Refer to the information provided in Figure 9.7 below to answer the questions thatfollow.Price per bushel (S)26 ana. The industryD₁Bushels of wheatD₁D₁Figure 9.7Refer to Figure 9.7. If MR = $9, then in the long run,the firm will shut down.b. A representative firmMC10 1213 15Bushels of wheatnew firms will enter the industry, and the current firms will expandO production.the firm will exit the industry.None of the above is correct.ATCAVC

Under perfect competition market structure there are large no of sellers , sellung homogenous…

Refer to Figure 9.7. If MR = $9, then in the long run, the firm will shut down. new firms will enter the industry, and the current firms will expand O production. O O the firm will exit the industry. None of the above is correct.

Refer to Figure 9.7. If MR = $9, then in the long run, the firm will shut down. new firms will enter the industry, and the current firms will expand O production. O O the firm will exit the industry. None of the above is correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Is my answer correct? i think you need information about the AVC to answer this question. I know the firm is productive at a loss, but in order to decide whether or not the firm should shut down, you have to know whether or not price is above or below AVC, right?
The following graph shows the short-run average total cost curves for different plant sizes and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost (ATC) curve and the long-run average total cost (LRATC) curve; for example, Q1 marks the point of tangency between ATC1 and LRATC. The orange point on ATC3 indicates the firm's current output level in the short run (Q4). ATC, ATC5 LRATC ATC2 ATC, ATC. Q, Q2 OUTPUT In the long run, if the firm decides to keep output at its initial level, what will it likely do? COST PER UNIT
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Which of the following best explains why a firm would not stop producing if the loss is less than its fixed costs? O Fixed costs are paid regardless of whether something or nothing is produced, and the firm receives enough revenue per unit to cover ATC and some MC. O Fixed costs are paid regardless of whether something or nothing is produced, and the firm receives enough revenue per unit to cover ATC and some FC. O Fixed costs are paid regardless of whether something or nothing is produced, and the firm receives enough revenue per unit to cover AVC and some FC. O Fixed costs are paid regardless of whether something or nothing is produced, and the firm receives enough revenue per unit to cover AVC and some MC.
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Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $2.50, and he is producing at a profit maximizing level Q*, calculate his profit. (Hint: compute MR and MC to find Q*) Q TC 0 $30 10 $50 20 $63 30 $73 40 $78 50 $95 60 $120 Select one: a. $45 b. $30 c. $35 d. $15 e. $0 Clear my choice