Revenue and Costs (dollars) 160 TC TR 140 120 100 80 60 40 20 2 46 8 10 12 14 16 18 20 Quantity In the above figure, at the profit-maximizing rate of production for the perfectly competitive fim, profit is O A. $30 OB. $130 OC. S100 O 0. S70

Revenue and Costs (dollars) 160 TC TR 140 120 100 80 60 40 20 2 46 8 10 12 14 16 18 20 Quantity In the above figure, at the profit-maximizing rate of production for the perfectly competitive fim, profit is O A. $30 OB. $130 OC. S100 O 0. S70

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 32CTQ: How does fixed cost affect marginal cost? Why is this relationship important?

See similar textbooks

Related questions

Q: The occurrence of financial crowding out implies that: Short-run fiscal expansion increases the…

A: The crowding out effect occurs when higher interest rates cause a decrease privately investment…

Q: In 1750, a large number of honey beekeepers in Kirkcaldy were selling honey in identical jars. By…

A: The economics as a study is based upon the basic idea that there is resource scarcity present with…

Q: Can excess profit be earned in an oligopoly?

A: Oligopoly is a market structure in which few sellers operate in the market.

Q: Let the demand function for a product be Q = 50- 5P. The inverse demand function of this demand…

A: Demand curve shows an inverse relationship between price and quantity demanded. The curve slopes…

Q: 1) A monopolist faces a demand curve Q = 600 – 10P and has the total cost curve TC(Q) = 200 + 20Q +…

A: Q = 600 - 10P P = 60 - Q/10 TC = 200 + 20Q + 2Q2

Q: Alice and Bob are playing a repeated game in which a certain stage game is played twice in…

A: It is given that: Alice has 4 pure strategies and Bob has 3 pure strategies in the stage game

Q: Marginal utility is equal to which of the following? O A. the change in total utility from consuming…

A: Total utility is the total amount of satisfaction that a consumer receives from the consumption of…

Q: (d) Now if Aidan sells q2 JRTs, what is the total number of JRTs that will be sold? (e) What will be…

A: In the given scenario, adan is a leader one and the celina is a follower.

Q: at what nominal rate compounded monthly quarterly will P24,000 accumulate to P30,000 in 4 years?

Q: Assume that n= 1. The real interest rate is %. (Round your response to two decimal places.)

A: Real Interest Rate refers to the interest rate that has been adjusted for inflation. It shows the…

Q: Which statement is true about inflation? A. As inflation rises, unemployment usually stays the same.…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Please analyse it. How we found the GDP deflator and the CPI. I'm confused

Q: Consider a modification of the Rock-Paper-Scissors game in which P2 is an expert in body language…

A: Given, The modification of the Rock-Paper-Scissors gamePlayer 2(P2) is an expert in body language…

Q: Explain and Discuss the Nature of Rural Problems

A: Rural people's livelihood depend on the agricultural activities mostly . And large population size…

Q: In a world comprising two economies, each has to choose whether to use renewable energy in its…

A: Given, 2 Players : Developed Economy and Emeerging EconomyBoth Players have two strategies :…

Q: h of the following are arguments in favour of active stabilization policy by the government? Check…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…

Q: Suppose that we can describe the world using two states and that two assets are available, asset K…

A: Future Price refers to the price of an asset in the future. It is usually predicted using the…

Q: You are consultant at large international consultancy (“PharmCons”), specialized in consulting…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, I will be…

Q: Explain how the military arms race between the United States and the former Soviet Union had the

A: US versus Soviet Union: Prisoner's Dilemma In the early Cold War, the race for atomic…

Q: Within the remote nation of New Hope, total industrial production is currently creating a constant…

A: The correct answer is given in the second step.

Q: The graph above represents Aruna's situation. Pottery Plus has two rival firms. Aruna is convinced…

A: The correct answer is given in the second step.

Q: Consider the table of prices and the quantity demanded by Rolando Mota whose behavior has been…

A: Given information

Q: Suppose in a test of hypothesis the probability value (p-value) is 0.0788. Then you should, a not…

A: Given the p-value for test hypotheses is 0.078

Q: Assume a competitive firm faces a market price of $200, C = 13q3 + 4q + 750 MC = q2 +4 Profit…

A: The correct answer is given in the second step.

Q: Nicanor's passion is good wine. If the prices of the other goods are constant, Nicanor's demand for…

A: Substitution effect refers to that component of change in demand of a good which is not a…

Q: continued to work in the company. At the end of the year 2014, however, she was recruited by a media…

Q: Suppose policy makers decide to reduce the tax rate. Show this in an IS-LM(policy rule) graph.

A: The IS-LM model explains the interaction of two important markets of an economy that are goods…

Q: In economics, utility O A. and relative price are the same thing. B. always decreases as income…

A: Relative price of the good is the ratio of price of the good itself and price of other good.

Q: Okun's law describes the_long-run v relationship between the unemployment rate and the growth rate…

A: Okun’s law states the long-run relationship between unemployment and real GDP growth rate. If a…

Q: MR AC (ATC) TC MC Profit +/ TR $170 $0 $95 $160 $195 %$4150 $145 $140 $127 4. $130 %$116.25 $120…

A: In a monopoly, Marginal revenue curve lies below the demand curve which implies the seller can has…

Q: Inflation Unemployment If the Phillip curve shows that unemployment is low and inflation is high in…

A: The Phillips curve depicts the inverse relationship between the inflation rate and the unemployment…

Q: Which of the following results from a subsidy? Select one: O a. world output is increased

A: Subsidy is provided by the government to save the exporter from the low world prices. The subsidy…

Q: The table represents the market share of the 10 largest steel producers. Firm Market Share (%) 1…

A: The correct answer is given in the second step.

