Р МС $4.00 ATC $3.00 D $2.50 $2.00 MR 3,000 3,500 4,000 The maximum profit under imperfect competition is: -$1,500 а. b. $1,500 $4,500 с. d. $12,000
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- Quantity of commodity A per day Total Variable costs in U. 700 200 60.000 7-25 201 61.000 202 62.500 203 64.000 204 66.000 205 68.500 206 72.000 FO Use Table 1 above to answer question number 25 below New Generation is a perfectly competitive company selling commodity Y at the market price of OMR.500) New Generation Company has fixed costs of OMR 30.000/day and a daily variable cost schedule in Table 1 above. The profit maximizing level of output for New Generation Company is: a. 202 units per day. b. 204 units per day. 206 units per day. d. 205 units per day. 12292-Question 6 The marginal revenue of producing the 4 unit is.. Use the revenue chart provided on the handout. Typed numeric answer will be automatically saved. == Question 7 Perfect Competition: Revenue Chart Q 0 2 3 4 5 TR 0 9 16 21 24 25Assume that Jasmine is a typical firm that produces and sells T-shirts in a perfectly competitive constant- cost industry. The market is currently in long-run equilibrium. The market price is $5, and Jasmine's marginal cost at each level of output is listed in the table below. Quantity of Output 0 1 2 3 4 5 6 Marginal Cost 0 2 3 4 5 6 7 (a) What is Jasmine's pront-imamizing quantity of output? Explain. (b) Draw a correctly labeled graph for Jasmine, and show Jasmine's total revenue at the profit-maximizing quantity, shaded completely. (c) Now assume consumer demand for T-shirts increases. What will happen to the number of firms in the market in the long run? Explain.
- The two figures below show (on the left) the industry supply and demand for wheat and (on the right) the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) for a single firm operating in the wheat market. a. The industry b. A representative firm Price per bushel ($) D₁ 0 D3 a. None of these is correct b. c. The firm will shut down d. New firms will enter the industry 10 12 13 15 Bushels of wheat Bushels of wheat Suppose the demand for wheat is D3 as depicted in the figure above. In the long run, which of the follow is true? The firm will exit the industry MC 0 ATC AVC17 $20 $18 MC АТС I of $16 P = MR $14 $12 $10 $8 AVC $6 $2 $0 200 400 600 800 1,000 1,200 Output (Q) The diagram above shows a Perfectly Competitive firm in the short-run. This firm will maximize its profit by choosing the Output (Q) level: Select one: а. 1,000 b. 800 С. 400 d. 600(1) Consider the following cost schedule for a firm. Quantity Marginal Cost Average Total Cost Average Variable Cost 10 $12 $32 $24 15 $14 $30 $20 20 $16 $28 $16 25 $26 $26 $20 30 $30 $28 $24 35 $40 $32 $30 What is the economic profit or loss for a perfectly competitive firm if the market price is $26? A-0. B- $20. C- negative $20. D-$150. E-negative $150 (2) At what price level would a firm's short-run supply curve begin? A-The price at the minimum of the average variable cost curve B-The price at the profit-maximizing point of production C-The price at the intersection of the average total cost curve and the marginal cost curve D-The price at which demand changes from its elastic to inelastic range E-The price at which marginal cost equals marginal revenue
- Refer to Table 13-1. What is the average total cost of producing one widget? b. $15 a. S1 c. $16 d. $22 Refer to Table 13-1. What is the marginal cost of producing the sixth widget? a. $1.00 b. $3.50 c. $5.00 d. $6.00 Refer to Table 13-1. What is the average variable cost of producing four widgets? a. $2.00 b. $2.50 c. $3.33 d. $5.00 Refer to Table 13-1. What is the marginal cost of producing the first widget? a. $0 b. $1.00 c. $10.25 d. $11.00 Refer to Table 13-1. What is the variable cost of producing zero widgets? a. $0 b. $1.00 c. $10.25 d. $11.00 Refer to Table 13-1. What is the average fixed cost of producing five widgets? a. $1 b. $2 c. $3 d. $4 Refer to Table 13-1. What is the fixed cost of producing three widgets? a. $0 b. S1 c. $15 d. $18 Refer to Table 13-1. What is the variable cost of producing five widgets? a. $13.00 b. $14.00 c. $15.00 d. $16.00Average Average Output Variable Cost Total Cost 10 12 14 16 20 Multiple Choice O $4 $3 $5.00 4.00 These are cost data for an apple farm selling in a purely competitive market. The farm will produce if the price is at least equal to what minimum value? $9 $5 4.75 5.75 9.00 $15.00 13.00 11.50 9.00 12.00 Marginal Cost $3 4 6 9 14Total Product 1 2 3 4 5 6 7 8 9 10 Average Fixed Cost $ 150.00 75.00 50.00 37.50 30.00 25.00 21.43 18.75 16.67 15.00 Multiple Choice The accompanying table gives cost data for a firm that is selling in a purely competitive market. If the market price for this firm's product is $68.10, it will produce 8 units at an economic profit of zero. 6 units at a loss of $90. Average Variable Cost $ 25.00 23.00 20.00 21.00 23.00 25.00 28.00 33.00 39.00 48.00 9 units at an economic profit of $281.97. 8 units at an economic profit of $130.72. Multiple Choice 6 units at a loss of $150. 6 units at a loss of $90. The accompanying table gives cost data for a firm that is selling in a purely competitive market. If the market price for this firm's product is $35, it will produce Average Total Cost $ 175.00 98.00 70.00 58.50 53.00 50.00 49.43 51.76 55.67 63.00 9 units at an economic profit of $281.97. Marginal Cost $25.00 21.00 14.00 24.00 31.00 35.00 46.01 68.07 86.95 128.97 8 units at an economic profit…
- Assume the following total cost schedule for a perfectly competitive firm. Output TVC (S) TFC ($) 100 1 40 100 2 70 100 3 120 100 180 100 250 100 6. 330 100 TABLE 9-1 Refer to Table 9-1. If the firm is producing at an output level of 6 units, the ATC is and the AVC is Select one: a. $71.67: $55 b. $38.33: $16.67 C $55: $16.67 d. $55: S80 e. $80: $55Suppose that a paper mill "feeds" a downstream box mill. For the downstream mill, the marginal profitability of producing boxes declines with volume. For example, the first unit of boxes increases earnings by $30, the second by $ 27, the third by $24, and so on, until the tenth unit increases profit by just $3. The cost the upstream mill incurs for producing enough paper (one "unit" of paper) to make one unit of boxes is $9.50. Assume the two mills operate as separate profit centers, and the paper mill sets the price of paper. It follows that the marginal profitability of boxes represents the highest price that the box division would be willing to pay the paper division for boxes.. Furthermore, assume that fixed costs are $0 for the paper mill. The following table summarizes the quantity, total revenue, and marginal costs from the perspective of the paper mill for selling paper to the box mill at various prices. In the following table, fill in the marginal revenue, total cost, and…Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacity is 1000 units pe r year. Your marginal cost is P10 per chip up to capacity. You have a fixed cost of P10,000 if production is positive and P0 if you shut down. What are your profit-maximizing levels of production and profit if the market price is (A) P5 per chip, (B), P15 per chip, and (C) P25 per chip? For case (B), explain why production is positive even though profits are negative.
