In the given graph of a perfectly competitive firm, assume that the firm is profit maximizing and does not shut down in the short run. Price $485 $450 $300 $225 205 260 Quantity Calculate the firm's total cost. a) $48,100 b) $78,000 c) -$78,000 d) -$48,100 336 4 365 MC ATC AVC MR-P

In the given graph of a perfectly competitive firm, assume that the firm is profit maximizing and does not shut down in the short run. Price $485 $450 $300 $225 205 260 Quantity Calculate the firm's total cost. a) $48,100 b) $78,000 c) -$78,000 d) -$48,100 336 4 365 MC ATC AVC MR-P

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 1. Suvreen runs a flower shop in a perfectly competitive market and sells each flower bouquet for…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Refer to the following table. If the market price of the good is $150, the firm will in the short…

A: The marginal cost (MC) curve at and above the shutdown point is the short-run supply curve for a…

Q: At a market price of $35.20 a batch, what quantity does Lin’s produce and what is the firm’s…

A: Price (dollars per batch) Quantity demanded (batches per day) Total Revenue Marginal…

Q: Price and Cost (dollars) O O 8 OC 76543 2 1 Refer to the graph above. The perfectly competitive,…

A: The point is to determine how much output a perfectly serious, profit-expanding firm will produce in…

Q: 3. A firm's short-run total cost function is TC = 4q²-2q+7 he firm sells in a perfectly competitive…

A: The firm does not control over the price in the perfectly competitive market. The firm produces…

Q: 7 62 10.00 8.00 8 8 64 9.00 7.00 9 9 67 8.00 6.10 10 10 72 7.00 5.00 11 11 79…

A: The table is as follows : Price Quantity Total Cost Marginal cost 10 6 61 - 8.85 7 62…

Q: Figure: The Perfectly Competitive Firm Price (per unit) MC ATC $3.00 788 1.00 400 250 300 Output…

A: The perfect competition is the form of market consist of large number of buyers and sellers, selling…

Q: Here is an industry in long run equilibrium. What is profit in this industry when demand is at D1?…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: Question 32 Draw a graph to demonstrate the circumstances that would prevail for a perfectly…

A: A competitive market refers to a market where zero barriers to entry exist along with perfect…

Q: Price Marginal cost 0 AVC Average total cost Demand Marginal revenue Quantity Discuss the firm…

A: According to the question here The graph in question is related to the Monopoly firm where .…

Q: Use the values for a perfectly competitive firm below to answer the questions: Price Quantity $10…

A: For a perfectly competitive firm, price is $10, Quantity is 2000, Total cost is $24,000, the Fixed…

Q: Which of the following describes the statement "A fall in the supply of petrol will lead to an…

A: Economics is the branch of social science that deals with the production, consumption, and…

Q: Graph represents the cost structure of an individual firm in a perfectly competitive market.…

A: Break even point is defined as the point where total costs of the firm is equal to the total revenue…

Q: $20 $18 MC ATC $16 P = MR $14 $12 AVC $10 $8 $6 $4 $2 $0 200 400 600 800 1,000 1,200 Output (Q) The…

A: A perfect competitive firm is always a price taker.

Q: You are advised to promote perfectly competitive firms in the industry, what would be your…

A: All the firms in the perfectly competitive market structures produce identical or homogenous goods…

Q: Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost…

A: (a) Quantity TVC MC 0 0 NA 1 100 100 2 180 80 3 220 40 4 300 80 5 390 90 6 500 110…

Q: 7. Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable…

A: (a) Quantity TVC MC 0 0 NA 1 100 100 2 180 80 3 220 40 4 300 80 5 390 90 6 500 110…

Q: Output Total Total (Q) Price Revenue Cost 10 $12.00 $140 20 $12.00 $220 30 $12.00 $380 40 $12.00…

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

Q: Refer to the Figure under perfect competition. If P represents the market price for a price-taking…

A: A perfectly competitive firm:A perfectly competitive firm is a firm operating in a perfectly…

Q: Part 2 : You are examining a firm that is under a perfectly competitive market. Show all necessary…

A: Some of the basic concept that is necessary to solve the above problem: Profit = Revenue - Total…

Q: Make a sketch of Lin’s short-run cost curves

A: Short-run cost curve represents the cost incurred by the producer by producing each quantity of…

Q: Calculate the profit for the perfectly competitive form above if the market price is $1 (graph left…

A: In perfect competition, Q*(eqm quantity) is found by the equality condition of P(price) and…

Q: Which of the following will cause the purely competitive firm to stop operations? A. the price can…

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

Q: For a burger seller Marginal, average variable and average total cost curves are attached below:…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: Consider the following figure which shows the cost curves and demand curve for a firm in a perfectly…

A: In perfect competition, There exists a large numbers of buyers and sellers selling identical…

Q: Price 8 7 6 5 4 3 I I 10 11 12 13 MC ATC AVC Quantity

A: The market price is $4, which is below the firm's average variable cost at all levels of output.…

Q: 34. In the long run, a profit maximizing]firm will choose to exit a market when a. fixed costs…

A: If a market where there is freedom of entry and exit, the firm that suffer loss will exit from the…

Q: average variable cost

A: a. Total cost incurred for 0th unit will be the fixed cost i.e., $12. Deducting this from Total cost…

Q: The paradox of value between diamonds and water is explained by the fact that the O total utility of…

A: ‘Utility’ or total utility refers to the satisfaction, which a consumer derives from consuming a…

Q: Price MC ATC 4 10 $8 每6 MR AVG 出4 $ 3 Quantity 10 20 30 40

A: In a perfectly competitive market, an optimal output for a firm is when it is producing at a level…

