<The graph on the right shows the marginal revenue, marginal cost, and averagetotal cost curves for a firm in a perfectly competitive market.If this firm produced at the profit-maximizing output level, what would be the size ofthis firm's profits or losses?1.) Using the rectangle drawing tool, illustrate the size of this firm's profits or lossesif it produces at the profit-maximizing output level. Label the area appropriately.Carefully follow the instructions above and only draw the required object.CETTEPriceQuantityMarginalCostAverageTotal CostMRQ ←If some sellers exit a competitive market, how will this affect its equilibrium?1.) Using the 3-point drawing tool, show the impact if some sellers exit a competitivemarket. Label your new curve appropriately.2.) Using the point drawing tool, show the new equilibrium price and quantity. Labelthis point 'A'.Carefully follow the instructions above and only draw the required objects.SCIEEPrice1098-7-6-266QuantityS₁C

Note: Due to guidelines, I can answer only the first question. Perfect competition is a type of…

The graph on the right shows the marginal revenue, marginal cost, and average total cost curves for a firm in a perfectly competitive market. If this firm produced at the profit-maximizing output level, what would be the size of this firm's profits or losses? 1.) Using the rectangle drawing tool, illustrate the size of this firm's profits or losses if it produces at the profit-maximizing output level. Label the area appropriately. Carefully follow the instructions above and only draw the required object. Quantity Marginal Cost Average Total Cost MR

The graph on the right shows the marginal revenue, marginal cost, and average total cost curves for a firm in a perfectly competitive market. If this firm produced at the profit-maximizing output level, what would be the size of this firm's profits or losses? 1.) Using the rectangle drawing tool, illustrate the size of this firm's profits or losses if it produces at the profit-maximizing output level. Label the area appropriately. Carefully follow the instructions above and only draw the required object. Quantity Marginal Cost Average Total Cost MR

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

Only typed answer
The following graph plots daily cost curves for a firm operating in the competitive market for demin overalls. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per overalls) 50 45 40 35 15 10 5 0 0 2 MC ATC AVC 10 12 4 8 14 16 QUANTITY (Thousands of overallses per day) 18 20 In the short run, given a market price equal to $15 per overalls, the firm should produce a daily quantity of The rectangular area represents a short-run Profit or Loss On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. of $ overallses. thousand per day for the firm.
4. Profit maximization in the cost-curve diagram Suppose that the market for black sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. PRICE (Dollars per sweater) 50 y ATC AVC 45 40 35 30 25 20 15 10 5 0 MC + 02 4 6 8 10 12 14 16 QUANTITY (Thousands of sweaters) 18 20 Profit or Loss ?
Illustrate to the right, a graph showing a company being profitable in a competitive market in the Long Run selling its product at Market Price (MP*) based on its Average Variable Cost (AVC) and Average Total Cost (ATC) and Marginal Cost (MC). Identify each key point on the graph. Observe the Short - Run Loss information illustrated in the graph to the right. With respect to Price (P*"), Average Variable Cost (AVC), Average Total Cost (ATC), Marginal Revenue (MR), and Marginal Cost (MC), what assumption would you make if the firm was selling its product at P What would happen if this were to continue in the long run? Is there a Shut Down point? ** ? Notice that MR = P
The Invisible Hand Principle states that individuals' independent efforts to maximize their gains will generally be beneficial for society and result in the socially optimal allocation of resources (Need help? Read chapter 4.6 of the textbook, here: https://playconomics.com/textbooks/view/playconomics4-2019t3/part2/ch4/s6) in any type of market. particularly in the short run. if the market is perfectly competitive. if firms are free to enter but not to exit the market. None of these.
Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.
Using the table (Check if the values are correct), answer the questions below: a. What is the firms total fixed cost b. Suppose the price of the product is 20 - What is the firms output level? - What is its profit (or loss)-per-unit at that output level? $ - What is its total profit? $ c. Now suppose the price of the product is $10. - What is the firm’s profit-maximizing output level? - What is the firm's profit or loss per-unit? $ - What is the firm's total profit (or loss)? $ d. At a price of $10, will the firm produce? e. If the price remains $10, what will happen to this firm in the long-run?
1. Assume a perfectly competitive market is represented by the functions Qd=-4p+ 400 and Qs=p. If a firm produces in this market subject to a total cost function of = TC 2Q2+25Q+ 100 determine the amount of revenue, the total cost, profit this firm will make. Note: this is not a realistic TC function, it is used for easy math purposes only)
Then, plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output.
Farmer Brown grows peaches. The average total cost and marginal cost of growing peaches for an individual farmer are illustrated in the graph to the right. Assume the market for peaches is perfectly competitive and that the market price is $40 per box. Also assume that farmer Brown is producing the amount of peaches that maximizes profits. Use the rectangle drawing tool to shade in farmer Brown's profit. Properly label this shaded area. Carefully follow the instructions above, and only draw the required objects. Price and cost (dollars per box) 48- 44- 40- 36- 32- 28- 24- 20- 16- 12- 8- 4- ATC MC ▬▬▬▬▬▬▬▬▬ Price 0 10 20 30 40 50 60 70 80 90 100 Quantity of peaches (boxes per month in 1000s)
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.