The graph below shows cost curves for a firm operating in a perfectly competitive market.Note:20Blue curve = AVCGreen curve = ATCRed curve = MCBlack line is demandQuantity of ApplesSuppose that the equilibrium price is $17.66 (black line). This firm is earningOLossesO ProfitsOZero Economic Profits (Break-even point)Price of Apples

Answer- Need to find- The firm is earning Given in the question -

The graph below shows cost curves for a firm operating in a perfectly competitive market. Note: 20 Blue curve = AVC Green curve = ATC Red curve = MC Black line is demand 10 Quantity of Apples Suppose that the equilibrium price is $17.66 (black line). This firm is earning O Losses O Profits O Zero Economic Profits (Break-even point) | Price of Apples

The graph below shows cost curves for a firm operating in a perfectly competitive market. Note: 20 Blue curve = AVC Green curve = ATC Red curve = MC Black line is demand 10 Quantity of Apples Suppose that the equilibrium price is $17.66 (black line). This firm is earning O Losses O Profits O Zero Economic Profits (Break-even point) | Price of Apples

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 21 please solve
16. In the short run, the profit maximization for a firm in a perfectly competitive market would be: the marginal revenue is equal to the market price the marginal revenue is equal to the average revenue The market price is equal to the marginal cost O the marginal revenue is greater than the marginal cost
$50 ATC $45 MC $40 $35 P= MR $30 AVC $25 $20 $15 $10 $5 $0 25 50 75 100 125 Output (Q) The diagram above shows a Perfectly Competitive firm in the short-run. This firm will maximize its profit by choosing the Output (Q) level: Select one: O a 60 O b. 100 O c. 75 O d. 50
Question 25 Use the graph below to answer the following question: MC AVC # Q5 P4 P3 Ⓡ P2 ↑Price P1 Q1Q2 Q3 Q4 ATC Quantity If the market price is less than P3 and greater than P2, in the short run, the perfectly competitive firm will earn O positive economic profit zero economic profit. O negative economic profit and shut down. O negative economic profit but continue to produce output.
am. 122.
Which of the following is an expression of profit for a perfectly competitive firm? Profit for a perfectly competitive firm can be expressed as ⒸA. Profit=(PxQ)-(TCxQ), where P is price, Q is output, and TC is total cost. OB. Profit=P-MC, where P is price and MC is marginal cost. OC. Profit=PxQ, where is price and Q is output. O D. Profit=P-ATC, where P is price and ATC is average total cost. O E. Profit= (P-ATC) XQ, where P is price, Q is output, and ATC is average total cost.
The perfectly competitive farmer's profit maximizing level of output when price is $2 is ___ units of output Cost per unit 296 O 700 200 700 1000 200 0 MC 1000 ATC
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
16. In the short run, the profit maximization for a firm in a perfectly competitive market would be: the marginal revenue is equal to the market price the marginal revenue is equal to the average revenue The market price is equal to the marginal cost O the marginal revenue is greater than the marginal cost
16. In the short run, the profit maximization for a firm in a perfectly competitive market would be: the marginal revenue is equal to the market price the marginal revenue is equal to the average revenue The market price is equal to the marginal cost O the marginal revenue is greater than the marginal cost
Which of the following best explains why a firm in a competitive price-taker market must take the price determined in the market? The short-run average total costs of firms that are price takers will be constant. O If a price taker increased its price, consumers would buy from other suppliers. O Firms in a price-taker market will have to advertise in order to increase sales. There are no good substitutes for the product supplied by a firm that is a price taker.
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)