Total Variable Cost Output (Q) 0. Total Fixed Cost 20 1 20 7 3S 10 3.3 15 3.75 21 42 20 20 20 20 The table above shows the cost structure of a firm in a perfectly competitive market. If the market price is $3, a. The firm suffers a loss and is better off shutting down. b. The firm suffers a loss but is better off producing the output level where MR-MC. c. The market price is greater than the minimum average variable cost. d. None of the above 234 5

Total Variable Cost Output (Q) 0. Total Fixed Cost 20 1 20 7 3S 10 3.3 15 3.75 21 42 20 20 20 20 The table above shows the cost structure of a firm in a perfectly competitive market. If the market price is $3, a. The firm suffers a loss and is better off shutting down. b. The firm suffers a loss but is better off producing the output level where MR-MC. c. The market price is greater than the minimum average variable cost. d. None of the above 234 5

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter8: An Introduction To Perfect Competition

Section: Chapter Questions

Problem 4QFR

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A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
Larry's Linens produces white cloth napkins for restaurants in a perfectly competitive market. The given table shows output and total costs for one day of production. Output TVC TFC TC MC ATC AVC 50 50 20 50 100 35 50 150 60 50 200 90 50 250 125 50 300 165 50 350 210 50 400 260 50 450 315 50 a. Complete the cost schedule for this firm by calculating TC, MC, ATC, and AVC. Remember to record the MC figures between the rows of output and total cost. Output TVC TFC TC MC ATC AVC 50 50 20 50 100 35 50 150 60 50 200 90 50 250 125 50 300 165 50 350 210 50 400 260 50 450 315 50 (Round your responses to two decimal places.)
Question in image. Stuck on this economic question for hours. If you don't know how to slove it, let someone else try before rejecting it Thanks :)
Ssessm /assignm f'CollegeBoard AP Classroom Unit 3 Progress Check: FRQ 2. Quantity of Output Total Cost 0. $12 1. $14 $18 3. $24 4. $32 5. $42 $54 9. 7. $68 The table above shows the total cost function for a typical firm producing hats in a perfectly competitive market. The market price for hats is $9 per hat. (a) Calculate the average variable cost of the fifth unit. Show your work. (b) What is the firm's profit-maximizing quantity of hats? Explain using marginal analysis. (0) Draw a correctly labeled graph showing the firm's demand and marginal cost curves, and show the profit-maximizing quantity of nats determined in part (b). (d) If the rent of the building the firm occupies increases, what will happen to the firm's profit-maximizing quantity of autput in the short run? Explain. B IU Type here to search P国

Calculate the average total, fixed, and marginal costs for a “competitive” firm with the following production cost schedule. q Total Cost ATC AFC MC0 10 100 12 200 16 300 26 400 38 500 75 600 120
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Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market. Output Fixed AFC Variable AVC Total ATC MC Cost Cost cost 1 $50 50/1=50 $30 30/1=30 30+50=80 80/1=80 NA 2 $50 50/2=25 $50 50/2=25 50+50=100 100/2=50 (100-80)/(2-1)=20 3 $50 50/3=16.67 $80 80/3=26.67 50+80=130 130/3=43.33 (130-100)/(3-2)=30 4 $50 50/4=12.50 $120 120/4=30 50+120=170 170/4=42.50 (170-130)/(4-3)=40 5 $50 50/5=10 $170 170/5=34 50+170=220 220/5=44 (220-170)/(5-4) =50 What can you expect from an industry in perfect competition in the long run? That is, what will the price be? What quantity will be produced? What will be the relation between marginal cost, average cost, and price?
Larry's Linens produces white cloth napkins for restaurants in a perfectly competitive market. The given table shows output and total costs for one day of production. Output TVC TFC TC MC ATC AVC 0 50 50 50 35 50 60 50 200 90 250 125 300 165 50 350 210 50 400 260 50 450 315 50 100 150 0 20 50 50 a. Complete the cost schedule for this firm by calculating TC, MC, ATC, and AVC. Remember to record the MC figures between the rows of output and total cost. Output TVC TFC TC MC ATC AVC 0 0 50 50 20 50 100 35 50 150 60 50 200 90 50 250 125 50 300 165 50 350 210 50 400 260 50 450 315 50 888 (Round your responses to two decimal places.) b. Draw a scale diagram and plot ATC, AVC, and MC. Use the multipoint drawing tool to plot the ATC, AVC, and MC curves. Properly label the curves. (Plot MC at the midpoint of the output intervals.) Carefully follow the instructions above, and only draw the required objects. c. Below which price should this firm choose to produce zero output? This firm should…
The table below shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Quantity 0 It must fall. 100 200 300 400 500 600 It must rise to offset the increased cost. Total Cost Variable Cost (dollars) (dollars) $1,000 $0 1,360 360 1,560 560 1,960 2,760 4,000 5,800 Suppose the fixed cost of production rises by $500 and the price per unit is still $8. What happens to the firm's profit-maximizing output level? The firm will shut down. O It will remain the same. 960 1,760 3,000 4,800
Question 3 The following graph shows the price, marginal cost, and average cost curves for a firm. MC Price (RM) ATC 40 27 16 12 MR 250 500 570 Quantity (Units)
The firm will maximize profits by producing____ units of outputs (Enter your response as an integer.)
this is econ. answer only a,b,c