Rose growing is perfectly competitive and all growers have the same costs. The market price is $27 a bouquet and each grower maximizes profit by producing 2,700 bouquets a week. Average total cost is $21 a bouquet and average variable cost is $17 a bouquet. Minimum average variable cost is $9 a bouquet. What is the economic profit that each grower is making in the short run? In the short run, each grower is of Sa week. >>> If the firm incurs an econom vindow and do not enter a minus sign. making an economic profit incurring an economic loss

Rose growing is perfectly competitive and all growers have the same costs. The market price is $27 a bouquet and each grower maximizes profit by producing 2,700 bouquets a week. Average total cost is $21 a bouquet and average variable cost is $17 a bouquet. Minimum average variable cost is $9 a bouquet. What is the economic profit that each grower is making in the short run? In the short run, each grower is of Sa week. >>> If the firm incurs an econom vindow and do not enter a minus sign. making an economic profit incurring an economic loss

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the price for a fırm's output is greater than the minimum value of its average variable cost, but less than the minimum value of its average total cost, then the firm should shut down in the short run, but resume producing in the long run. the firm should continue producing in the short run, but exit the market in the long run. the firm is earning positive economic profit. the firm should shut down in the short run and exit the market in the long run. the firm should continue producing in both the short run and the long run.
a.Suppose a perfectly competitive firm can produce10000 bushels of corn a year at an output at which marginal revenue is equal to marginal cost. The market price of corn per bushel is $2. The firm's total costs per year are $30000 and fixed costs per year are $15000. Show and explain which of the following is true: In the short run, this firm should a) Produce 20000 bushels to try to increase economic profit. b) Produce 10000 bushels of corn because, although they are losing money, they are losing less than if they shut down. c)Shut down. d) Continue producing until the price of corn increases. b.A perfectly competitive firm, with MC=q operates in a market character,zed by the following market demand and supply conditions: Demand: Q=20000-100P Supply: Q=100P How much output does this competitive firm produce to maximize profit? Show your work graphically and algebraically.
Brody's firm produces trumpets in a perfectly competitive market. The table below shows Brody's total variable cost. He has a fixed cost of $240, and the price per trumpet is $60.-Calculate the average total cost of producing 6 trumpets. Show your work. -Calculate the marginal cost of producing the 11th trumpet. -What is Brody's profit-maximizing quantity? Use marginal analysis to explain your answer. -At the profit-maximizing quantity you determined in part (c), calculate Brody's profit or loss. Show your work. -Brody also produces saxophones at a loss in a perfectly competitive market. Draw a correctly labeled graph for Brody's firm showing the following at a market price of $200. -Brody's profit-maximizing quantity of saxophones -Brody's loss, completely shaded Quantity Total Variable cost 6 $120 7 $145 8 $165 9 $220 10 $290 11 $390
looking to see if my answer is correct for this homework problem and if not why. the AVC is throwing me off
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A firm is selling apples is profit-maximizing, but they're in a constant cost industry. The industry is perfectly competitive and currently in long-run equilibrium. Assume apples are a normal good and consumer income falls, and the firm continues to produce. 1. Illustrate the decrease in income in the short run with a cost curves graph. Make sure to highlight the area of loss.
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