The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 + P. The short run cost function of a representative firm in this market is TC = 150 + 3q2. According to these information Analyze this firm’s position in terms of shut down condition. Should this firm operate or shut-down in the short run? Could you solve the 4. question as follows shut down  and operate  TR= TFC=  TVC= TC = PROFİT=

Q: The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total…

A: Cost Curve refers to the curve that shows the cost of producing the different levels of quantities…

Q: Consider a perfectly competitive firm in short run. If this firm faces a market equilibrium price…

A: A market is said to be perfectly competitive when the participants in the market are in large…

Q: QUESTION 3 Cassandra operates a stall in a luxury rug market that is highly competitive. She earns…

A: Explicit Cost is the cost which is actually incurred by the firm, during production. Firm add these…

Q: The following diagram shows the market demand for titanium. Use the orange points (square symbol) to…

A: Under perfect competition a firm always produce at the point where P = MC and marginal cost (MC) is…

Q: 3. Consider a firm operating in a perfectly competitive market. Answer the following questions as…

A: Under PC, many sellers producing homogeneous products altogether face the entire market demand.…

Q: Q10. Label and complete the following daily cost schedule for Company A as directed by the Quiz…

A: Total Cost = Fixed Cost + Variable Cost Fixed Cost is the cost incurred by the firm that does not…

Q: The supply curve of a competitive firm is y = p/2. Suppose the firm produces 5 units. What are its…

A: Introduction In short run, more quantity of a good is produced by working the given capital…

Q: Suppose a perfectly competitive firm is operating in short run. The information of MR, Q, ATC and…

A: The SR {"short-run"} is described as a concept in which one input factor is fixed and the other…

Q: Given the following information, state whether the perfectly competitive firm should shut down or…

A: The firm's production decision in short-run is based only on the variable cost and not fixed cost.…

Q: 4. Cherry Market The short run equilibrium market price in the perfectly competitive cherry market…

A: Given  Short-run cost function: SRTC=Q2+3Q+3        .... (1) Market price p*=9

Q: c) Under what conditions will a firm shut down in the short run? Provide two plausible real world…

A: The firms, and businesses are considered to be important for the proper working of the markets.…

Q: The shut-down point for a competitive firm is in the short run is where

A: In the short run the shut-down point for a competitive firm is in the is where the average…

Q: The market for sweet potatoes consists of 1,200 identical firms. Each firm has a short-run total…

A: SRTC denotes short-run total cost.  SRTVC denotes short-run total variable cost.  SRAVC denotes…

Q: f a competitive firm finds that its average variable cost is decreasing at its current profit…

A: A competitive firm is a firm that doing business in that market where the large number of buyers and…

Q: Assume a competitive firm is operating at short run equilibrium.  If their fixed cost drops by 40%…

A: Fixed cost :- These are the cost which remain fixed with any unit of output produced.    Variable…

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

A: In a competitive market, there are large number of firms selling identical products. Firm's ATC is…

Q: Use the following information to answer questions 23-24 below. Suppose a representative perfectly…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: Canadian red wheat is a normal good, in a perfectly competitive market that is in long-run…

A: Perfectly competitive market is characterized by a large number of buyers and sellers who deals in…

Q: Jackson Hardware, a firm in the perfectly competitive custom hardware industry, asks you for your…

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

Q: The demand curve and supply curve for carpet cleaning in the local market are currently as follows:…

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

Q: Consider a perfectly competitive market. Suppose each firm has LRATC given by: LRATC (Q) = 1000 +…

A: Given  Long run average total cost LRATC =LRATC(Q)=1000+Q-772 The market is perfectly competitive so…

Q: The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 +…

A: The firm will shut down if Price < AVC and will continue operating if Price > AVC. Using…

Q: Suppose the figure illustrates the long-run average cost curve (AC) and the marginal cost curve (MC)…

A: In a perfectly competitive market, there are many films with free entry and exit. Firm cell…

Q: Assume a competitive firm faces a market price of $120, a cost curve of: and a marginal cost of:…

A: In case of Perfect Competition, there are large number of firms producing similar products. An…

Q: The graph shows the relevant cost curves for a perfectly (or purely) competitive firm. What value…

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

Q: Given the following information, state whether the perfectly competitive firm will shut down or…

A: The firm's production decision in short-run is based only on the variable cost and not fixed cost.…

Q: Billy Idol's Department Store operates in a perfectly competitive market. At the point where MC=MR,…

A: A perfectly competitive market is one there is a large number of buyers and sellers in the economy…

Q: Under what condition will a competitive firm necessarly shut down its operations? What does this…

A: Meaning of Short-Run Supply Curve and Law of Supply: In short-run supply curve, the supply of…

Q: "Consider a perfectly competitive firm in the following position: Output is 4000, market price = $…

A: It can be described as a cost that helps a producer to know about the cost of producing one more…

Q: The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 +…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: The market for sugar cane is perfectly competitive. A typical supplier has a fixed cos FC = 1200, a…

A: Perfectly competitive market is the form of market where large numbers of seller and buyers exit and…

Q: The demand shift results in a short-run economic loss for the firm. O a long-run economic profit for…

A: Long-run equilibrium is a state in which an industry or market has reached a stable equilibrium…

Q: Explain why a perfectly competitive firm will shut down in the short run if price is lower than…

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

Q: Suppose that there are 40 firms in a market, each with the following cost function: C(q) = 44 + 3q?.…

A: Given  Cost function of the firm: C(q)=44+3q2            .... (1) Market demand function:…

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: Suppose a perfectly competitive firms demand curve is below the ATC curve. Explain the conditions…

A: Since the table is missing, it is difficult to answer for sub-parts 'a', and 'b'.

Q: Each of 1,000 identical firms in the competitive peanut butter industry has a short- run marginal…

A: Equilibrium in the market occurs where demand and supply are equal

Q: Suppose that the long run TC function is as follows: TC=1000+10Q² (and total cost is 0 if Q is less…

A: Given, TC = 1000 + 10Q2MC = dTCdQ=20Q Price, P = 300

Q: 2., Consider the market for wheat, which is approximately perfectly competitive. The d.) How much…

A: Answer: (d). The firms in perfect competition earn zero economic profit. It is because, in the long…

Q: (Question 3 of 4): Consider that a perfectly competitive constant long-run cost industry with…

A: Given  Q = 2020 - 2P Total Cost(TC) = 0.5q2 + 10q + 50 Average Total Cost (ATC) = Total Cost(TC) /…

Q: Suppose a perfectly competitive firm can produce10000 bushels of corn a year at an output at which…

A: In a perfectly competitive market, a firm generally able to earn economic profit in the short run,…

Q: 10 A competitive firm has the following total cost function: TC(q) = 10 + q if q>0, TC(q) = 0 if q =…

A: Given Total cost function TC(q) = 10 + q for q > 0 and TC(q) = 0 for q = 0, and the capacity…

Q: Below is a two-diagram model representing a perfectly competitive market and a representative firm…

A: All firms get only normal profit over the long run. A firm can get positive or abnormal profit over…