Price and costs (dollar) 16 12 0 90 130 MC ATC 210 170 Quantity (units per day! MR The figure above shows the marginal revenue and costs of a perfectly competitive firm. How many units the firm should produce to maximize its profit?
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- Price and cost (dollars per mug) NA a ∞ ONA a 16 0 5 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) $160; $280 The figure above shows Mollie's Mugs' costs producing mugs. The mug market is perfectly competitive. If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is per day and it incurs an economic loss of per day. $8; $14 MC $0; $120 ATC AVC $0; $6Graph represents the cost structure of an individual firm in a perfectly competitive market. If the price decreases to $25, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output.Please show working and calculations.
- Question 3 The following graph shows the price, marginal cost, and average cost curves for a firm. MC Price (RM) ATC 40 27 16 12 MR 250 500 570 Quantity (Units)Costs MC (per pound) ATC AVC 3.00 2.25 1.50 150 180 225 Quantity (pounds) The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the following questions. Assume the market price is $3 per pound. a. What is the lowest price at which the apple producer will supply output in the short run? $ per pound. b. What is the firm's profit-maximizing (loss-minimizing) output? c. Is the firm earning a profit or a loss? loss profitE2
- Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost schedule in the table below. Apex’s product sells for $200 per unit. Quantity (units) 0 1 2 3 4 5 6 7 8 9 10Total Variable Cost (TVC) 0 100 180 220 300 390 500 640 800 1000 1250Answer the following questions:a. What is the profit-maximizing level of output? Calculate Apex’s profit.b. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?c. If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?d. Comment on your answers to parts (2) and (315. The table below shows cost data for producing different amounts of refrigerators. Use the given information to answer the questions below. Quantity Total Cost Variable Cost Marginal Cost Average Variable Cost Average Total Cost in $ in $ in $ in $ in $ 241 0 271 30 361 120 491 250 681 440 901 660 0 10 What is the profit (loss) at that level of production? 20 30 40 50 How many refrigerators would a competitive firm produce if the market price was $19? 3 9 13 19 22 3.00 6.00 8.33 11.00 13.20 27.10 18.05 16.37 17.02 18.02Price and cost (dollars) Use the following information to answer the next 4 questions: The graph below shows cost curves for a perfectly competitive firm. Suppose that the market price is $2.60. 2.60 1.60 1.50 0.80 0.70 0.60 500 800 1100 Output SMC ATC AVC Question A firm producing 800 units of output is earning the maximum amount of profit, $880. is earning the maximum amount of profit, $2,080. should instead produce 500 units of output in order to earn profits of $500. should instead produce 1100 units of output in order to earn profits of $1,100.
- why the answer is 150. Please answer correct calculation asap plz Don't answer by pen paper plzThe graph below displays the short-run cost curves for Paola's Pears, a small farm competing in the perfectly competitive pear market. $7 MC ATC AVC 100 200 300 400 500 600 700 800 Pounds of Peara (a) If the market price for a pear is $5, how many pears would Paola produce to maximize her profit? [ Select] (b) At a $5 market price, what is the maximum profit (or minimal loss) Paola would earn? [Select] Price of Pears $6 $5 34 $3 $2 S >Figure: Cost Curves for Corn Producers Price, cost of bushel $30 26 MC 22 18 ATC AVC 14 10 1 3 4 7 Quantity of corn (bushels) Reference: Ref 12-3 (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce of corn and earn an ec omic equal to 2 bushels; profit; $0 2 bushels; loss; just more than $80 per bushel 3 bushels; profit; loss, -$15 4 bushels; profit; just less than $80 per bushel