theory, a perfect market, also called an atomistic…
Q: Your product's revenue per unit is $30, and product's cost per unit is $10. If the demand for next…
A: Given information: Per unit revenue (selling price): $30 Per unit cost (variable cost): $10 Demand…
Q: Suppose the market price of sugar is 22 cents per pound. If a sugar farmer produces 100,000 pounds,…
A: When there are numerous buyers and sellers, the impact of each on the market price is minimal, the…
Q: a) what is optimal price b) What is optimal profit
A: Optimal price / quantity and profit for a firm: A firm always try to maximize its profits given…
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: 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: On the graph input tool, change the number found in the Quantity Demanded field to determine the…
A: Demand: Demand for a commodity can be defined as the desire and willingness of a consumer to acquire…
Q: How low would the market price haveto fall before the firm decided to produce nothing?
A: During production, firm incurs various costs. Some costs are fixed while some are variable. Fixed…
Q: marginal cost (MC) and average total cost (ATC) f
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: FITnest is one of the few fitness centers serving the greater area. The gym has been open for 3…
A: Given, Price per visit in gym = $25 Average Cost (AC) per visit in gym = $10 a) The ‘FiTnest’ is a…
Q: The following graph plots daily cost curves for a firm operating in the competitive market for demin…
A: A perfectly competitive market, also called pure competition, is a theoretical concept in…
Q: the previous graph, use the blue rectangle (circle symbols) to shade the area representing the…
A:
Q: MC ATC MR 20 222426 Units of output Figure 10.3 If this firm is producing the profit-maximizing…
A:
If the market price is 7, will the firm produce more than 100, exactly
100 or less than 100 units? Explain
![Price
10
5
S
100 120
3
Q
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F988ceb56-9d68-4ae0-b842-aaa7c2bdd1f9%2F6023b360-bd63-4e5a-b73d-26ef689e8c07%2F5a2ygji_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Sometimes firms should produce even if the price falls below minimum ATC. Why?Sarge's Lawn Mowing Service is a small business a perfectly competitive market. The prevailing market price of lawn mowing is $20 per acre. Sarge's costs are given by total cost = 0.1q² + 10q + 50, where q = the number of acres Sarge chooses to cut a day. How many acres should Sarge choose to cut to maximize profit? values without any comma, or decimal places.) How much is Sarge's maximum daily profit? your answer in numerical values without any dollar sign, comma or decimal place (please put your answer in numerical (please putSuppose that the market for cashmere sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Profit or Loss 80 70 60 40 ATC 30 20 MC AVC 10 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of sweaters per day) In the short run, at a market price of $45 per sweater, this firm will choose to produce 45,000 sweaters per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $45 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be thousand per day in the short run. PRICE (Dollars per sweater)
- Suppose a profit maximizing firm in a perfectly competitive market currently pays their employees $20 per hour. When their most recently hired employee began working at the firm, their hourly production increased by 5 units. What price must they sell their product for?Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best for its consumers in the long run?For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit (Dollars per air freshener) (Air fresheners) (Dollars) (Dollars) (Dollars) (Dollars) 10.00 44,000 16.00 44,000 40.00 44,000 If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $44,000 per day. In other words, if it shuts down, the firm would suffer losses of $44,000 per day until its fixed costs end (such as the expiration of a building lease). This firm's shutdown price-that is, the price below which it is optimal for the…
- Suppose that the market for dress shirts is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. 50 45 Profit or Loss 40 35 30 ATC 25 20 AVC 10 MC 0. 4. 10 12 14 16 18 QUANTITY (Thousands of shirts) In the short run, at a market price of $15 per shirt, this firm will choose to produce shirts per day. 20 15 PRICE (Dollars per shirt)The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE(Dollars pertracker) 100 90 70 60 50 40 20 10 0 0 MO ATC AVC 50 60 70 80 10 20 30 40 QUANTITY (Thousands of trackers per day) 90 100 Profit or Loss In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.The following diagrams show the market for a good, as well as the cost curves for an individual firm in the market. Assume that all firms are identical. Under current market conditions, each individual firm will be breaking even. Individual Firm Market $ MC ATC S True False 24
- Costs MC (per pound) ATC AVC 3.00 2.25 1.50 150 180 225 Quantity (pounds) The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the following questions. Assume the market price is $3 per pound. a. What is the lowest price at which the apple producer will supply output in the short run? $ per pound. b. What is the firm's profit-maximizing (loss-minimizing) output? c. Is the firm earning a profit or a loss? loss profitSuppose that the market for air fresheners is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. 40 36 Profit or Loss 32 28 24 ATC 16 12 AVC MC + 0 2 4 8 10 12 14 16 18 QUANTITY (Thousands of air fresheners) In the short run, at a market price of $20 per air freshener, this firm will choose to produce air fresheners per day. 20 20 8. PRICE (Dollars per air freshener)10 ATC ATC2 ATC3 ATC, 2 2 4 6 8 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. If the market demand for copies is 12,000 copies per day, how many copy shops would you expect to see in this market? The answer depends on the price of a copy, which is unknown. O 1 (because the copy shop will become a monopoly with a large quantity demanded) O (because the copy shop can't produce 12,000 copies efficiently and will shutdown) 3 (with each shop supplying 4000 copies per day) 8, 6 Average cost (cents per copy)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)