Required informationThe following figure shows the costs for a perfectly competitive producer.AVC, ATC, MC$4540353025201151050C10 20 30 40 50 60 70 80 90 100ATCAVCOutput per periodRefer to the above figure to answer this question. If the price of the product is $35, what is the profit-maximizing output?

Given price of the product = 35 $ Under perfect competitive market structure, the firm will produce…

Answered: The following figure shows the costs…

The following figure shows the costs for a perfectly competitive $45 40 35 30 25 20 15 10 5 0 MC 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period $25 what is the profit-maximizing output?

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: MC $80 ATC $64 $62 $60 AVC $42 $37 80 100 140 200 a The graph above shows the cost curves for…

A: In a market, the profit Maximizing level of output is the one at which market price of a product…

Q: Price, marginal revenue, marginal cost, average total cost W D B U MC J KL ATC a) The firm's…

Q: Cost LRAC 40 30 N 20 10 100 200 400 800 Output

A: The firm earns maximum profit at the point where the average costs are the minimum. To understand…

Q: TRUE OR false.. The firm should shut down its operations if the total revenue cannot cover the total…

A: At a marketplace, a firm will shutdown it's business of it is unable to recover the cost incurred in…

Q: http://google.com Price and costs (dollar 20 16 12 8 4 0 5 10 MC ATC 15 20 Quantity (per day)

A: I’m a perfectly competitive market, there are many firms selling identical goods. Firms do not have…

Q: Firm A produces 300 saucepans and the Marginal Cost of the 300th unit is $160 while the Marginal…

A: A given that firm is producing 300 units with marginal cost of 160 and marginal revenue is 600 of…

Q: The cost function for a firm is given by TC-4,000+ 0.1Q+0.010^2. Marginal costs are given by MC-0.1…

A: Ans. In the short run, the firm's total cost function is the sum of the variable cost and fixed…

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: Suppose a perfectly competitive firm is currently operating with the following information:…

A: The profit maximizing perfectly competitive firm will produce output at point where MR = MC. Here MR…

Q: Calculate marginal profit if marginal cost and marginal revenue are $44 and $80 respectively

A: The data presented in the question above is:- Marginal revenue = $80 Marginal cost = $44 Marginal…

Q: Calculate the maximum profit for the industry if it is perfectly competitive according to the…

A: As per the given diagram MC=ATC

Q: P 100 er. 5 ATC AVC

A: Fixed cost refers to the cost that remains same at all levels of output. This cost does not depend…

Q: ATC 12 AVC 1000 1500 1800 Use the graph above to answer the following questions. The graph…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: D) What will happen to the industry in the (new) long run? Please Illustrate your answer and explain…

A: No perfectly competitive firm acting alone can influence the market cost. Notwithstanding, the blend…

Q: PROBLEM 1 Suppose a single firm has total costs of production given by the equation TC = 49 +59² -…

A: The breakeven price is the price at which total revenue equals total costs, resulting in neither…

Q: and cost 20 15 14 11 5 MC ATC 750 1.100 1,350 1,800 AVC MR Quantity Figure 12-5 shows cost and…

A: Total Cost = Total variable cost + Total fixed cost -- (1) Dividing (1) both sides with quantity we…

Q: Answer the questions on the cost of production King Crab Restaurant has the following cost schedules…

A: In perfect competition, eqm. Q(quantity) is found by the equality of MC(marginal cost) and P(Price).…

Q: The following graph shows the marginal cost curve for Oiram-46, a competitive firm producing magic…

A: A competitive firm is a price taker, this implies that competitive market price is determined by the…

Q: Calculate the average total, fixed, and marginal costs for a “competitive” firm with the following…

A: Since you have posted a question with multiple sub-parts, we will solve the subparts asked by you.…

Q: The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive…

A: We know that, in the short run, for a perfectly competitive firm, the profit-maximizing output (Q)…

Q: Discuss the concept of marginal revenue and average total cost using the example of a particular…

A: Marginal revenue is the additional revenue to the total revenue when one more unit of output is…

Q: 1. What is the economic breakeven level of production? p.Calculate the ice cream producer's monthly…

A: Economic breakeven is the point at which total cost and total revenue are equal, which means…

Q: what are the maximum profits this firm can earn?

A: A competitive market is a typical market that answers the demands for goods and services. A…

Q: Consider a competitive industry. Every firm in this industry has a total cost function C (y) = y² +…

A: C(y) = y2 + 1 MC = 2y and, D(p) = 36 - 2y TR = p x y = (36 - 2y)y = 36y - 2y2 MR = 36 -…

Q: The following graph shows the price, marginal cost, and average cost curves for a firm. Price (RM)…

Q: The graph below shows the costs structure of a firm operating under pure or perfect competition in…

A: Cost is incurred when firm produces some units of output. There are some types of cost. Fixed cost…

Q: The marginal revenue and marginal cost functions of a food importer are given by MR=400-0.5Q and MC…

A: The marginal revenue for the food importer is The marginal cost for the food importer is At quantity…

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: 6. A firm's short-run cost curves for producing gizmos are shown below. MC ATC AVC D=P=MR=AR q1…

A: Constant-cost market is a market where the firms are the price takers and no firm in the industry…

Q: “A firm that earns only normal profit is not covering all its costs.” Do you agree or disagree?

