The following table provides information about long-run average cost curve of a firm: Quantity LRAC 100 50 200 43 300 39 400 39 500 44 600 52 O a. This cost structure is an example of natural monopoly. O b. For the first 300 units of output, this firm has diseconomies of scale.

The following table provides information about long-run average cost curve of a firm: Quantity LRAC 100 50 200 43 300 39 400 39 500 44 600 52 O a. This cost structure is an example of natural monopoly. O b. For the first 300 units of output, this firm has diseconomies of scale.

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: Use the diagram below to determine the price and quantity for:

A: The pareto efficiency refers to situation where one can not be made better off without making other…

Q: Need help with calculating the total revenue and graphing. It's the questions with a red star next…

A: The graph you\'ve posted will probably give you total revenues figures more accurately if you just…

Q: S per unit 232222 30 28 26 24 20 18 16 14 12 10 8 6 4 2 0 0 0.5 1 1.5 2 2.5 MC 3 3.5 4 4.5 5 5.5…

A: The above figure is related to microeconomic theory, specifically the behavior of firms in a…

Q: MC Price AC £/unit AVC D2 D3 D1 D4 Quantity/ week Figure 9 Cost curves for a price-taker firm Figure…

A: A price taker firm is one that operates its business in the perfectly competitive market, due to…

Q: The following figure shows the average cost curve, demand curve, and marginal revenue curve P. MR…

A: Cost is the amount of expenditure incurred on goods or services. It is incurred for the hiring of…

Q: 1.What is the firms shutdown price 2. If there are 1000 identical firms in the market, what is the…

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

Q: The marginal revenue product of a resource is equal to the value of marginal product when the…

A: Marginal Revenue:The term marginal revenue is a microeconomic concept that reflects a change in the…

Q: b) Refer to Figure 1. The time period in Figure I c) Refer to Figure 1. Find the firm's ATC when…

A: Profit maximization is a process business firms undergo to ensure the best output and price levels…

Q: Which of the following is a characteristic of perfect competition? O a small number of sellers O The…

A: Perfect Competition is a type of market in which there are a large number of buyers and sellers, who…

Q: Help

A: The question is about the long-run adjustments in a perfectly competitive market. The figure shows…

Q: which of the following market ructure is the degree of control rer the price of its product by a

A: To find : Which structure is degree of control over price.

Q: Describe the market structure and Calculate short run output, Price and profit Warner by Green Bull.…

A: P = 50 - 0.00025QTVC = 5Q + 0.0002Q2 , TFC = 405,000 Dkk.TC = 5Q + 0.0002Q2 + 405000MC = d(TC)dq =…

Q: The young and beautiful expert Hand written solution is not allowed

A: 4. Maximizing quantity is found where MC intersects D curvethis is the point 98,125 5.The total cost…

Q: * $31.25 MC АТС $25 P=MR $20 $18.75 $12.5 $6.25 $0.0 Quantity 20 40 60 80 100 120 140 160 180 200…

A: A perfectly competitive firm is a type of market structure that exists in economic theory. It…

Q: What is the value of this firm's revenue ifit operates where MR-MC? Enter your answer as a number…

A: The profit maximizing level of output for perfect competitive market is where MR = MC

Q: 4 00:56:48 Mc Graw Hill Assume a producer called Joe Biden sells beef in a perfectly competitive…

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

Q: What is the profit-maximizing output? Output Price Total Marginal Total Marginal Total Profit…

Q: opportunity in tutoring her fellow students before each knowledge of economics eliminates any risk…

A: Efficient quantity is the quantity at perfect competition

Q: AVC ATC APC 70 90 100 Quantiry 150 100 150 200 Quantiry 100 7 700 $2600 units dollars dollars

A: A perfectly competitive firm is a price taker and, therefore, faces a perfectly elastic demand…

Q: Firm änd Market In this exercise and the next, we compare a perfectly com etitive market to a…

A: The firm, has Tc = 90+2.5q2 P= 60-1/2Q

Q: QUESTION 5 Which of the following is true for monopoly and perfect competition? CA The demand for…

A: A monopoly firm is the sole supplier of the good in the market and therefore a monopoly firm faces…

Q: Check all that apply The firm is breaking even when it produces its profit maximizing outpu The…

A: The perfectly competitive market refers to a market where many buyers and sellers exist. All sellers…

Q: Nhat is the profit maximizing output for this monpolist? (Pick the best answer.)

