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![In the short-run, a firm that is earning negative profit means that they'll shutdown if:
-FC<TR FC - VC
TR>TC FC
OTR > VC
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- Text Problem 24-1bc Question Help v Given the information in the table at right, calculate the dry cleaner's marginal revenue (MR) and marginal cost (MC) at each output level. (Your answer should be rounded to the nearest cent.) Price Total Output (Suits Cleaned) Suit ($) (S) Total Costs Revenue (S) per MC ($) MR ($) 8.00 3.00 0.00 1 7.50 6.00 7.50 2 7.00 8.50 14.00 3 6.50 10.50 19.50 4 6.00 11.50 24.00 5 5.50 13.50 27.50 6 5.00 16.00 30.00 4.50 19.00 31.50 8 4.00 24.00 32.00 OOD D IOOD(ii) Calculate total profit for this firm.Break even point analysis 1. A manufacturing business that is involved in manufacturing and selling a single product. The annual fixed expenses to run the business are $15000 and variable expenses are $7.50 per unit. The sale price of your product is $15 per unit. A. Formulate the total revenue, total cost, and profit B. Find the break-even point quantity and revenue. C. Find the number of units to sell if the estimated profit is $50,000 D. Find the total profit if the total units sold is 5000 units. E. Find the units to sell to break-even the fixed expenses. 2. It costs a publishing company 50,000 dollars to make books. The 50,000 is a fixed cost or cost that cannot change. To help the publishing company sell the books, how many books should they sell to break even? 3. A manufacturing company supplies its products to construction job sites. The average monthly fixed cost pee site is $4,500, while each unit cost $35 to produce and selling price is $50 per unit.Determine the…
- Q3 need in 10 minutesMC ATC S Unit A 1.20 1.05 .90 60 AVC 15 20 35 Output rate The above diagram shows the cost curves for a competitive firm. Which of the following is correct? If price is $0.90, firm makes economic loss but continue to operate Shut down point is where price is $0.90. If Price exceeds $0.60, firm continue to produce even under economics loss If Price falls below $0.60, firm will continue to produce even under economics lossQuantity 0 1 2 3 4 5 6TC(in $) 5 10 13 18 25 34 45Calculate MC, AVC, ATC for the firm ?
- ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. b. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. (3 marks) • Total revenue $ 500,000 • Wages and salaries $ 40,0000 • Forgone salary $ 80,000 • Interest paid $ 10,000 • Forgone rent $ 10,000 • Raw materials $ 50,000 • Other payments $ 20,000 • Forgone interest $ 7,000Macmillan Learning Quantity (units) Fixed cost ($) Variable cost ($) Total revenue ($) 10 100 11 100 12 888 36 1,000 74 1,100 100 145 1,200 13 100 14 100 15 100 16 100 17 100 88888 202 1,300 300 1,400 435 1,500 588 1,600 774 1,700 a. What is the marginal revenue received from the 11th unit? b. What is the marginal cost of producing the 11th unit? $ c. What price does this firm charge for each hard drive? d. How many units should this firm produce to maximize profits? e. When profit maximizing, what is this firm's profit? $ per unit units3. Suppose that the total revenue function for a commod- ity is R = 64x- 0.02x². (a) Find R(100) and tell what it represents. (b) Find the marginal revenue function. (c) Find the marginal revenue at x = 100 and tell what it predicts about the sale of the next unit and the next 3 units. (d) Find R(101) - R(100) and explain what this value represents.
- L (workers) 0 1 2 3 4 5 6 7 Q (units) 0 90 210 320 420 510 590 660 MPL (units) FC (S) greater than less than equal to not enough information VC TC AFC AVC ATC MC (S) (S) (S) (S) (S) The average fixed cost of producing 590 gadgets is _____ the average fixed cost of producing 510 gadgets.Price (Per Unit) Pi P₂ P3 Pa 9₁ MC 92 93 94 Quantity (Units per week) (a) ATC Price (Per Unit) D P₁ D₂ Quantity (Units per week) (b) O economic profit is less than zero, and firms will exit. O economic profit is greater than zero, and firms will expand production. there are zero economic profits, and there will be no entry or exit. Othere are zero economic profits, and firms will exit. D₂ D₁ Individual cost curves are represented in Graph A, while market supply and demand are represented in Graph B. If market demand curve is D2, then in the long run, Da(intel) CORE IS H $ 40 36 32 28 24 20 16 12 8 4 0 Perfectly Competitive Firm MC 0 4 28 8 12 16 20 24 20. What is the minimum price below which this firm will definitely shut-down production? (a) $4 (b) $10 O (c) $12 (d) $14 (e) $22 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Type here to search St ATC AVC 32 D Q Save All Answers
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