Q: Revenue and cost (dollars per unit) MC AVC 50 40 30 20 10 10 30 40 50 Output (units per day) The…

A: Answer :- Complete competition is a market structure where a large number of buyers and sellers…

Q: medium of exchange unless it also serves as a store of value. Is this statement t

A: The money is used as the medium of exchange and store of value. Money is used as unit of account as…

Q: TUC Total variable cost (rials) 60.000 61.000 Quantity of biryani plates sold per day 200 201 202…

A: The profit is maximized in perfect competition when Marginal Revenue (MR)=Marginal Cost (MC).Also,…

Q: ... 50 MC ATC 40 MR 30 20 10 10 20 30 40 Quantity (per day) The figure above shows a perfectly…

A: Equilibrium price and equilibrium quantity will set at the point where marginal revenue equals…

Q: 50 MC ATC 40 30 MR 10 10 20 30 40 Quantity (per day) The figure above shows a perfectly competitive…

A: In the above, the profit-maximizing output for the perfectly competitive market is when MR=MC. This…

Q: Refer to Figure 12-10. If the price is less than $6, the firm should short run and in the long run.…

A: The study and analysis of commercial financial concerns using abstract economic ideas and concepts…

Q: Suppose a competitive firm has the following cost: output(units): 10 11 12 13 14 15…

A: The table showing output and cost is as follows:

Q: MC ATC 50 40 AVC E 30 20 10 8 Quantity (per day) 5 10 11 12 a. If the price in this market is $50,…

A: The perfectly competitive is the type of market structure where there are large number of buyers and…

Q: 8. Why is the marginal revenue for a firm in perfect competition equal to the market price? 9. The…

A: Perfect competition is a theoretical economic model that represents a market characterized by a high…

Q: Canadian red wheat is a normal good, in a perfectly competitive market which is in long run…

A: Normal Goods are those goods that experience a rise in the demand level with a decline in their…

Question

In the given graph of a perfectly competitive firm, assume that the firm is profit maximizing and
does not shut down in the short run.
Price
$485
$450
$300-
$225
205 260
c) -$78,000
d) -$48,100
Quantity
Calculate the firm's total cost.
a) $48,100
b) $78,000
336
365
MC
ATC
AVC
MR=P

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: To explain working for perfectly competitive firm in short run

VIEW

Step 2: To calculate firm's Total cost

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

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

Use the following data to analyze the condition when the product price is set at $56. A. How much would be the total revenue? B. What will be the profit-maximizing or loss-minimizing output? C. How much would be the total cost?
Required information The following figure shows the costs for a perfectly competitive producer: AVC, ATC, MC $46 235 30 25 20 15 10 5 0 MC 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period Refer to the above figure to answer this question. If the price of the product is $10, what is the profit-maximizing (or loss-minimizing) output?
PROBLEM (4) The short run market supply for shirts is QS = 50P – 1000 and the market demand isQD = 2800 – 50P Let a typical firm operating in a perfectly competitive industry has short-run total cost and marginal cost curves: TC(q) = 100 + 20q + q2 and MC(q) = 20 + 2q (a) Determine the short run market equilibrium price and quantity for this type of shirt.(b) Determine how much the typical firm will produce at the equilibrium price you found in (a).(c) If all firms had the same cost structure, how many firms should be operating in this industry at the moment? (d) Calculate the profit or loss of each firm at the short-run market equilibrium. If they are making losses, why are they still producing in the short run? In the long run, will there be entry into the market or exit from it?(e) What would the price be in the long run equilibrium, assuming constant cost industry?(f) In the long run equilibrium, how many shirts would each firm produce? What would be a firm’s net profit?(g) How…
According to the figure above: a. Is the firm maximizing economic profit? b. What is the firm's short run shutdown price?
Price, cost of bushel $30 MC 26 22 ATC 18 14 10 Break-even price 2 1 4. 6. Quantity of tomatoes (bushels) Look at the figure Total Cost for Tomato Producers. The market for tomatoes is perfectly competitive. The market price of a bushel of tomatoes is $14. The farmer's total cost at the profit-maximizing number of bushels is: O $3.50. $14.00. $56.00. O $72.00. O None of these options is correct.
If the price in this market is $50, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output.
a) What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?
Assignment Instructions: Find the Graphs for a Pure Competition Firm Do a Google Images and find the graphs for a perfectly competitive firm. graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.
MC АТС $25.00 AVC $19.50 -- $15.00 $12.50 - - 30 40 50 60 Output (Q) For the firm shown in the diagram above, its Long Run Supply Curve is its curve for any price greater than ATC; $19.50 MC; $12.50 AVC; $12.50 MC; $19.50
E4 A Firm ís short-run total cost function is: T C = 4q2 - 2q + 7 The Firm sells in a perfectly competitive market and the ruling price is p = 50 (a) Find the output level that maximizes profits. Show you have a maximum. (b) Find the output level that minimizes average cost, AC. Show you have a minimum. (c) Sketch the graphs of total cost and total revenue with the same axes (d) Sketch the graph of the profit function.
Sally owns and operates a pizza house. The diagram shows the cost and revenue curves for the pizza house. Initially, Sally sets her price to maximise profits. Corts Revenue ( # G : Quantity per day (1) Which market structure is this? Explain. (i) Calculate the profits made by Sally. Is this a long run or short run situation? Explain. (i) Calculate the change in total profit if Sally changes her objective from profit maxim Attach File Browse Content Collection Browse Local Files revenue maximisation. You are advised to show your working
Analyze Perfect Competitive Market - In terms of cost, price, and profit write a paragraph in your own words plzz. No plagiarism. Provide unique solution