Not use ai please MCATC Q30.0028.00-a26.00-24.00-AVC G22.00-The figure to the right represents the cost structure for a perfectly competitive firm with its average totalcost (ATC) curve, average variable (AVC) curve, and marginal cost (MC) curve. Fixed costs are $50.00Suppose the market price is $21.00 per unit.Characterize the firm's profitIf the firm produces output, then it willShould the firm instead shut down in the short run?In the short run, the firm shouldOA. shut down because price is less than fixed costsOB. shut down because price is greater than average variable costOC. shut down because price is less than average total cost.OD. continue to produce because price is greater than average variable costO E. continue to produce because price is greater than average fixed cost.Price and cost20.00-18.0016.00-14.00-12.00-10.00-8.00-6.004.00-2.00-0.00+Quantity

Analysis:The graph provides cost curves:MC (Marginal Cost)ATC (Average Total Cost)AVC (Average…

Answered: MC ATC Q 30.00 28.00- a 26.00- 24.00-…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 4SQ

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The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box. Instructions: Enter your answers as a whole number a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Quantity of Gif Boxes 5 10 15 20 25 30 Choco Lovers Cost and Revenue TC ($) MC ($) MR ($) 55 4 57 4 62 4 72 92 122 30 gift boxes 1 0.50 1 2 4 6 4 4 4 What will the new profit or loss be per gift box? AR ($) 4 4 4 Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number. b. Given a price of $4 per gift box, how many boxes of chocolate should Choco Lovers produce? 25 gift boxes What will the profit or loss be per gift box? per gift box c. Suppose that Choco Lovers raises the price to…
what is the profit-maximizing output quantity?

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