Q: Which of the following statements about Type I and Type II errors is correct: a Type I: Do not…

A: Null hypothesis is a hypothesis that says there is no significant difference in a set of…

Q: 1. Zaggy Zargawhoop has an idea for a new business. In order to develop his idea, he needs to invest…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Explain how the Prisoners' Dilemma game can be used as a way to describe the market structure of…

A: Oligopoly Market : Oligopoly arises when a small number of large firms have all or most of the sales…

Q: What characterizes a market structure known as Oligopoly? How does Oligopoly is both similar to…

A: An oligopoly could be a market with a little number of enterprises that recognize their pricing and…

Q: : An economy is described by the following equations: Z=C+l+G C=600+0.6(Y-T) I=300 G=700 T=600 )…

A: (C) Consumption function: C = 600 + 0.6(Y-T) Differentiate C w.r.t Y to get MPC => MPC = dC /dY…

Q: GDP Counting Activity Consumption Expenditures (A) Gross Private Domestic Investment (B) Government…

A: We are going to solve this question providing appropriate answer using definition of the term…

Q: osure case, reveals that the continuous segment the firm's CMg curve that lies above the CPT…

A: Marginal cost is the extra cost caused for the creation of an extra unit of result.

Q: Which of the following scenarios is an example of a recognition lag? The economy: a)enters a deep…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you…

Q: 6) Netflix is making two versions of its subscription plans (4K and FHD), which target consumers…

A: The profit is maximum where the marginal cost is equal to the marginal revenue for a product. It…

Q: 4. Conditions for monopolistic competition Consider the monopolistically competitive market…

A: In competitive and monopolistically competitive market there is free entry and exit of firms which…

Q: 10) There is only one bar at a beach, i.e. this bar is a monopoly. A typical customer has the demand…

A: A monopoly is a single seller who charges a higher price above the marginal cost by producing less…

Q: The following table provides the Consumer Price Index (CPI) and GDP Deflator for the United States…

A: Consumer price index includes goods and services consumed in the economy and GDP deflator includes…

Q: : An economy is described by the following equations: Z=C+l+G C=600+0.6(Y-T) I=300 G=700 T=600 )…

A: Given: C=600+0.6(Y-T) I=300 G=700 T=600

Q: Eastlandia's GDP in 2021 is $12494. Government budget deficit in 2021 is $63.7. Government debt at…

A: Budget deficit: - Government budget deficit is the condition in which the government spends more…

Q: Economics Question

A: The Federal Bank conducts monetary policy using Federal Open Market Operations through the buy and…

Q: f you deposit $10000 into a fund paying interest 6%. How much you get after one yea

A: Given the deposit amount = $10000 Interest rate = 6%

Q: Problem 2: An economy has the following sectors: private households, government, grape producers and…

A: Gross domestic product, or, GDP refers to the value of all the final products that is manufactured…

Question

Solve it correctly

Revenue and
Costs (dollars) 160
TC
TR
140
120
100
80
60
40
20
2 4 6 8 10 12 14 16 18 20
Quantity
In the above figure, at the profit-maximizing rate of production for the perfectly competitive fim, profit is
O A. $30
OB $130
OC. S100
O 0. S70

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
Why will profits for films in a perfectly competitive industry tend to vanish in the long run?
Suppose that the market price increases to 6, as Table 8.14 shows. What would happen to the profit-maximizing output level?
Why will firms in most markets be located at or close to the bottom of the long-run avenge cost me?
If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
How does fixed cost affect marginal cost? Why is this relationship important?
Exhibit 23-8 Price and Cost (0) 11 10 O Tvm A WATC AVC 70 90 100 Quality O 5300- O $700 © 51,000/- o $400 190 Price and Cost (ddium) || 10 8 ATC 7 100 150 200 Quantity AVC Refer to Exhibit 23-8. What is the total variable cost of firm A at the profit-maximizing (or loss-tninimizing) level of production?
ework 71 B Saved Help Save & Exit Subm Assume the price of basic white t-shirts in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Quantity (t-shirts per day) Total Cost 0 $10 1 17 2 26 Print 3 37 4 50 5 65 6 82 7 101 8 122 9 145 10 170 aw Search ^ C
Output TFC TVC TC MC ATC A 25 25 ---- -- ------- 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 2nd unit of output? Cannot be determined. 15 25 30 O O O O
The blue curve on the fallowing graph represents the demand curve facing a firm that can set its own prices. Use the graph inout tool to help you answer the folowing questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white fidld, the graph and any corresponding amounts in cach grey field will change accordingly. Graph Input Tool Market for Goods 200 nguantity Semanded 20 100 Demand Price (Dolars per unt) 140 100.00 120 100 Demand 40 20 12 16 20 24 21 2 M 40 QUANTITY Iunita) On the graph inpue tool, change the number found in the Quantity Demanded feld to determine the prices that correspond to the production of 0, 8, 26, 20, 24, 32, and 40 units of output Calculate the total revenue for each of these production leveis. Then, on the fallowing graph, use the green paints (triangie symbal) to plot the resuuts. 2000 Tata Revenue 200 00 400 200 16 20 QUANTITY (Number of uni) 12 24 20 40 Calculate the total revenue if the firm produces…