7 . Problems and Applications Q8The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses.Which of the following statements is true about the price of fertilizer? Check all that apply.The price of fertilizer must be less than average total cost.The price of fertilizer must be less than average variable cost.The price of fertilizer must be equal to marginal cost.The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. Price and CostsMCFirm-+LAVOIIQuantityIf firms in the market are producing output but are currently making economic losses,in the market, andindicates the corresponding supply curve.The total quantity supplied to the market will decrease.Average total cost will decrease.The price of fertilizer will increase.PriceThe quantity supplied by each firm will decrease.DemandMarginal cost will decrease.MarketIIQuantityS₂Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the longrun? Check all that apply.S(?)illustrates the present situation for the typical firm

A large number of sellers and buyers in a market selling homogeneous products is known as a…

Price and Costs MC Firm ATC LAVO T I 11 Quantity @ ms in the market are producing output but are currently making economic losses, e market, and indicates the corresponding supply curve. The total quantity supplied to the market will decrease. Average total cost will decrease. The price of fertilizer will increase. Price The quantity supplied by each firm will decrease. O Marginal cost will decrease. Demand Market Quantity S₂ S ming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long Check all that apply. (?) ▼illustrates the present situation for the typical firm

Price and Costs MC Firm ATC LAVO T I 11 Quantity @ ms in the market are producing output but are currently making economic losses, e market, and indicates the corresponding supply curve. The total quantity supplied to the market will decrease. Average total cost will decrease. The price of fertilizer will increase. Price The quantity supplied by each firm will decrease. O Marginal cost will decrease. Demand Market Quantity S₂ S ming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long Check all that apply. (?) ▼illustrates the present situation for the typical firm

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Farmer Lee grows strawberries. The average total cost and marginal cost of growing strawberries in the long run for an individual farmer are illustrated in the graph to the right. Suppose the market price is $7.05 per box. If so, then farmers will strawberries until the market price is $ number rounded to two decimal places.) per box. (Enter a numeric the market for a real enter exit Price and cost (dollars per box) 10- 9- 8- 5- 3- 2- 1. 0 MC ATC 10 20 30 40 50 60 70 80 90 100 Quantity of strawberries (boxes per week) o
Suppose that the market for dress shirts is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. (?) 50 45 Profit or Loss 40 35 30 АТС 25 20 15 10 AVC MC 4 8 12 16 20 24 28 32 36 40 QUANTITY OF OUTPUT (Shirts) PRICE AND COST (Dollars per shirt)
6
O Macmillan Learning The graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Place the market supply curve at the correct location on the graph. Then, consider what would happen to the market if a third supplier enters the market, holding all else constant. Price per Stuffed Animal($) 10 9 8 50 2 1 Market for Stuffed Animals Firm 1 Firm 2 Market 0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Quantity of Stuffed Animals A third firm would mean market supply increases.
Figure 12-6 Price (dollars per pound) Market 3 price 2 0 10 20 30 MC ATC D=MR 40 Quantity (thousands of pounds) Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his profit Jason should keep production at 20 thousand pounds. O increase production to the output rate indicated by point e. increase production to the output rate indicated by point d. O decrease production to the output rate indicated by point a.
Quantity of Miami Dade Shades 1st pair 2nd pair 3rd pair 4th pair Marginal Cost (dollars) producer surplus will equal $105. there will be a surplus; as a result, the price will fall to $95. $60 95 140 185 Refer to Table 4-4. The table above lists the marginal cost of sunglasses by Miami Dade Shades, a firm that specializes in producing designer sunglasses. If the market price for a pair of Miami Dade Shades sunglasses is $130, A they will produce three pairs. B producer surplus from the first pair is $35.
PRICE A பயடு X Figure 16-8 B T LL L QUANTITY M MC ATC Demand MR Refer to Figure 16-8. Which of the following best describes the profit-maximizing outcome for the firm depicted her a. This firm is in long run equilibrium and will continue to earn zero profit. b. This firm is earning zero profit in the short run, but will earn a positive profit in the long run. c. This firm is incurring a short-run loss, but will earn zero profit in the long run. d. This firm is earning a short-run profit, but will earn zero profit in the long run.
13. Firms in Competitive Markets The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than average total cost. Price and Costs The price of fertilizer must be less than marginal cost. The price of fertilizer must be equal to average variable cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. MC Firm ATC LAVC II II Quantity (? P P₂ Demand 1 Market Quantity S₁ S₂ (?)
Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. PRICE (Dollars per candle) 8 2 2 3 2 8 36 32 28 24 20 4 0 0 MC 2 ATC AVC 6 4 8 10 12 14 16 QUANTITY (Thousands of candles per day) 18 20 Profit or Loss In the short run, at a market price of $20 per candle, this firm will choose to produce On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. OL candles per day. a n W
The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE(Dollars pertracker) 100 90 70 60 50 40 20 10 0 0 MO ATC AVC 50 60 70 80 10 20 30 40 QUANTITY (Thousands of trackers per day) 90 100 Profit or Loss In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.
3. Johnny Rockabilly has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows: Price Number of CDs $24 10 000 22 20 000 20 20 30 000 18 40 000 16 50 000 14 60 000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a. Find total revenue for quantity equal to 10 000, 20 000, and so on. What is the marginal revenue for each 10 000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would be the price? What would be the profit? c. If you were Johnny's agent, what recording fee would you advise Johnny to demand from the record company? Why?
If the on-campus demand for soda is as follows: Price (per can) $2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 Quantity demanded (per day) 30 40 50 60 70 80 90 100 32 and the marginal cost of supplying a soda is $1.50, what price will students end up pa Instructions: Enter your responses rounded to two decimal places. a. A perfectly competitive market? %$4 b. A monopolized market?