What is the firm’s corresponding average total cost (ATC) per unit produced? The following graph shows the cost and revenue curves for J'Aime Bakery, which sells croissants in a perfectlycompetitive market. The marginal revenue (MR) curve is blue and a completely hotizontal line, the marginal cost (MC)curve is red and dips lowest/farthest left, and the average total cost (ATC) curve is green and does not dip as low as themarginal cost curve does. (NOTE: All vertical axis tick marks shown are multiples of 10. If a vertical value is not directlyon a vertical tick, then it is exactly halfway between the one above and the one below.)J'Aime Bakery - Cost & Revenue Curves350300-01$250-200-150-100-50-☑3456Quantity (Q)7 8 910Use the graph to answer the following questions about the firm's optimal (profit-maximizing) operations.(a) What is the optimal price (P*) that the firm charges?P* = $ 55 per unit(b) What is the optimal amount of bread (Q*) that the firm produces?Q* = 5 units(c) What is the firm's corresponding average total cost (ATC) per unit produced?ATC = $ per unit(d) What is the resulting total revenue (TR) that the firm brings in?TR = $275(e) What is the firm's corresponding total cost (TC) of production?TC = $☐(f) What is the firm's resulting profit (TT)?(Hint: Don't forget the negative sign if the firm is losing money!)TT = $

A perfectly competitive market is a market structure that consists of many small firms and many…

The following graph shows the cost and revenue curves for J'Aime Bakery, which sells croissants in a perfectly competitive market. The marginal revenue (MR) curve is blue and a completely hotizontal line, the marginal cost (MC) curve is red and dips lowest/farthest left, and the average total cost (ATC) curve is green and does not dip as low as the marginal cost curve does. (NOTE: All vertical axis tick marks shown are multiples of 10. If a vertical value is not directly on a vertical tick, then it is exactly halfway between the one above and the one below.) 350 J'Aime Bakery - Cost & Revenue Curves $/Q 300- 250- 200- 150- 100- 50- 3 4 5 6 Quantity (Q) 8 9 10 ☑ Use the graph to answer the following questions about the firm's optimal (profit-maximizing) operations. (a) What is the optimal price (P*) that the firm charges? P* = $ 55 per unit (b) What is the optimal amount of bread (Q*) that the firm produces? Q* = 5 units (c) What is the firm's corresponding average total cost (ATC) per unit produced? ATC = $ per unit

The following graph shows the cost and revenue curves for J'Aime Bakery, which sells croissants in a perfectly competitive market. The marginal revenue (MR) curve is blue and a completely hotizontal line, the marginal cost (MC) curve is red and dips lowest/farthest left, and the average total cost (ATC) curve is green and does not dip as low as the marginal cost curve does. (NOTE: All vertical axis tick marks shown are multiples of 10. If a vertical value is not directly on a vertical tick, then it is exactly halfway between the one above and the one below.) 350 J'Aime Bakery - Cost & Revenue Curves $/Q 300- 250- 200- 150- 100- 50- 3 4 5 6 Quantity (Q) 8 9 10 ☑ Use the graph to answer the following questions about the firm's optimal (profit-maximizing) operations. (a) What is the optimal price (P) that the firm charges? P = $ 55 per unit (b) What is the optimal amount of bread (Q) that the firm produces? Q = 5 units (c) What is the firm's corresponding average total cost (ATC) per unit produced? ATC = $ per unit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Using the figure above, what is the total cost for the firm?
Suppose the cost function for a firm is given by C(q) = 200 + 5q. Then: (i) the fixed cost is (ii) the variable cost is (iii) the marginal cost is (iv) the average cost is
If the accounting profit in an economy is $42 billion and the implicit cost is $29 billion find the economic profit.
Assume that it costs a company approximately C(x) = 400,000 + 160x + 0.003x² dollars to manufacture x smartphones in an hour. (a) Find the marginal cost function. Use it to estimate how fast the cost is increasing when x = 10,000. $ per smartphone Compare this with the exact cost of producing the 10,001st smartphone. The cost is increasing at a rate of $ (b) Find the average cost function C and the average cost to produce the first 10,000 smartphones. C(x) (10,000) = = per smartphone. The exact cost of producing the 10,001st smartphone is $ $ (c) Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 10,000 smartphones. The marginal cost from (a) is ---Select--- than the average cost from (b). This means that the average cost is ---Select--- Thus, there is a difference of $ at a production level of 10,000 smartphones.
Find total cost if output is 39 units and average cost is $22
A bag factory produces 30 units of output. Its average fixed cost (AFC) = $32, average total cost (ATC) = $45, and marginal cost (MC) = $25. The shoe factory’s total variable cost is
Find the cost function for the marginal cost function. C'(x) = 0 06 e 0.01x 7 fixed cost is S7 C(x) =D
.
What is the relationship between average variable cost and marginal cost? a) They are always equal b) Marginal cost is always higher than average variable cost c) Marginal cost is always lower than average variable cost d) The relationship varies depending on the production level
If average variable cost is $20 and total fixed cost is $500 at 10 units of output, then average total cost at this output level is:
Which cost concept is used to determine the most cost-efficient level of production? a) Average cost b) Total cost c) Marginal cost d) Variable cost
Question 22