Please see how I've responded to the 2 questions below...Do you concur are am I off track here. What will the dollar amount of economic gain or economic loss be?The amount of loss would be Quantity*(ATC-Price)= 9*(17.5-16)=$13.5 What will be the price and quantity where the firm will shut down?Price where there is not able to recover average variable cost in the market. Shut down price is $12 and Quantity is 7 units **Text Transcription for Educational Website:****Questions:**1. What will the dollar amount of economic gain or economic loss be?2. What will be the price and quantity where the firm will shut down?**Graph Explanation:**The graph illustrates several key economic curves used in microeconomics to determine pricing and production levels for firms. The horizontal axis represents quantity (Q), while the vertical axis represents price in dollars ($).**Curves Shown:**1. **MC (Marginal Cost):** This upward-sloping curve shows the cost of producing one more unit of a good.2. **ATC (Average Total Cost):** This U-shaped curve represents the total cost per unit of output. It initially declines, reaching a minimum point, and then rises.3. **AVC (Average Variable Cost):** This curve lies below the ATC and represents the variable cost per unit of output.4. **D = AR (Demand = Average Revenue):** This horizontal line indicates that the firm is a price taker, commonly associated with perfect competition, where Price = Demand = Average Revenue.5. **MR (Marginal Revenue):** This downward-sloping line represents the additional revenue gained by selling one more unit.**Points of Interest:**- The intersection of MR and MC determines the optimal output level for maximizing profit.- The shutdown point is where the price falls below the AVC curve, meaning the firm cannot cover variable costs and should cease production to minimize losses.- At quantity 4, the ATC is above the demand curve, indicating an economic loss.- At quantity 9, where the MC intersects MR, is the profit-maximizing output.- The shutdown price is at a price level of 14, where the AVC meets the demand curve.Overall, this analysis allows firms to make informed decisions about production levels, pricing, and potential shutdown scenarios.

The firm maximizes profit by producing at MR = MC and charges the maximum price consumers are…

Answered: What will the dollar amount of economic…

What will the dollar amount of economic gain or economic loss be? What will be the price and quantity where the firm will shut down? MC 22 ATC 18 17.5 AVC 16 14 13 12 D = AR MR 79 11

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.
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At these levels of output the marginal revenue in the manufactured items market is and the marginal revenue in the semimanufactured raw materials market is . At these prices, the price elasticity of demand in the manufactured items market is and the the price elasticity of demand in the semimanufactured raw materials market is . (Hint: ED=PMR−P��=�MR−�) What are the total profits if the company is effectively able to charge different prices in the two markets? . If the company is required by law to charge the same per-ton rate to all users, the new profit-maximizing level of price and output are per ton and tons respectively. The total profits in this situation is .
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BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 4.00 3.50 Monopoly Outcome 3.00 2.50 Profit ATC 2.00 Loss 1.50 1.00 MC 0.50 MR 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of cans of beer) Suppose that BYOB charges $2.50 per can. Your friend Dmitri says that since BYOB is a monopoly with market power, it should charge a…