Indicate whether you agree or disagree with the following statement. The marginal cost curve of any profit-maximizing firm is the firm's short-run supply curve. O A. Disagree: The MC curve is the demand curve below minimum AVC. O B. Agree: The MC curve is the supply curve below minimum AVC. OC. Disagree: The MC curve is the demand curve above minimum AVC. OD. Agree: The MC curve is the supply curve above minimum AVC. Ay quantity 7 units total cost is $194 and at quantity 8 units total cost is $208, what is the marginal cost at 8 unit? How you arrived to your solution? How you define marginal cost? C B I + U Write your answer SI @ B I U S Ix E Write your answer = At 5 units of production, if total variable cost is $75 and total fixed cost is $100, what is value of (a) total costs (b) average cost, (c) average variable cost and (d) average fixed costs? #11 x₂ x² Insert Formula E 1 x₂ x² Insert Formula

Indicate whether you agree or disagree with the following statement. The marginal cost curve of any profit-maximizing firm is the firm's short-run supply curve. O A. Disagree: The MC curve is the demand curve below minimum AVC. O B. Agree: The MC curve is the supply curve below minimum AVC. OC. Disagree: The MC curve is the demand curve above minimum AVC. OD. Agree: The MC curve is the supply curve above minimum AVC. Ay quantity 7 units total cost is $194 and at quantity 8 units total cost is $208, what is the marginal cost at 8 unit? How you arrived to your solution? How you define marginal cost? C B I + U Write your answer SI @ B I U S Ix E Write your answer = At 5 units of production, if total variable cost is $75 and total fixed cost is $100, what is value of (a) total costs (b) average cost, (c) average variable cost and (d) average fixed costs? #11 x₂ x² Insert Formula E 1 x₂ x² Insert Formula

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.6P

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The table provides data on a market demand schedule (top two rows) and a firm's average and marginal cost schedules (bottom four rows). 1. What is the firm's shutdown point? A firm will stop producing an output in the short run when the market price of the good is O A. equals MC B. equals ATC C. below minimum ATC D. below minimum AVC This firm's shutdown point is at a market price of $ per unit and its profit-maximizing output is units. Price P ($) Quantity Firm's output MC ($) ATC ($) AVC ($) 24 20 16 12 8 4 3,000 4,000 5,000 6,000 7,000 8,000 1 2 3 4 5 6 unit units units units units units 11.00 11.13 12.00 13.63 16.00 19.13 13.50 12.25 12.00 12.19 12.70 13.50 11.63 12.25 13.13 11.25 11.13 11.25
.A fisher sells salmon in a perfectly competitive market and faces a price of $5 per kg at possible weekly outputs of between O and 5000 kg. a. What is the fişher's marginal revenue in this output range? b. Because the fisher operates in a perfectly competitive market, how are marginal revenue and price related? C. Draw the fisher's marginal revenue curve on a graph. Plot only the endpoints at O and 5000 kg to draw the curve.
A perfectly competitive firm can produce its current level of output at an average total cost of $10 and a marginal cost of $8. If the market price of the product is currently $8, what should the firm do? a. The answer depends upon the relationship between price and average variable cost. The firm should shut down if average variable cost is $8 or greater, but the firm should continue to produce the current level of output if average variable cost is less than $8. O b. The firm should definitely shut down since average total cost exceeds price. Oc. The firm should continue to produce, but they should decrease production in order to increase profit. O d. The firm should increase production in order to increase profit. 0= Icon Key mentMain.do?takeAssignmentSessionLocator=assignment-take,53ef7eec-ce82-423c-a5cf-a72630d672e7#
Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.
Use the information in the graphs below to answer the following questions SAb $/gal 25- S1 25 H MC ATC 20 20 15 15 P1 10 10 P2 5 4 6 8 10 2. Thousands of gal/week 1 3 Millions of gal/week What is the long-run equilibrium price in this market? Please enter your answers as whole numbers with and do not type out your answer in words (ie. $5 or $5.00 not "Five dollars"). How many gallons per week will the individual firm produce to maximize profits in equilibrium? Please enter your answers as whole numbers with no extra words (ie. 5000 not "5000 gallons/week"). What is the individual firm's long run economic profit?
The figure below shows the supply and the demand for a good (left) and the cost curves of an individual firm in this market (right). Assume that all firms in this market, including the potential entrants, have identical cost curves. Initially, the market is in equilibrium at point A. Price 6 Cost 17 D 8 10 12 Quantity ATC O the price is $1.00 and the quantity sold is 6 units O the price is $3.00 and the quantity sold is 2 units O the price is $2.00 and the quantity sold is 2 units O the price is $2.00 and the quantity sold is 4 units Quantity Refer to the figure above. Suppose that the market has reached the long-run equilibrium. Then, due to news of the product's defects and recall, the demand falls by 2 units at each price. The market will tend toward the new long run equilibrium where
3. Discuss the relationship between the Perfectly Competitive Long-Run Equilibrium and the First Fundamental Welfare Theorem.
I need help with econ multiple hw questions asap! 60) When a firm in a competitive market produces 15 units of output, it has a marginal revenue of $8.00. What would be the firm’s total revenue when it produces 8 units of output? A. $64.00 B. $48.00 C. $6.00 D. $4.80 59) The competitive firm’s long-run supply curve is that portion of the marginal-cost curve that lies above which average cost? A. sunk cost B. total cost C. variable cost D. fixed cost
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Suppose the competitive tablet market is in long-run equilibrium. If at this equilibrium, the typical firm produces 20,000 tablets per month, total costs for this production are $1,800,000, and the minimum of the average variable costs is $70, what price will Instructions: Enter your responses as a whole number. a. induce entry into the market? When the price rises above $ b. cause firms to shut down production in the short run?