QUESTION 4: The graph below shows the demand and costs data for a one of firms operating in a market with a highly differentiated product All underlying work must be shown MC ATC $11.50 $10.00 $9.00 $6.00 MR 200 400 700 900 Quantity A) Refer to the graph above. If the firm in the graph above maximizes profit, it will produce _units of output and charge price per unit. A) 400; $10 B) 600; $6 C) 900; $9 D) 600; $11.50 B) Refer to the graph above. At the profit maximizing output level, the firm from above will earn: A) zero economic profit. B) $900 total economic profit. C) $2,700 economic profit. D) $2,700 economic loss. C) Refer to your answer above. You can conclude that if there are no barriers to entry: new firms will enter this industry in the long run in a search of profit. b) existing fims will exit this industry in the long run because of the short-run losses. c) this industry is in long-run equilibrium, and there are no incentives to enter or exit. d) the price per unit of output is equal to the minimum possible average total cost. Price

QUESTION 4: The graph below shows the demand and costs data for a one of firms operating in a market with a highly differentiated product All underlying work must be shown MC ATC $11.50 $10.00 $9.00 $6.00 MR 200 400 700 900 Quantity A) Refer to the graph above. If the firm in the graph above maximizes profit, it will produce _units of output and charge price per unit. A) 400; $10 B) 600; $6 C) 900; $9 D) 600; $11.50 B) Refer to the graph above. At the profit maximizing output level, the firm from above will earn: A) zero economic profit. B) $900 total economic profit. C) $2,700 economic profit. D) $2,700 economic loss. C) Refer to your answer above. You can conclude that if there are no barriers to entry: new firms will enter this industry in the long run in a search of profit. b) existing fims will exit this industry in the long run because of the short-run losses. c) this industry is in long-run equilibrium, and there are no incentives to enter or exit. d) the price per unit of output is equal to the minimum possible average total cost. Price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a competitive firm with total costs given by T C(q) = 100 + 10q + q^2. The firm faces a market price p = 50. (a) Graph the AT C, AV C, MC, and MR curves in a single graph, and indicate the profit maximizing level of output. If there are profits, shade the region corresponding to profit and label it. (b) If fixed costs increase from 100 to 500, what happens to the profit maximizing level of output, T R, T C, and π? (c) If fixed costs increase from 100 to 500, should the firm continue to operate in the short-run? What about the long-run?
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1) Briefly explain how the total revenue for a profit-seeking film is determined 2)Briefly explain what is meant by the term "fixed costs" and provide three examples of same. What determines a firm's level of fixed costs? 3)Contrast the rold of fixed costs and variable costs in economic decisions about future prodiction 4)Briefly compare and contrast the perceived demand curve for a monopolitically competitive firm and a perfectly competitive firm. 5)Briefly explain what quantity a profit maximizing monopolistic competitor will seek. Why not this type of competitive frim is productively efficient?
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Refer to the graph shown, which depicts a perfectly competitive firm that maximizes profit. If the prevailing market price is $4: Price 8765432-0 1 ง C MC ATC 0 20 40 60 80 100 120 Output per day Show Transcribed Text LRAC Group of answer choices Economic profits are $500 and the quantity supplied from the firm is 200 units per day. Economic profits are $0 and the quantity supplied from the firm is 100 units per day. Economic profits are $100 and the quantity supplied from the firm is 100 units per day. Economic profits are -$100 and the quantity supplied from the firm is 80 units per day.
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $1.71 is only 150,800. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine…
(Figure 10-3)What is the maximum economic profit this firm depicted in Figure 10-3 will be able to earn? Group of answer choices $600 $200 $400 $0
:9: Refer to the table below, which presents a cost schedule for a perfectly competitive firm. Quantity 10 11 12 13 14 15 16 If the price that the firm charges for its output is $9, calculate the marginal revenue associated with selling an additional unit of output. Express your answer without units (e.g., if your answer is "$7", type "7" in the answer box). Type your answer... F1 2 W S F2 *3 E D JAN 5 20 F3 $ 4 000 000 F4 R F % 5 T F5 6 FG MacBook Air Y H Total cost ($) 13 25 36 46 55 63 70 & 87 tv F7 U * ➤11 8 FB A -0 9 K P1 F9 W Aa ) O F10 L zoom P FIL 10 Next = F12 # M htm
QUESTION 2 Figure 2 shows on the long run cost and revenue cuove. Figure 2 RM MC AC 14 10- D = AR EMR 10 11 12 Output (Q) Answer the following questions based on the long run cost and revenue curves in Figure 2. What type of market structure does the firm operate in? Why? b. What is the profit maximizing output and price. c. Compute total revenue and total cost at equilibrium. d. Calculate and determine the type of profit or loss at equilibrium.
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Use the information for a competitive firm in the table below to answer questions 1 through 3. Quantity Total Revenue Total Cost MR MC $0 $ 32 5 45 40 $9 $8/5 54 49 $9 $9 7 63 59 $9 $10 8 72 70 $9 $11 1. At which quantity of output is max Profit? ANSWER: Q= 6units, where MC=MR 2. The maximum profit available to this firm is ANSWER: at Q=6, TR-TC= $5. 3. If the firm finds that its marginal cost is $11, it should increase or decrease production to maximize profit? LO