The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in acompetitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the verticalaxis (quantity-0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to drawit.To refer to the graphing tutorial for this question type, please click herePrice and cost18151413121019/21SUBMIT ANSWER13 OF 21 QUESTIONS COMPLETED28MacBook Pro금□F7F8F9F1oF2F3F5

We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Answered: The graph below shows the marginal cost…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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100 90 90 00 80 COSTS (Dollars) 70 70 00 60 50 40 30 20 10 ATC AVC MC 0 0 5 10 15 20 25 30 QUANTITY (Thousands of snapbacks) 35 35 40 45 50 For every price level given in the following table, use the graph to determine the profit-maximizing quantity of snapbacks for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. Price (Dollars per snapback) 10 20 32 40 50 60 Quantity (Snapbacks) Produce or Shut Down? Profit or Loss?
The graph shows the Cost curves for a profit maximizing firm in a competitive market. If the market price is $30 and the firm produces at the profit maximum quantity, what is the amount of the total fix cost
In competitive markets, there are many small firms with each firm unable to influence the market price. Suppose company ABX operates in the wheat market. The company produces and markets wheats at a Price = $20 per container. The firm’s total costs are given as: TC = 50 +2Q + 3Q2 What is the firm Fixed Cost? Why? Also, use a graph to support your answer
What is the firm’s total variable cost at this level of output? $ e. What is the firm’s fixed cost at this level of output? $ f. What is the firm’s profit if it produces this level of output? Instructions: If the firm is taking a loss, enter this as negative (−) profits. $ g. What is the firm’s profit if it shuts down? Instructions: If the firm is taking a loss, enter this as negative (−) profits. $ h. In the short run, should this firm continue to operate or shut down?
Use the graph to answer the following question: Is the running shoes market in long run equilibrium? Explain.
Let's consider a company that produces a good Z, in a perfectly competitive market. The expression for the total cost of this undertaking is as follows: C( q) = 72 + 2q2 Graph the marginal cost, average cost, and average variable cost curves of this company. Your chart should be accurate. Also include the break - even point (SR) and closing point (SF).
Farmer Lee grows strawberries. The average total cost and marginal cost of growing strawberries in the long run for an individual farmer are illustrated in the graph to the right. Suppose the market price is $7.05 per box. If so, then farmers will strawberries until the market price is $ number rounded to two decimal places.) per box. (Enter a numeric the market for a real enter exit Price and cost (dollars per box) 10- 9- 8- 5- 3- 2- 1. 0 MC ATC 10 20 30 40 50 60 70 80 90 100 Quantity of strawberries (boxes per week) o
What happens to a competitive firm whose cost function exhibits decreasing marginal cost everywhere? Construct a concrete cost function of this type and carry out the search for the profit-maximizing output.
Microeconomics
The following graph shows the demand curve, as well as the AVC, ATC and MC curves of a company selling rolled oats in a perfectly competitive market. Use the graph to answer the questions. The goal of the company is to maximize its profit. How many boxes of rolled oats should it sell to attain this goal? What price will it charge? How much profit does this firm make per month? Will this company produce or shut down in the short run? Why? Will this firm exit the market for rolled oats in the long run or not? Why?
Suppose the cost of renting a snowy bus were to fall from $30 per hour to $20 per hour. What do you expect would happen in the short-run (stage 1 equilibrium) to (a) the number of cones produced by each snowy bus; (b) total production of cones in the market, and (c) economic profits of snowy bus businesses? Briefly explain (you don't need to do any calculations, just explain inwords).
Consider what happens in the long run when demand falls in a constant cost industry. For instance, think about the market for pizza in a small city after the city's biggest textile mill shuts down. The accompanying graph begins in a long-run equilibrium. Move the appropriate curve or curves on the graph to illustrate the fall in demand and the resulting change that returns the market to long-run equilibrium. Finally, move point E to the new equilibrium position. Price of pizza Market for Pizza E Also, answer the following questions about the market's response to this fall in demand. a. The marginal cost of production is lowest at the short-run equilibrium b. When firms cut prices, they often do so in dramatic ways. The local pizza shops are most likely to offer "Buy one, get one free" in the short-run equilibrium c. The market price is less than the firm's average cost of production in the .The market price is equal to the average cost of production in the d. Restating the previous…

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