A: Economic Cost consists of explicit cost and implicit cost. In other words it consists of sum of…

Q: A manufacturer of electric switches in a competitive industry has a fixed monthly cost of $50,000,…

A: Fixed monthly cost = $50000Monthly variable cost = $100000MC= $5Monthly production = 100000 units

Q: Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100…

A: ANS Profit is given by subtracting Total Cost (TC) from Total Revenue (TR). Mathematically it is…

Q: Consider the business whose Total Cost and Total Revenue for various quantities of a particular…

A: Profit is maximized when Marginal Revenue(MR) is equal to the Marginal Cost(MC). This is the point…

Q: When the article said that Bird was making 19% gross margin profit, this is

A: Gross margin, a measure of profitability, calculates the difference between sales and costs as a…

Q: Anumber of stores ofter fim developing as a service to their customers Suppose that each store…

A: Long run equilibrium refers to the equilibrium that is achieved over a long period .The period could…

Q: The cost function for a firm is given by TC-4,000+ 0.1Q+0.0102. Marginal costs are given by MC -0.1…

A: Total cost is the cost of producing all the quantities. Marginal cost is the cost of producing an…

Q: IF THE MARGINAL REVENUE IS EQUAL TO THE TOTAL COST PRODUCER IS IN EQUILIBRIUM IS THIS STATEM ENT…

A: If the marginal revenue is equal to the total cost producer will be in equilibrium This statement is…

Q: Sketch a marginal cost curve for a firm that has constant marginal costs of production up to its…

A: Marginal Cost: It is the additional cost incurred by producing one more unit of output. It is…

Q: The accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely a.…

A: A large number of sellers and buyers with homogeneous products are selling in the markets described…

Q: Which of the following will most likely cause the long-run average cost curve of a fim in a…

A: which of the following is most likely cause the long-run average cost of firm in a constant cost…

Question

Required information
The following figure shows the costs for a perfectly competitive producer.
AVC, ATC, MC
$45
40
35
30
25
201
15
10
5
0
C
10 20 30 40 50 60 70 80 90 100
ATC
AVC
Output per period
Refer to the above figure to answer this question. If the price of the product is $35, what is the profit-maximizing output?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

20) - Google Chrome "mod/quiz/attempt.php?attempt%3=1579003&cmid%3812962&page%3D2 em (Academic 20- MC ATC AVC 16 4. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have th same cost curves and the price equals $16 per unit Select one: O a. over time, the price will fall as new firms enter the market. O b. over time, firms will leave this market. O c. the market is in its long-run equilibrium. O d. the firm is making zero economic profit. o search hp Price and cost (dollars per unit)
Solve all this question......you will not solve all questions then I will give you down?? upvote
Lisa’s Lawn Company (LLC) is a lawn-mowing business in a perfectly competitive market for lawn-mowing services. The following table sets out Lisa’s costs. Quantity (Lawns per hour Total Cost (dollars per lawn) 0 $30 1 40 2 55 3 75 4 100 5 130 6 165 If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow? If the market price is $30 per lawn, what is Lisa’s profit in the short run? If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?
True/False A perfectly competitve firm's supply curve is its marginal cost curve above the minimum average variable cost.
If a monopolistʹs marginal revenue is $18 a unit and its marginal cost is $17, then?
Hand written solutions are strictly not acceptable.
At price UA, economic profits are: PRICE A B D E 0 O COFM ABJG Ο ΑΒΚΗ ACMG OABLI Marginal Cost M F H K Average Total Cost Average Variable Cost OUTPUT PER YEAR
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 $6.00 per pair. Buddies Production Costs MC ($) Quantity of Ear Buds 5 10 15 20 25 30 35 40 2.00 2.45 3.55 4.00 5.50 5.98 8.52 pairs ATC ($) 2.00 2.00 2.15 2.50 2.80 3.25 3.64 4.25 Check my work 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? b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 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? d. Now assume the market price is $5.50 per pair, and Buddies produces the…
If the marginal revenue is 45 and the marginal cost is 45 also. What can you say about the firm's profit? Should they produce more?
A manufacturer of electric switches in a competitive industry has a fixedmonthly cost of $50,000, total monthly variable cost $100,000, and marginalcost of $5. What is the profit if the monthly production is 100,000 units?Assuming that prices of switches fluctuate from month to month, what is the lowest price the manufacturer can accept in order to stay in business in the long run and in the short run. Will those prices be the same? Show detail work