Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck).  If the market price of a cup of coffee is $2.00, what Q would a profit-maximizer choose to produce? Q TC 0 $30 10 $50  20 $63  30 $73  40 $78  50 $95  60 $120

Q: Mortimer makes picture frames. From the consumers' perspective, his frames are not different from…

A: In a competitive market, firms are price taker.    Profit is maximum when the firm produces at P =…

Q: uppose that the maket for air fresheners is a perectly competitive market. The following graph shows…

A: Perfectly competitive market structure in which there are large number of buyers and selling…

Q: The table below shows the cost of a firm that produces handmade pottery vases in a competitive…

A: Competitive market: - It is a one type of market condition where there are many buyers and many…

Q: Farmer Jones grows sugar. The total revenue, marginal revenue, total cost, and marginal cost of…

A: Profit is the amount that any firm earns after all the deductions, and is given by:

Q: Suppose Rosa runs a small business that manufactures frying pans. Assume that the market for frying…

A: Profit maximization refers to the process business firms go through to guarantee the best result and…

Q: The market for paperback detective novels is perfectly competitive. We have two types of book…

A: Given Information Supply curve for Small Press publisher's    P=76+5Q.  Large Press publisher's…

Q: Will, Jill, and Phil are all wheat farmers. The wheat industry is perfectly (purely) competitive.…

A: The short-run supply(ss) curve of the industry is a summation of quantity supplied by every producer…

Q: The industry says you can sell 5 sweaters for $25, 6 sweaters for $36, or 7 sweaters for $40.  Using…

A: Economic profit is given by the difference between the revenue from sales and the cost of inputs.…

Q: R K COSTS AND REVENUE (Dollars per romper) 8 S 2 S QUANTITY (Rompers) ange points (square symbol) to…

A: Total revenue(TR) is the product of price and quantity . MR is the change in TR when an additional…

Q: mer Brown's marginal cost of production is illustrated in the table. Boxes of Peaches Market Price…

A: In a competitive firm there are large number of firms producing identical products thus acts as a…

Q: The coffee industry is comprised of many firms producing an identical product. Market demand and…

A: An industry comprised of many firms producing an identical product ia a perfect competitive…

Q: The curves show the marginal cost (mc), average variable cost (avc), marginal revenue (mr), and…

A: A competitive market is a type of market structure in which the firm is a price taker, there are a…

Q: Bob is a general contractor in the construction industry. Suppose the construction industry is…

A: Bob is a general contractor in the construction industry. Suppose the construction industry is…

Q: In the long run, some firms will respond by Shift the demand curve, the supply curve, or both on the…

A: Suppose that the seitan industry is initially operating in long-run equilibrium at a price level of…

Q: Tony sells pet collars at the Sunday markets. Assume the market for pet collars is perfectly…

A: Economic profit measures the net benefit or loss of an activity after considering both explicit and…

Q: Suppose the market for peaches is perfectly competitive. The short-run average total cost and…

A: A perfectly competitive firm is a price taker. It accepts the market price as given.

Q: a. If a competitive firm is making loss in the short run, and it is selling a (100) units of a good…

A: Given: Units sold=100 Selling price=SR 9 AVC=SR 10 Quantity Total Cost Price  1 64 40 2 80 40

Q: Latoya runs a print shop that makes posters for large companies. It is a very competitive business.…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: Suppose that the chemical lab could use a different production method that involves recycling water.…

A: Property rights play a crucial role in shaping firms’ incentives. If the boat tours hold the rights…

Q: A firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) =…

A: In short run a competitive firm will produce that level of output where the price (P=MR) is equal to…

Q: The relationship between the firm's average variable, average total, and marginal cost curves above:…

A: The market is a perfectly competitive market structure, due to which the firm has a horizontal…

Q: 9 D D D D Suppose the market for peaches is perfectly competitive. The short-run average total cost…

A: In case of perfect competition there are large number of firms producing identical products. An…

Q: The total cost function of Novo Nordisk, an obesity treatment monopolist, is given by TC = 30 - 2Q +…

A: A monopoly market is a market structure in which a single seller, known as a monopolist, dominates…

Q: What is the profit maximizing level of output for the firm? How much profit is this firm earning?…

A: Profit maximizing level of output is achieved where price and quantity are equal i.e., in…

Q: Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a…

A:

Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…

A: A market structure known as perfect competition is defined by a large number of companies producing…

Q: Assume that the market for oranges is perfectly competitive. Carmen is an orange producer and her…

A: Shut down refers to the situation under which the firm temporarily closes it production activities…

Q: Suppose that you have a management job at a firm like Estrella River Ranch, a beautiful vineyard and…

A: STEP  BY STEP ANALYSISStep 1: Calculate the total revenue.If demand is high, the firm sells 300 tons…

Q: Farmer Jones grows sugar. The total revenue, marginal revenue, total cost, and marginal cost of…

A: The huge number of sellers and buyers with homogeneous products is referred to as perfect…

Q: The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a…

A: The marginal-cost is the cost incurred on the production of an additional-unit of output. And the…

Q: A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of…

A: Given Information: The perfectly competitive firm produces output at which MR = MC. TC = $830,000 VC…

Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…

A: Average cost is the ratio of the total cost and the total output produced. Whereas, the marginal…

Q: Suppose Madison operates a handicraft pop-up retail shop that sells rompers. Assume a perfectly…

A: Profits can be described as the financial gain of a firm when the total revenue (TR) surpasses the…

Q: $11.00 MC $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 3 4 5. 6 8 10 Quantity of Output (q)…

A: Pierre is a photographer in a perfectly competitive market . The graph shown above gives his…

Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).