Refer to the information provided in Figure 9.4 below to answer the question(s) that follow. MC AVC d 3 MR 100 Units of output Agure 9.4 Refer to Figure 9.4. In the short run, if economic conditions do not change, this firm should produce units of output and will earn a total revenue 100; of $800 O b. 0; of S0 less than 100; > $0 but < $800 Od. more than 100; > $800 Price per unit

Refer to the information provided in Figure 9.4 below to answer the question(s) that follow. MC AVC d 3 MR 100 Units of output Agure 9.4 Refer to Figure 9.4. In the short run, if economic conditions do not change, this firm should produce units of output and will earn a total revenue 100; of $800 O b. 0; of S0 less than 100; > $0 but < $800 Od. more than 100; > $800 Price per unit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Safari 09:24 Wed 8 Dec VPN O 93% Screen Shot 2020-12-08 at 10.10.34 AM.png The table below shows the short-run production function for Michelle's Accounting Company. Number of Bookkeepers Total Product per Hour 1 8 20 3 40 4 55 65 6. 70 7 65 8. 55 (a) After which bookkeeper do diminishing marginal returns begin for Michelle's Accounting Company? Explain using numbers. (b) Assume Michelle's Accounting Company sells its accounting services in a perfectly competitive market at a price of $20. Calculate the marginal revenue product of the sixth bookkeeper. Show your work. (c) Michelle's Accounting Company hires bookkeepers in a perfectly competitive labor market for bookkeepers at a wage rate of $110 per hour, and the market price of services remains $20. How many bookkeepers will Michelle's Accounting Company hire to maximize its profit? Explain using marginal analysis. (d) Assume bookkeepers and accounting software are substitutes in providing accounting services by all accounting firms…
When firms in a competitive market are experiencing zero economic profits, one can assume that O they should be producing a different product. s there is currently no better way to use society's scarce resources. O they will eventually go bankrupt. O accounting losses are being experienced by these firms.
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88) The figure below shows a family of cost curves for a firm. The subscripts 1, 2, and 3 for the SRATC curves refer to different plant sizes. Cost FIGURE 8-2 Q₁ B C SRATC₁ D E SRATC2 SRATC3 Select one: O a. technically inefficient methods of production, given that they lie above the LRAC. O b. the lowest cost attainable, given that the plant size is the largest it can possibly be. O c. the output that is possible when all factors of production are fixed. O d. the lowest cost attainable for any given plant size. O e. optimal plant sizes in the long run. F Output Refer to Figure 8-2. The points of tangency between each of the three SRATC curves and the LRAC curve show LRAC
Refer to the graph shown. If a firm expected to produce 900 units when it built its plant but now desires to reduce its output to 600 units in the short run, it will use the plant size represented by: 0 300 O Multiple Choice O 600 00 SATC₁ Quantity SATC₁. SATC2. SATC3 SATC2 SATC3 SATC₂ SATCA. 900 L 1200 SATC Long-Run Average Cost 1500 Refer to the graph shown. A firm that shifts from SATC₁ to SATC2 is most likely to do so because planned output increases: Cost per unit 0 300 600 SATC₁ Multiple Choice 900 1200 1500 Quantity SATC₂ SATC2 SATC₂ to 300, from 300 to 900. from 300 to 600. SATC Long-Run Average Cost from 600 to 900.
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Interpret the following statement: “In the Fruit & Vegetable Market in Al-Aweer in thelongrun, the price per kilo of watermelons will be equal to the long-run average cost incurred byMr. Mohammed. In other words, he will earn no profit or incur no loss.”
Tire Co. has total fixed costs of $1000 per month. The firm's variable cost is $800 for 10 tires. At that level of output, the firm's average variable costs equal: A. S80 B. S180 C. $100 D. 5120
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Completed 0 out of 30 Resources Submit All Question 16 of 30 The graph shows the costs, revenue, and demand facing a A profit-maximizing monopolistic competitor monopolistically competitive firm. Refer to the graph to answer the three questions. 50- Marginal cost 40- B 30 (5) 20-C Average cost The area covered by rectangle CDFE is the firm's ID 10- Demand 0- total cost. 10 20 30 40 50 60 70 80 90 100 1i0 -10- Marginal revenue total revenue. Quantity O profit. O None of the above. The area covered by rectangle A BDC is the firm's total cost. 8:19 P 46°F A E 4) 12/15/2 a Price ($)
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The difference between accounting profit and economic profit total revenue. O marginal product. O explicit costs. O implicit costs.