Answered: Suppose there are 100 farms in this…

Suppose there are 100 farms in this industry with identical cost curves, as shown in the table. Which point would fall on the industry short-run supply curve? O $2, 300 kilograms

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: In a perfectly competitive market there is a donut shop that sells 1,200 donuts daily. Each donut…

A: Variable costs are costs that change in proportion to the number of goods or services that a…

Q: Firm E has cost function C(q) = 3 + 10, where 3q² is the firm's variable cost, and 10 is a short run…

A: In the short run, the shutdown point is when the marginal cost is equal to the average variable…

Q: When is an industry productively efficient? A. When firms in that industry produce the amount of…

A: The production function determines all the input bundles that produce the same output level. The…

Q: Price and costs (dollars) rell 4: The cost structure for a firm in a competitive market. Ps PA P3 P₂…

A: The minimization of profit loss occurs when the firm produces at the level where price equals…

Q: Perez Lumber Company sells surfboards in a perfectly competitive market. The marginal cost of…

A: A perfectly competitive firm:In a perfect competition, there are many sellers and buyers, thus the…

Q: You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One…

A: Perfectly competitive market refers to a market scenario in which there are large number of buyers…

Q: Suppose that at 500 units of output, marginal revenue is $9, marginal cost is $6, and average total…

A: In economics, understanding the relationship between marginal revenue (MR), marginal cost (MC), and…

Q: Use the following data to analyze the condition when the product proce is set at $41 Assume the…

A: Profit maximizing conditions for a competitive market are - Necessary Condition : P = MC Sufficient…

Q: Marianne owns a dairy farm near Fresno, CA. She is currently producing cheese at an output level…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: The table below shows the short-run production function for Michelle's Accounting Company. Number…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: If the short-run marginal and average variable cost curves for a competitive firm are given by SMC =…

A: Total revenue is the product of price and quantity Total profit is the difference between the total…

Q: The minimum price at which a firm would produce in the short run rather than shut down immediately…

A: The firm will shutdown its production facility if it is not able to recover its variable cost in the…

Q: A strawberry farmer, operating ih a perfectly competitive market, is currently producing 99 packs of…

A: Under perfect competition , marginal revenue equals price and average revenue ( P =MR=AR ). Because…

Q: For one period, a firm has fixed cost equal to $8,000 and a marginal cost of $7 per unit of output…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: Stuff, Incorporated is a firm with a total revenue of $1,000, marginal cost of $5, and average…

A: Given, Total Revenue = $1,000 Marginal Cost = $5 Average Variable Cost = $4

Q: What is the relationship between a firm’s supply curve, its marginal cost curve, and its average…

A: Supply curve has a positive slope indicating greater quantities are supplied at higher prices.…

Q: Inja perfectly competitive market, there are many similar producers. The cost condition of a typical…

A: Producer equilibrium is always set at point when marginal revenue is equal to marginal cost and the…

Q: Consider a firm in a perfectly competitive industry. Market price right now is Pmkt. Demand for the…

A: Supply curve (in a perfectly competitive market): The firm's output quantity at various prices,…

Q: Which of the following is true about the long run in a compe industry? There are more firms…

A: The perfectly competitive market is characterized by the presence of a large number of buyers and…

Q: Question 8 The equilibrium of the producer is the O Shutdown point O MRTS = MPL/MPk O…

A: Shutdown point:- A shutdown point is a stage in business process where a corporation sees zero…

Q: $ ATC MC AVC $85 $70 $60 $50 $40 $30 Suppose the market for wheat is competitive and its supply side…

A: Perfect competition is a market structure in which there are large number of firms selling…

Q: Compact discs are sold in a perfectly competitive market. The current market price of compact discs…

A: Average Variable cost is the variable cost that os incurred to produce one additional unit of…

Q: Cost 16 MC 14 12 10 8 6 4 2 ATC AVC D, MR 0 10 20 30 40 50 60 70 80 90 Output The firm's long-run…

A: In a perfectly competitive market, the long-run supply curve begins at the minimum point of the…

Q: In a perfectly competitive market there is a donut shop that sells 1,200 donuts daily. Each donut…

A: A market is competitive when many sellers and buyers hop in to swap their products or services.…

Q: If the market for product "X" is an increasing cost industry, if there is a substantial increase in…

A: An industry is an increasing cost industry where average cost of production increases with increase…

Q: A firm is a price taker if it sets its O price based on the demand curve it faces own price, but…

A: Price is determined through market forces of demand and supply in perfect competition. Price is…

Q: Which of the following causes an upward shift in a firm 's short-run marginal cost curve? OAn…

A: Recall that, in the short run, fixed costs do not change and only variable cost matter. Also,…

Q: In the diagram below the perfectly competitive firm sells its product at price p = $5.50. Which of…

A: Perfect competition is a type of market where there are very large number of firms,which have no…

Q: Suppose that the equilibrium price is $10.19 (black line). This firm is earning OProfits O Losses O…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: When P is $25, Quantity is taken from minimum AVC which is 30,000When P is $70, Quantity is taken…

