### Transcription for Educational Website:**Title**: Analyzing Production Costs in a Perfectly Competitive Industry**Figure**: Unicycle Production Costs**Scenario**: If the current price is $20 in this perfectly competitive industry, we should expect in the long run...**Explanation of the Graph**:The graph plots various cost curves against output levels:- **Y-Axis**: Price and Cost (in dollars)- **X-Axis**: Output The graph includes the following curves:1. **MC (Marginal Cost)**: Upward sloping curve.2. **ATC (Average Total Cost)**: U-shaped curve above the AVC curve.3. **AVC (Average Variable Cost)**: U-shaped curve below the ATC curve.4. **AFC (Average Fixed Cost)**: Downward sloping curve.The output levels are marked along the X-axis as 40, 42, 44, and 46. The price level is indicated as $20.**Multiple Choice Question**:- **A.** The presence of an economic profit to attract new firms to the industry.- **B.** That there will be no change in the number of firms in the industry.- **C.** The presence of a normal profit.- **D.** The presence of an economic loss to persuade some firms to leave the industry.[Note: Moving to another question will save this response.]**Question**: Given the price and cost curves, what can we infer about the long-run equilibrium in this industry?---This transcription captures the essential elements of the graph and contextualizes the scenario by providing information on how cost and output interact in the context of a perfectly competitive industry.

A perfect competitive firm is a price taker and can sell any quantity of the commodity at given…

igure: Unicycle Production Costs) If the current price is $20 in this perfectly competitive industry, w ATC MC AVC 20 18 17 16 AFC 40 42 44 46 Output A. the presence of an economic profit to attract new firms to the industry. B. that there will be no change in the number of firms in the industry. C. the presence of a normal profit. D. the presence of an economic loss to persuade some firms to leave the industry. Price and Cost ($)

igure: Unicycle Production Costs) If the current price is $20 in this perfectly competitive industry, w ATC MC AVC 20 18 17 16 AFC 40 42 44 46 Output A. the presence of an economic profit to attract new firms to the industry. B. that there will be no change in the number of firms in the industry. C. the presence of a normal profit. D. the presence of an economic loss to persuade some firms to leave the industry. Price and Cost ($)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Q5 Why will a perfectly competitive firm not sell its product below the prevailing market price? a. It can sell all it wishes at the market price. b. This would lead to a price war among sellers. c. The sellers in the market have agreed to not sell below a specified price. d. Its costs would increase dramatically. e. It faces inelastic demand.
QUESTION 5 Price 10 97 8- 7+ 6 3 2 MC ATC AVC Pl P2 P3 P4 + + 1 2 3 1 S 6 7 N Quantity At the price level labeled "P2," what happens in the short-run (SR) and long-run (LR) O SR: This firm will have positive economic profit. LR: Firm(s) enter this market and price decreases. SR: This firm will have positive economic profit. LR: Firm(s) enter this market and price remains the same. SR: This firm will have zero economic profit. LR: Firm(s) enter this market and price decreases. SR: This firm will have zero economic profit. LR: Price remains the same. OSR: This firm will operate with negative profit. LR: Firm(s) exit this market and price remains the same. OSR: This firm will operate with negative profit. LR: Firm(s) exit this market and price rises. OSR: This firm will not operate (shutdown). LR: Firm(s) exit this market and price remains the same. OSR: This firm will not operate (shutdown). LR: Firm(s) exit this market and price rises.
Frances sells pencils in the perfectly competitive pencil market. Her output per day and costs are seen in the table to the right. a. If the current equilibrium price in the pencil market is $1.80, what price will Frances charge? ⒸA. $1.80 OB. $5.00 OC. $2.00 D. $1.05 b. Find the correct quantities for the missing values in the table, as represented by (i, ii, iii, and iv; enter all values as dollars and cents). (1) Marginal revenue is $ (i) Total revenue is $ (iii) Marginal revenue is $ (iv) Total revenue is $ c. What quantity of pencils will maximize Frances' profit? pencils. Output per Total Cost day 0 1 $1.05 1.85 2.55 3.20 3.65 4.30 5.55 7.75 10.10 MC $0.80 0.70 0.65 0,45 0.65 1.25 2.20 2.35 Total Marginal Revenue Revenue $0.00 1.80 3.60 5.40 (ii) 9.00 10.80 (iv) 14.40 $1.80 1.80 (1) 1.80 1.80 (ii) 1.80 1.80
do fast i will 5 upvotes.
11. Study Questions and Problems #11 Suppose the industry equilibrium price of residential housing construction is $120 per square foot, and the minimum average variable cost for a residential construction contractor is $150 per square foot. You should advise the owner of the firm to
1. The manufacturers of printers are operating in a perfectly competitive market. Each printer sold for $150. Suppose that the cost to produce each of printers initially shows a short span of decreasing marginal costs, followed by an increase in the marginal costs. a. Draw a possible total cost curve for producing printers. For a given quantity (Q) (placed at any location you choose on the horizontal axis), show the corresponding profit. b. Draw the possible marginal cost curve for printer production. Indicate the maximum output level of profit.
None
Price MC $5.50 ATC $5.00 $4.50 $3.00 $2.00 $1.75 55 110 MR 165 a. If this firm wants to maximize profits or minimize losses, be produced. (4 Points) b. The price charged would be (4 Points) c. The profit or loss incurred would be (4 Points) AVC Demand Quantity units of output should d. Is this firm likely to continue producing in the long run? Why? (4 Points)
I think either 10 or 15 please help ?
Please see the attached12
Use Figure 11-5 to answer the following question(s). Cost and Revenue In long run equilibrium, this competitive firm will face a price of $6,200 units $10, 250 units $20, 300 units. $16, 300 units. $20 11 71 10 b 6 a Figure 11-5 טן MC MR ATC AVC 200 250 300 Quantity and produce 13
1. The following table shows the cost information for a perfectly competitive firm. Production Total variable cost (RM)0 01 1002 1503 2104 2905 4006 5407 7208 950 a. If the total fixed cost of the firm is RM300, calculate total cost, average cost and marginal cost. b. If the market price is RM200, calculate the firm total revenue, and total profit/loss c. Determine the level of production that will maximise the firms profits.