QUESTION 9The figure shows the short run conditions of a firm in a perfectly competitive market. In the long run, ---will------------the industry so that the market supply curve shifts to the ------------until prices-----------sufficientlyto allow all firms to make a normal profit only.Unit revenue and costR13R101200a) Existing firms, exit, right, dropb) New firms, enter, right, dropc) Existing firms, exit, left, rised) New firms, enter, left, riseMCACAR=MRE₁Quantity

Given that the average cost (AC) curve is above the average revenue (AR) or marginal revenue (MR),…

Answered: QUESTION 9 The figure shows the short…

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

II. Giant Screen TV, Inc Giant Screen TV, Inc., is a San Diego-based importer and distributor of 60-inch screen, high-resolution televisions for individual and commercial customers. Revenue and cost relations are as follows: TR = $1,800Q - $0.006Q² TC = $12,100,000+ $800Q + $0.004Q²
$ P₁ P₂ P3 a) b) 91 between 1 and P c) between Py and Py 92 In what price range would the firm in the graph choose to operate at a loss? between P3 and P !MC 1 1 93 AC q
Q1.b. In response to a request from your immediate supervisor, you have prepared a CVP graph portraying the cost and revenue characteristics of your company's product and operations. Explain how the lines on the graph and the break-even points would change if (1) the selling price per unit decrease, (2) fixed cost increased throughout the entire range of activity portrayed on the graph, and (3) variable cost per unit increased. S18000 $1.000 52000 $100.000 $15.00 $50,00 525.000 50 la T S speakers nak
620 In the following demand and cost functions & is selling ponce ad Qis quantity in the Thousand P = 30-29 Tc = Q +5Q-30 0,570 what is the optimal prices maximize profits? to 48,000 wer is incorrect. rect answer is:
(Table) According to the table, marginal revenue for the first unit is: QP 0 20 1 2 18 16 3 13 4 10 5 7 6 4 $0. $18. $20. $16. 30
You are the marketing manager of the Business Unit (BU) that produces polystyrene (which is an input to making lightweight rigid foam). The current Demand/Supply balance, as measured by the ICIS price, is $800 per ton of polystyrene. The BU has 2 plants and can produce a total of 1800 tons. At full capacity utilization, the BU’s average variable cost equals $1300/t and its average total cost equals $1700/t.Plant 1 has a capacity of 600 tons and a marginal cost of $900/t. Plant 2 has capacity of 1200 tons and a marginal cost of $1500/t. Due to exit of one competitor, you expect next year’s polystyrene ICIS price to increase to $1200. 1. How much volume of polystyrene do you expect to produce next year, if any? 2. What is your expected contribution margin for next year? 3. What is your expected profit for next year?
Explain
Question 34 A cell phone factory has a total production cost of Cx) - 150x+10000 and a revenue function R(x) - 200x, where x represents the number of cell phones made or sold. Determine the break-even point for this factory. Break-even point: (20,220) Break-even point: (200,40000) Break-even point: (40000,200) Break-even point: (220,20)
Tropical Leisure Limited has been making high quality Caribbean leisure wears for over twenty-fiveyears, in old rented premises located in the heart of the Barbadian capital of Bridgetown. Thecompany has a flexible labour force of about twenty employees and three directors, only one ofwhom, namely Mr. Grant, the managing director, is fully active in the business.The company specializes in leisure and swim wear garments. Their current range consists of teeshirts, shorts, skirts and bath suits in rich vibrant Caribbean colours and styles for men, women andchildren. The company capacity is 400-500 garments per week, depending on style and continuityof the production run, but additional floor space and machines could be brought in quickly to raiseproduction levels to a maximum of 1000 garments weekly if required.Trade sources estimated that the Barbadian market was valued at US$ 1.5 billion in 2010 but sincethen inflation and recession has deflated the market, resulting in many smaller…
Solve in 15mins ASP

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS