the short run, if price (P) is less than average total cost (ATC) will a perfectly competitive firm necessarily shut down? Explain why or why not using a hypothetical numerical example.
Q: -4 -3 -2 Determine whether or not the distribution is a discrete probability distribution and select…
A: Step 1: Step 2: Step 3: Step 4:
Q: ii. Indirect taxes iii. Net investmentiv. Depreciationv. Corporate income taxesvi. Personal income…
A: Indirect Taxes: These are taxes levied on commodities and product instead of the earnings or…
Q: Seneca Hill Winery recently purchased land for the purpose of establishing a new vineyard.…
A: Considering the revised profitability forecasts for the Chardonnay grape variety in a matured stage,…
Q: Describe the challenges which the Small Developing Island States (SIDS) face and discuss how…
A: Approach to solving the question: research and explanation Detailed explanation: Small Developing…
Q: Consider the scenario. The country Global-Land is really small and only has 500 In 2023 in total,…
A: The scenario involves a country called Global-Land with:500 residents.Annual spending on specific…
Q: 8 Write an anecdote (150-190 words) about a situation when you had to complain. Use one of these…
A: I reflected on my personal experience to craft a detailed and relatable anecdote. I aimed to capture…
Q: Hubert and Kate are farmers. Each one owns a 20-acre plot of land. The following table shows the…
A: We are given that both Hubert and Kate own 20 acre plots of land each.Let us start with Hubert:We…
Q: ECO 313 ENGINEERING ECONOMICS QUESTION 1: (a) Mention and explain any two factors which influence…
A: Hope this helps
Q: Answer in step by step with explanation. Don't use Ai and chatgpt.
A: 1)Indicate the Profit-Maximizing PointLocate the profit-maximizing quantity:This is where the…
Q: Which of the following utility functions represent preferences of a consumer who does not exhibit…
A: Hope this helps
Q: How did the Dodd-Frank Act help increase accountability and oversight after the global finanicial…
A: The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, was a major…
Q: 4 Question 8 School placement office 1 pts O Place where counselors know your program of study and…
A: ReferencesRamsey, W. M. (1930). Our Placement Organization. The Journal of Business Education, 4(2),…
Q: Q1-. Consider three regions of a country with the following hypothetical income distribution data…
A: Here is the Lorenz curve plot for the three regions, showing the income distribution across…
Q: Which factor could contribute to the depreciation of the Canadian dollar? a A global decrease…
A: Hope this helps
Q: A venture capitalist, willing to invest $1,000,000$1,000,000, has three investments to choose from.…
A: Step 1:Let X is random variable represents returning profit or loss P(x ) representes the…
Q: Answer in step by step with explanation. Don't use Ai and chatgpt.
A: In economics, technological advance refers to the improvement in the methods, processes, or tools…
Q: The textbook theory of Pigou tax is somewhat misleading because it tells us that the tax on goods…
A: The statement is true, and here's why:Understanding the textbook theory of a Pigovian tax:A Pigovian…
Q: K The following table gives data on the price of rye and the number of bushels of rye sold in 2023…
A:
Q: 9. Private solutions to correct for externalities Consider the following scenario: Suppose that a…
A: 1. In the given scenario, the private solution used to resolve the externality of live music is…
Q: Leonard, a company that manufactures explosion-proof motors, is considering two alternatives for…
A: Given DataMARR (Minimum Acceptable Rate of Return): 18% (or 0.18)Years: 10Option 1 Calculations1.…
Q: 3. Calculate the missing information in the table 3.1. Table 3.1 Year Real GDP Nominal GDP GDP…
A:
Q: #18 A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw…
A: To calculate the profit earned by the restaurant today, we need to consider various factors,…
Q: Don not solve list the objective function and contraints using variables
A: Variables:Let the variables represent the amount invested in each period:x1: Investment in period…
Q: It wont let me submit again since they dont know how to do the 2nd part without the first, please…
A: Approach to solving the question:Let's first solve questions 1-3:1. Long-Run Average Total Cost…
Q: Which firm is experiencing economies of scale? Show necessary solutions to support your claim
A: To determine which firm is experiencing economies of scale, we need to analyze how the cost per unit…
Q: Q9 “China's central bank Monday conducted a total of 10 billion yuan (about $1.4 billion) of…
A: To determine which measure of money will not be immediately affected by China's central bank…
Q: Answer in step by step with explanation. Don't use Ai and chatgpt. Answer in all options
A: Coupling and decoupling refer to the relationship existing between the economic growth of a country,…
Q: TRUE or FALSE question TAXES AND SPENDING Article I of the U.S. Constitution empowers Congress “to…
A: Approach to solving the question: Detailed explanation: The statement "The U.S. federal government…
Q: do fast
A: Looking at the graph, after trade is introduced, the domestic price will adjust to the world price…
Q: Using the following information: JAM$ million Subsidies 0 Gross national product at market prices…
A: Step 1:To derive each of the requested items based on the provided data, let's go through the…
Q: Answer in step by step with explanation. Don't use Ai and chatgpt. Answer in all options.