A: Profit maximizing condition in monopoly is the output level at which MR = MC

Q: Figure A Competitive Firm1.2 MC ATC Given Pl =S7.00 P2 = S8.50 P3 = $9.20 Q1 =100.00 AVC P3 P2 P1 MR…

A: Fixed Cost remains fixed at all units of output. Total Cost = Fixed Cost + Variable Cost AFC = TFC /…

Q: Which of the following is a measure of the market power that a firm possesses? O The marginal…

A: A firm has market power when it is able to charge a price over its marginal cost. If Price >…

Q: Calculate the value of Marginal revenue when total revenue rise from $400 to $600 and the output…

A: # Marginal revenue is given as the additional Revenue added to the value of total revenue when sales…

Q: Will other firms enter the singing lesson business and compete with Lorie? Other firms because enter…

A: Demand schedule:Price ($ per lesson)Quantity demanded (lesson per…

Q: Hana Co. for Catering provides catered meals, and the catered meals industry is perfectly…

A: Total Cost=Fixed Cost+Variable CostAverage Fixed Cost (AFC)=Fixed CostQuantityAverage Variable Cost…

Q: Table 1 shows the total cost schedule for a competitive firm. Price per unit of output is £7.…

A: A firm operating within a market characterized by a significant number of buyers and sellers, with…

Q: Suppose & firm in a competitive market_ faces the following revenue and cost Function Th=121 and Tc:…

A: This question asked us to a) determine the level of output that maximizes profit. b) Find the price…

Q: Suppose that a perfectly competitive industry consists of 96 firms and fixed cost of an individual…

A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium is…

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: 2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph…

Q: s coincid

A: The marginal revenue curve is a horizontal line at the market price which implies perfectly elastic…

Q: For a monopolist, we know that the MARKET DEMAND CURVE they face is given by the equation: Qd = 100…

A: TR = P*Q MR = TR(Q+1) - TR(Q)

Q: Consider the competitive market for rhodium. Assume that no matter how many firms operate in the…

A: The supply schedule is given below:

Q: Use the profit maximising condition to advise on the quantity that the firm should produce and the…

A: Monopoly is a market situation where there is a single seller. The monopolist is price maker. There…

Q: @Macmillan Learning (Figure: David's Candle Company) David's Candle Company has a cost advantage…

A: The cost curve in economics is a function of the total quantity produced in an economy. Firms…

Q: Firm A is in food industry, and firm A makes total revenue of $2000 this month. In order to support…

A: Meaning of Cost Of Production: The term cost of production refers to the situation under which a…

Q: Pls help me with below homwork -) This is not assignment nor exam question, Marshall discussed…

A: Definition; Alfred Marshall is a dominant figure in British economics, and his most important book,…

Q: Use the figure above. Which of the following statements is correct?

A: Perfect competition is a theoretical market structure that represents the most competitive market…

Q: QUESTION 9 The figure shows the short run conditions of a firm in a perfectly competitive market. In…

A: Given in figure the price (which is equal to AR and MR in a perfectly competitive market) is lower…

Q: use the graph input tooi to heja you anawer the folowing questions. You wil not be graded on any…

Q: You start a business in a market where if you charge a price higher than the prevailing market price…

A: Different forms of market have different pricing condition as some markets allow firms to set the…

Q: e following incomplete table describes the costs faced by a firm as it produces an increas antity of…

A: TC=TFC+TVC AVC=TVC/Q MC=change in TC/change in Q fixed cost is independent of output produced.

Question

The following table provides information about long-run average cost curve of a firm:
Quantity
LRAC
100
50
200
43
300
39
400
39
500
44
600
52
O a. This cost structure is an example of natural monopoly.
O b. For the first 300 units of output, this firm has diseconomies of scale.
O c. For output levels greater than 400, the firm has economies of scale.
O d. For output levels between 300 and 400, the firm has constant returns to scale.

