Refer to the information provided in the Figure betow for XYZ company to answer the question that follow Cost curve for a firm in a perfectly competitive industry SRMC2 SRAC, SRAC, SRMC, SRMC3 LRAC SRAC2 9, 92 93 94 9 Únits of output units of output for this firm. For the XYZ company above economies of scale exist up to Select one: O a. qa O b.4 2 O c.43 O d. 41

Refer to the information provided in the Figure betow for XYZ company to answer the question that follow Cost curve for a firm in a perfectly competitive industry SRMC2 SRAC, SRAC, SRMC, SRMC3 LRAC SRAC2 9, 92 93 94 9 Únits of output units of output for this firm. For the XYZ company above economies of scale exist up to Select one: O a. qa O b.4 2 O c.43 O d. 41

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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$ 0 Based on the graph above, the firm is earning: ο ο ο Zero economic profits Zero accounting profits MC Zero normal profits ATC AVC D = MR We can say nothing about this firm's profit or loss situation
Show all the necessary steps and/or reasoning that lead to your answers. No credits will be given to answers without necessary steps and/or reasoning. 1. Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market. AFC Output Fixed Cost 1 2 3 4 5 $50 $50 $50 $50 $50 Variable AVC Cost $30 $50 $80 $120 $170 Total cost ATC MC a. Fill in the blank columns b. What is the minimum price needed by the firm to break even? c. What is the shut down price? d. At a price of $40, what output level would the firm produce? What would its profits be? 2. What can you expect from an industry in perfect competition in the long run? That is, what will the price be? What quantity will be produced? What will be the relation between marginal cost, average cost, and price?
Could I have help finding the long run TC, AC, and MC?
Complete the following statement about the marginal productivity theory. For a firm that is a factor price taker, _____ , And firms hire the factor quantity at which _____. Thus, it follows that _____. Suppose that Manuel works for Clear Drop Co, a perfectly competitive firm producing water filters. Manuel was paid $3,000 but found a better job and quit Clear Drop. Since nothing else changed, Clear Drop's total revenue _____. Blank 1: a. MFC = P b. MFC = 0 c. MFC < P d. MFC > P Blank 2: a. MRP = MFC b. MRP = 0 c. MRP < MFC d. MRP > MFC Blank 3: a. W = MRP b. W < MRP c. W > MRP Blank 4: a. does not change as well b. falls by $1,500 c. falls by $3,000 d. rises by $1,500 e. rises by $3,000
Question 18 Suppose a perfectly competitive firm faces the following situation: P = $10, output= 3,000, ATC= $8.50, MC $11, and AVC=$7.50. Which statement accurately describes the firm's situation? = O The firm incurs a loss and is minimizing its losses. O The firm carns a profit but should increase output to maximize its profits. O The firm is maximizing its profits. The firm earns a profit but should decrease output to maximize its profits.
* Please meke and descriptive Consider a competitive firm wwith the following your answer easy read to Question pcoductian function Q = L9 KR b. where Q = of output quentity quantity of labor quantity of labor Price of the product (P) = 10$ Unit wage an hour (w) Discount cate () F 10% O, 4 1) what s the critical value off laber (^)) 2) what the ccitical alue of labor (KO? 3) What is. the profit (Ji) ? maximun
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.
What will happen when variable costs rise in a perfectly competitive industry? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. The number of firms will eventually increase, but the existing firms will cut back production in the short run. a b C Question 81 d The number of firms will eventually decrease and the existing firms will cut back production in the short run. The number of firms will eventually decrease, but the existing firms will expand production in the short run. The number of firms will eventually increase and the existing firms will expand production in the short run.
Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 100 90 70 60 ATC 40 30 20 AVC 10 + ++++ 10 15 20 3 30 35 o 5 QUANTITY (Thousands of jackets) 50 For each price in the following table, use the graph to determine the number ofr jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 10 20 32 COSTS (Dollars)
hand write..solve 15 mins. I'll give you multiple upvote
In the theory of the firm, profit is maximized at a rate of production at which O Economic profit is zero O Price is highest O Marginal revenue equals marginal cost O Marginal cost is at its lowest point
Econ 201. Name Assume that this is the cost function for a perfectly competitive firm: Cost (q) = 5 q' + 20 For this cost function, Marginal Cost = MC = 10 q . Fill in the table with your values from your cost function. Total Cost AVC AFC ATC MC 20 -- 1 3 3) For any cost function, you can find min A setting ATC = Land solving for q. Create a graph showing the minimum of function, Add AVC and MC to your graph. ) Here MC is always increasing. As q increa nappens to ATC when it is less than MC and w happens to ATC with is more than MC? At what level of production is AVC at its minimum? (the table you made is enough information for you to fin value.) For any price, will your firm always be able to cover its variable cost?