Question 19Refer to Figure 6-2 in Question 16.At the profit-maximizing level of output, what is this firm's profit? (Write just the number, not $) Monopolistic Competition -- Questions 16-20 refer to Figure 6-2 below.This figure depicts a situation in a monopolistically competitive market.Figure 6-2105100 -MC95+90+ATC7570656055304540351510MRDemand5 10 15 20 25 3o 35 40 45 50 ss 60 6s 70 75 80 85 90 95 100105110115120 2

"A monopolistically competitive firm will maximize profits at a point where marginal revenue MR…

Answered: Question 19 Refer to Figure 6-2 in…

Question 19 Refer to Figure 6-2 in Question 16. At the profit-maximizing level of output, what is this firm's profit? (Write just the number, not $)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept: Calculate Profit Farmer Jones grows sugar. The average total cost and marginal cost of growing sugar for an individual farmer are illustrated in the graph to the right. Assume the rharket for sugar is perfectly competitive. According to the graph, farmer Jones will earn profit (positive economic profit as opposed to losses) at any market price above $10 per bushel. (Enter a numeric response using an integer.) Assume that the market price specifically is $24 per bushel. If farmer Jones produces the profit maximizing quantity, what will be her profit? $ To more easily identify the price and quantity, click on the graph to the right, and then adjust the slider to change the price and quantity. Each increment will increase the price by $2. Enter your answer in the answer box and then click Check Answer. 40- 36- 32- MC 28- 24- 20- Price and cost (dollars per bushel) 12- ATC 46 20 30 40 50 60 70 80 90 100 Quantity of Sugar (bushels per month) Question Help Q
Hi, I do not understand why B is the correct answer for number 3. How do I know that this monoply is earning a normal economic profit in the long run?
What would the answer be for 3 and 4?
. Mr DIY is a new small scale palm oil supplier. There are many small scale palm oil suppliers in the market. The price of oil palm is solely determined by the market demand and supply. Describe the market characteristics of this industry. As Mr DIY is a new firm in the market, his firm is facing a problem of revenue lesser than the total variable costs. Illustrate the situation with an appropriate diagram(s). Evaluate the situation of this firm and provide one suggestion for the firm to sustain in the long run.
2. a) George's hair-cutting business is a profit-maximizing, perfectly competitive firm. George provides haircuts at €27 each. His total cost each day is €280, of which €30 is a fixed cost. He cuts hair for 10 customers a day. What can you say about George's short-run decision regarding shutdown and his long-run decision regarding exit? (Explain using less than 100 words).
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Using the graph attached, calculate the firm's profits at the profit maximizing output.
3. The components of marginal revenue Asim's HookNLadder 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 $50,000. PRICE (Thousands of dollars per fire engine) 275 250 Asim 225 200 175…
Answer the questions based on the table below - Complete the table below. - In which market does this firm operate? Explain your reasons. - Determine the equilibrium output. Calculate whether the firm will it be earning a profit or suffering a loss at equilibrium. Quantity(unit) Total Revenue($) Average Revenue($) MarginalRevenue($) TotalCost($) MarginalCost($) 1 10 5 2 18 11 3 24 16 4 28 20 5 30 23 6 30 25
QUESTION 1 DA MC ATC AVC Quantity Observe the graph above. Based on the original price being set at P1, what assumptions would you make about the company's condition and what might happen O The company is profitable and making a very good profit O Company is barely at the break-even point or even below that point because the price of the product is set to cover just its variable costs which means the company would not survive long if the price of P1 remains the same O Company is making small profits in the short run O None of the above.