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

Refer to the graph shown, which depicts a perfectly competitive firm that maximizes profit. If the prevailing market price is $4: Price 8765432-0 1 ง C MC ATC 0 20 40 60 80 100 120 Output per day Show Transcribed Text LRAC Group of answer choices Economic profits are $500 and the quantity supplied from the firm is 200 units per day. Economic profits are $0 and the quantity supplied from the firm is 100 units per day. Economic profits are $100 and the quantity supplied from the firm is 100 units per day. Economic profits are -$100 and the quantity supplied from the firm is 80 units per day.
The accompanying graph depicts the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely) competitive firm. Move point A to identify the profit maximizing price and quantity for this firm. Price and Cost 20 19 18 17 16 DEHBEFOON OSION-O 15 14 13- 12 11 10 8 6 4 MR=D A Perfectly Competitive Firm A MC ATC 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity
QUESTION 8 Which of the following is true for monopoly and perfect competition? 1 points A. The demand for the B. Economic profits can O C. Marginal revenue is horizontal at the O D. Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost individual firm's product be sustained is perfectly elastic. indefinitely over industry equilibrium time. price.
K Big Top is the only circus in the nation. The graph shows its demand curve and marginal cost curve. Draw the marginal revenue curve Label it Draw a point at the firm's profit-maximizing output and price Draw a shape to show the consumer surplus Label it CS Draw a shape to show the producer surplus Label it PS S Consumer surplus equals and producer surplus equals s >>> Answer to 2 decimal places When the firm maximizes profit, the circus is OA. efficient, marginal revenue equals marginal cost OB. inefficient, marginal benefit exceeds marginal revenue OC. efficient, the marginal benefit from an additional ticket is greater than its marginal cost OD. inefficient, the marginal benefit from an additional ticket is greater than its marginal cost OE. inefficient, marginal revenue equals marginal cost because 1 50- 45- 40 35 30- 25 20- 15- 10- 5+ 0+ 0 Price and cost (dollars per ticket) D MC 100 200 300 400 500 600 700 800 900 Quantity (tickets per show) >>> Draw only the objects specified…
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Figure A Competitive Firm1.2 MC ATC AVC Given Pl =$7.00 P2 $8.50 P3 =$9.20 QI=100.00 A P3 B P2 P1 MR Quantity Q1 Refer to Figure A Competitive Firm1.2. At an output level of Q1, the average fixed cost is about O $0.70 O No answer text provided. O No answer text provided. O S0.80 %24
Please answer correct explain please asap please Don't answer by pen paper plz.
Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 100 90 70 60 ATC 40 30 20 AVC 10 + ++++ 10 15 20 3 30 35 o 5 QUANTITY (Thousands of jackets) 50 For each price in the following table, use the graph to determine the number ofr jackets this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero jackets and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 10 20 32 COSTS (Dollars)
If output is 1, total cost is 7, and total revenue is 10. What is the marginal revenue?
Figure 9.3 - Price or Cost 32199 11 10 6 3 2 H units. G O 40 units. O 60 units. O 80 units. 20 40 B 8 H MC C 60 Quantity ATC MR 80 100 Demand If the firm in Figure 9.3 used marginal cost pricing to determine its output and price. the output produced would be: 120
Cost and Revenue 12. 11 10- 65 43 MC ATC AVC 0 3 4 5 6 7 8 9 10 Quantity The above graph shows a firm's total revenue curve, O The firm could be operating in a perfectly competitive market. O The firm could be operating in a monopoly market. The firm must be in a perfectly competitive market. O The firm is defintly not operating in a perfectly competitive. 1 -MR
Using the graph below, calculate the firm's profits at the profit maximizing output 196 182 168 154 140 126 112 98 84 70 56 42 28 14 23 46 69 92 115 138 161 184 207 230 253 276 299 322 Quantity -P -- MR MC AC -10 100 250 Price