MC E ATC AVC Output igure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of the point would Penny's Parasols be certain to e down? - C, D, or E. Explain: gure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive fırm. At which point(s) would Penny's Parasols endure economic s, but continue to produce in the short run? A, C, or E. Explain: hich point in Figure 8.7 represents a break-even situation for a perfectly competitive firm? . C, D, or E. Explain:

MC E ATC AVC Output igure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of the point would Penny's Parasols be certain to e down? - C, D, or E. Explain: gure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive fırm. At which point(s) would Penny's Parasols endure economic s, but continue to produce in the short run? A, C, or E. Explain: hich point in Figure 8.7 represents a break-even situation for a perfectly competitive firm? . C, D, or E. Explain:

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 13QP

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3.3 Frances sells pencils in the perfectly competitive pencil market. Her output per day and her costs are as follows: Variable Cost Output per Day Total Cost АТС AVC MC $1.00 2.50 1 2 3.50 3 4.20 4 4.50 5.20 6. 6.80 7 8.70 8. 10.70 a. If the current equilibrium price in the pencil market is $1.80, how many pencils will Frances produce, what price will she charge, and how much profit (or loss) will she make? (1)
Frances sells pencils in the perfectly competitive pencil market. Her output per day and her costs are as follows: Output per Day Total Cost Variable Cost АТС AVC MC $1.00 1 2.50 1.50 2.50 1.50 1.5 3.50 2.50 1.75 1.25 1 3 4.20 3.20 1.40 1.067 0.7 4 4.50 3.50 1.125 0.875 0.3 5.20 4.20 1.04 0.84 0.7 6.80 5.80 1.33 0.97 1.6 7 8.70 7.70 1.24 1.1 1.9 8 10.70 9.70 1.34 1.21 If the current equilibrium price in the pencil market is $1, how many pencils will Frances produce, what price will she charge, and how much profit (or loss) will she make?
2:09:16 5 O A firm's variable cost is zero when: the quantity produced is zero. O fixed costs are zero. O total revenue is a maximum. O total costs are zero.
QUESTION 17 Which of the following will not hold true for a competitive firm in long nun equilibrium? OAP= minimum ATC O B. MC = minimum ATC OCP = AF C OD.P= MC
The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 / / / $ 100 1 $ $ $ 130 2 150 3 180 4 220 5 270 6 330 7 440 a. Complete above the table. b. What is the break-even price? Break-even price: $ c. What is the shutdown price? Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; (Click to select) Loss Profit : $ e. If the market price of the product is $110, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; (Click to select) profit loss : $
58 When a perfectly competitive market is in long-run equilibrium, the firms supplying in that market are earning zero economic profit. E of Select one: OTrue OFalse
Next question ice and cost (dolars per par) The graph shows the long-run situation facing a producer of running shoes. In the market for running shoes, all the firms face a similar demand curve and have similar cost curves 120- Draw a vertical arrow that shows the firm's markup at the profi-maximizing quantity. Label R. MC t004 What is a fim's markup? /ATC A fem'u markup is the amount by which exceeds OA price; average total cost 60 OB. price, marginal cost OC. average total cost marginal revenue OD. average total cost marginal cost 20- Describe the market of a firm in perfect competition MR O 25 7 100 1is e ths 200 zis Quantity (pain of shoes per week) A firm in perfect competition has OA a markup similar to a firm in monopolistic competition OB. no markup > Draw only the objects specfied in the question Oc. a negative markup O D. a markkup similar to a monopoly
Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 10 cents, then this firm: 0.35 Marginal Cest 0.30 0.25 0.20 Average Tetal Cost 0.10 0.05 10 20 30 40 50 e 70 B0 90 Quantity oughnuts/ay O should shut down. O will earn an economic loss. O should produce 50 doughnuts. O should shut down in the long run.
3. The components of marginal revenue Asim's HockNLadder is the only company selling fire engines in the fictional country of Alexandrina. Asim initially produced seven trucks, but then decided to increase production to eight trucks. The following graph gives the demand curve faced by Asim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Asim must lower the price from $100,000 to $50,000 per truck. Notice that Asim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial seven engines because they are all sold at the lower price. use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial seven engines by selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. PRICE (Thousands of dollars per fire engine) 250 221 200 179 150 125…
The following graph shows the marginal cost curve for Oiram-46, a competitive firm producing magic hats. Suppose that currently, the prevailing market price is $1.50 per magic hat. On the following graph, use the blue points (circle symbol) to plot Oiram-46's price line. Then use the grey points (star symbol) to indicate the profit maximizing quantity of output produced by Oiram-46. TOTAL COST (Dollars) he 12 11 10 a 8 N 3 2 1 0 + Oiram-46 7 0 MC + H 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit-maximizing quantity is Demand Profit maximizing quantity ? magic hats, average revenue is $ and marginal revenue is
The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing differe quantities of chocolate gift boxes. The market price for a box of chocolates is $4 per box. Instructions: Enter your answers as a whole number. a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Choco Lovers Cost and Revenue Quantity TC MC MR AR of Gift Boxes ($) ($) ($) ($) 55 1 10 57 0.50 15 62 1 20 72 25 92 4 30 122 6.
Refer to the above graph for a purely competitive firm in the short run. The price of the firm's product is given by: TC TR 9,800 S,600 2,100 300 800 1,400 Output (Q) Select one: O A. $7 OB. $10 O C. $8 OD. $9