Price, marginal revenue, marginal cost, average total cost W D B U MC J KL ATC a) The firm's economic profit is area = b) Is this firm operating in the short or long run? MR Demand N Quantity (per period)

Price, marginal revenue, marginal cost, average total cost W D B U MC J KL ATC a) The firm's economic profit is area = b) Is this firm operating in the short or long run? MR Demand N Quantity (per period)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 32CTQ: How does fixed cost affect marginal cost? Why is this relationship important?

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How does fixed cost affect marginal cost? Why is this relationship important?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
OutputAFC AVC АТС MC 1 100 40 140 40 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38 58 45 16.67 40 56.67 50 A price taking firm has the above cost data. The price of output is $34. What level of output should the firm choose to maximize profit in the short run?
A computer company produces affordable, easyto-use home computer systems and has fixed costs of$250. The marginal cost of producing computers is $700for the first computer, $250 for the second, $300 for thethird, $350 for the fourth, $400 for the fifth, $450 for thesixth, and $500 for the seventh.a. Create a table that shows the company’s output,total cost, marginal cost, average cost, variablecost, and average variable cost.b. At what price is the zero-profit point? At whatprice is the shutdown point?c. If the company sells the computers for $500, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.d. If the firm sells the computers for $300, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.
Question 4 Charlie Co. sells pastries and its production and cost table is given below. A worker costs $100 a day, the firm has fixed costs of $200. L MP MC TC АТС 1 20 2 50 3 90 4 120 5 140 6 150 155 a. Complete the table above b. Compare the average total cost and the marginal cost and explain the relationship c. Describe the methuds that can be used to determine where profit is maximized? IN
the choices for the three "quantity" column are (6000, 10400, 12000). the choices for the "price: column are (20,28,34,50) the choices for profit are (negative,prositve, zero) the choices for long run decision are (exit the industry, stay in business, stay or exit) please also do the rest of the questions. thankyouuuu
What is Economic Profit as compared to the Financial Profit? To compute Economic Profits, which costs are used? Give example
Give typing answer with explanation and conclusion
$22 00 20.00 18.00 Which size bookstore is more likely to experience diseconomies of scale? Long-run Average cost OA Abookstore selling 1,000 books per month B. Abookstore seling 20,000 books per month C. Abookstore selling 40,000 books per month 1,000 20.000 Quantity of books sokd per month 40,00D,000 D. Abookstore seling 80,000 books per month Average cost
Ball Bearings, Inc. faces costs of production as follows:QuantityTotal Fixed CostsTotal Variable Costs0$100$0110050210070310090410014051002006100360a. Calculate the company's average fixed costs, average variable costs, average total costs, and marginal costs at each level of production.b. The price of a case of ball bearings is $50. Seeing that he can't make a profit, the chief executive officer (CEO) decides to shut down operations. What is the firm's profit/loss? Was this a wise decision? Explain.c. Vaguely remembering his introductory economics course, the chief financial officer tells the CEO it is better to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity. What is the firm's profit/loss at that level of production? Was this the best decision? Explain.
Answer the attached question
Please follow instructions and follow graph. Show work