Q: If there were 20 firms in this market, the short-run equilibrium price of titanium would be $ per…

A: The marginal cost curve is cut the minimum point of average variable cost. The supply schedule is…

Q: Emma sells hand-made shawls in a perfectly competitive market for £18 per shawl. Emma’s fixed costs…

A: Total cost (TC)= Total Fixed cost (TFC) +Total variable cost (TVC). TFC is cost associated with…

Q: A leftward shift of a product supply curve might be cause by O An improvement in the relevant…

A: Introduction A supply curve shows the relationship between the cost of a good or service and the…

Q: When are firms likely to enter an industry OA Fims will exit an industry when price is greater than…

A: Economic profit refers to the difference between the total revenue derived from the sales of a good…

Q: Assuming this firm maximizes profit, it will: . a Incur total fixed cost of KL at a price of P1.X b.…

A: The perfectly competitive firm is a price taker and can sell any quantity of commodity at the market…

Q: Imagine a firm in a competitive market comes up with a new production method, which halves its…

A: Considering the given information, a new production process is introduced. As a result, 1. Marginal…

Q: The market for apples is perfectly competitive and currently has 400 identical firms. Each firm has…

A: Perfect competition refers to the situation where there are many buyers and sellers exist in the…

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: Question 17 Afrm in a competive market has the folowing cost structure Quantity Total Cost (Units)…

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

Q: 1. There are 10 firms in this market. Each firm has the following long-run cost function: TC = 200 +…

A: The information we have is as follows:- TC = 200 + 0.5q^2 Market demand is:- Qd = 300 - 5p

Q: Suppose solar panel manufacturing is an industry subject to significant economies of scale, and…

A: If the demand for solar panel is five times the production there would be excess demand initially.…

Q: Refer to Figure 3 in Question 29. The quantity of output at which the MC and ATC curves cross is the…

A: In industrial association, the minimum efficient scale (MES) or efficient scale of creation is the…

Q: Calculate firm profit for a market price of $8.000. Is this firm in a long run equilibrium? A)…

A: A perfectly competitive firm produces at P=MC in the short run. A perfectly competitive firm either…

Q: The following graph plots daily cost curves for a firm operating in the competitive market for demin…

A: In economics, particularly general equilibrium theory, a perfect market, also called an atomistic…

Q: represents average MC H,AC C Current Price (in the Short Run) %3D %3D %3D .3. %3D M LK Quantity If…

A: In perfectly competitive market, price is constant so it is equal to marginal revenue.

Q: The owner of Tie-Dyed T-shirts, a perfectly competitive firm, has hired you to give him some…

A: In short run , A firm should shut down when the market price is less than the average variable…

Question

Table: Cherry Farm
Quantity of
cherries
(in pounds)
0
1
3
4
7
Total Cost
$2
7
11
13
16
21
28
38
Use Table: Cherry Farm.
Suppose there are 100 farms in this industry with identical cost curves, as shown in the table. Which point would fall on the industry short-run supply curve?
O $2,300 kilograms
O $11, 200 kilograms
O $3,500 kilograms
O $8, 600 kilograms

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: Define Industry supply

VIEW

Step 2: Find the possible point which can fall of short run supply function of the industry

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

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

Fill out chart am confused
Please help me
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 2$ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$
4. For production functions i) q = K0.25L0.25, ii) q = K0.5L0.5, iii) q = KL a) Assume w= $20 and v = $20, what are the long-run MC and AC equations? b) Tum the MC functions into firmlong-run supply equations. c) Graph the MC and AC functions. Assume that the price of output is $20, explain how the q = = q(p = $20) might or might not be a profit-maximizing outcome and whether the SOC's will be satisfied.
Time left 1:12:53 A firm's total short-run cost function is C(y) = 12y³ – 8y? + 30y + 12. At what price will the firm agree to produce assuming that the marginal cost is known? O a. $8.33 b. $28.67 O. $11.68 O d. None of the above Clear my choice
I need help on this question
Answer all parts
please also do the graph and the choices for the first blank is 2000, 7500, 8000, 10000 and the choices for the second blank is profit or economic loss thank you!!!
The cost function faced by a firm in a perfectly competitive market is the following: ctyedy+10y+25, where y denotes the output level. a. Find the price at which the firm will earn zero profits. b. Also write down the equation of the supply curve of the firm. c Using your answer in part a), comment on the following statement: "At a price of p-2O, the firm will make positive profit", is the statement True or False? Explain For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). R.
Imagine a firm in a competitive market comes up with a new production method, which halves its marginal cost at all levels of Q. Fixed costs are unaffected. Which of the following statements are true? O a. The firm's AC at all levels of Q would be lower. O b. The firm would extract an innovation rent from selling at the market price with lower costs. Oc. The firm's point of minimum AC would be a higher level of Q. O d. The innovation would immediately cause the market price to drop.
None
The table below shows cost data for a Aurora Cannabis, which sells marijuana in a perfectly competitive market. If the price of marijuana is $25 an ounce, Aurora will: Output O 1 23 4 5 6 7 Total cost $50 90 120 140 170 210 260 330