A: Each source, with loans from the Small Business Administration (SBA) to venture capitalists, the…
Q: All of the following are true regarding the main difference between market benefits and non-market…
A: All of the following are true regarding the main difference between market benefits and non-market…
Q: Consider a consumer with utility U(x) = log x₁ + √x2 for 2-good bundles. 1. Are the consumer's…
A: Homothetic preferences are those where the marginal rate of substitution (MRS) is homogeneous of…
Q: Consider the balance between protecting domestic industries and promoting free trade within the…
A: Trade Remedies in COMESAThe Common Market for Eastern and Southern Africa (COMESA) aims to promote…
Q: Compare three alternatives on the basis of their capitalized costs at /= 13.00% per year and select…
A: To determine the best option among the three alternatives based on capitalized costs, we calculated…
Q: Which of the following is a limitation of the Purchasing Power Parity (PPP) theory? a It…
A: Option a) It applies only to large economies: This option is incorrect because Purchasing Power…
Q: Don't use Ai. Answer in step by step with explanation.
A: When the price of the good changes then it leads to the movement in demand or supply curve. Whereas,…
Q: Would it be advantageous to borrow money if you expected prices to rise? Would you want a fixed-rate…
A: Step 1:To borrow money means to obtain funds from a lender, such as a bank or individual, with the…
Q: Engineering Econ HW9 Q1
A: The problem requires the computation of the depreciation expense and the book value of the asset. A…
Q: Use the table below to answer question below Demand and Supply Table Quantity Quantity Price…
A: This problem asks for the equilibrium price and quantity of candy when the amount supplied equals…
Q: What are the challenges faced by Small Developing Island States (SIDS) and how honing negotiation…
A: Role of Negotiation Skills:Honing negotiation skills is necessary for SIDS to address these…
Q: Suppose that Austria and Belgium have the unit labour requirements for producing steel and brooms…
A: The table shows unit labor requirements for Austria and Belgium to produce one unit of steel and one…
Q: 4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a…
A: Profit Maximization in Perfect Competition:In a perfectly competitive market, a firm maximizes…
Q: Q9 With reference to Question 8 above, the measure of money that will not be immediately affected by…
A: The correct answer is likely d) Quasi money. Explanation:Quasi-money typically includes highly…
Q: Using traditional methods it takes 94 hours to receive an advanced driving license. A new training…
A: Given information:- μ0 (hypothesized mean) = 94- x̄ (sample mean) = 92- n (sample size) = 120- σ…
Q: Joe won $365,000 a year for life in the state lottery. Use a labor-leisure choice analysis to answer…
A: Effect of Lottery Winnings on Joe's Budget Line:Winning $365,000 shifts Joe's budget line…
Q: 1. What does 'GDP at 1990 prices' mean? 2. a) What is the term used for GDP before adjustments for…
A: Approach to solving the question:1. What does 'GDP at 1990 prices' mean?"GDP at 1990 prices"…
Q: Based on what you know about the Classical Economic School of Thought and the Keynesian Economic…
A: Hope this helps
Q: Light emitting diode (LED) light bulbs have become required in recent years, but do they make…
A: The solution to determining whether it makes financial sense to replace incandescent bulbs with LED…
Q: Q6 The table attached contains information about an economy that produces only pens and books. The…
A: Option a) R800: This option is incorrect because it doesn't account for the correct quantities and…
the short run, if price (P) is less than average total cost (ATC) will a perfectly competitive firm necessarily shut down? Explain why or why not using a hypothetical numerical example.
Step by step
Solved in 2 steps
- The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (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 here Price and cost 18 15 14 13 12 10 19/21 SUBMIT ANSWER 13 OF 21 QUESTIONS C OMPLETED 28 MacBook Pro 금□ F7 F8 F9 F1o F2 F3 F5“In a perfectly competitive market, firms always operate at the lowest per-unit cost." Is the preceding statement true or false? Explain your answer.Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost structure of the typical ice cream producer is as follows. Average total cost is equal to 50 1 1 ATC(Q) +;Q, average variable cost is equal to AVC(Q) =÷Q, and marginal cost is equal to 2 MC(Q) = Q. a.) Give a formula for the typical ice cream producer's average fixed cost AFC(Q). What is the typical ice cream producer's total fixed cost?
- In the long run, perfectly competitive firms make zero economic profit. If this is the case, why does the firm even bother producing? Why not exit the market completely?The graph below gives marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm. Note that marginal revenue (MR) is not shown. Suppose the firm operates in a perfectly competitive market and acts to maximize its profit. which of the following is/are true? I. At a price of 1.5, the firm will shut down in the short-run. II. At a price of 0.5, the firm will shut down in the short-run. III. At a price of 2.5, the firm will make a positive economic profit. 7 MC АТС AVC 3 2 1 1 Quantity 2. 4. Priceplease correctly explain this and not copy paste.
- What is the formula for profit maximization by firm ? Why does this result in the marginal cost curve becoming the same as the supply curve for firms in perfect competition? what is the difference between the short run and long run ? Why does this difference matter in our discussion of firm behavior?The graph shows the marginal cost (MC), average total cost (ATC), and marginal revenue (MR) curves for a perfectly (or purely) competitive firm. Note, for such firms, the demand (D) curve is the same as the MR curve. Answer two questions, specifying to at least one decimal place. How many units should this firm produce to maximize profit? number of units: What price will the firm receive for each unit at the profit maximizing level out output? $ MC/MR $12 9.7 5.6 D=MR MC ATC 6.6 10.2 12 16 QuantitySuppose that the long-run cost function for a perfectly competitive firm in the personal computer business is C(q) = 4g + 2500 for q> 0. How many units does this firm produce in the long-run? What will be the price in the long-run? What is the profit of the firm in the long-run? The firm produces type your answer..... units of output. The price is $ type your answer.... in the long-run. The firm's profit is $ type your answer.... the long-run. in
- Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal cost of growing peaches for an individual grower are illustrated in the figure to the right. Assume that the market price for peaches is $30.00 per box. What is the profit-maximizing quantity for peach growers to produce? boxes. (Enter your response as an integer.) At this level of output, profit will be $. (Enter your response rounded to the nearest dollar.) Peach growers will earn positive economic profit in the short run at any market price above $ per box. (Enter your response rounded to one decimal place.) Price (dollars per box) 40- 36- 32- 28- 24 20 16- 12- 8 4- 10 MC 20 30 40 50 60 70 80 Output (boxes of peaches per day) ▬▬ ATC 90 100 QThe demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 + P. The short run cost function of a representative firm in this market is TC = 150 + 3q2. According to these information Analyze this firm’s position in terms of shut down condition. Should this firm operate or shut-down in the short run? Could you solve the 4. question as follows shut down and operate TR= TFC= TVC= TC = PROFİT=Juan makes dining room chairs in a perfectly competitive industry. He is looking for economic advice and tells you the following data about his business. (Assume cost curves have their standard shapes.) Total revenue is $120,000, Total fixed costs are $100,000 Total variable costs are $110,000 Marginal cost is $200/unit Quantity produced is 600 units What will you suggest to Juan? A: Shut down immediately B: Do not shut down and increase production C: Do not shut down but decrease production D: Do not shut down and do not change the current production level.
