Refer to the diagram above. Which of the following explains the slope of the total revenue curve illustrated in this graph? Question 1 options: total revenue is shown as a straight line sloping up indicaates a perfectly competitive firm. the slope of the total revenue curve is determined by the price of the goods produced. at higher levels of output, diminishing returns will cause the total cost to slope downward steeply. the slope of the total revenue curve is explained by both of the first two statements above. TC$TRweb page designscosts

Total revenue is the total receipts from the sale of goods and services. The total revenue given in…

Answered: Which of the following explains the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues: TC = $830,000 VC = $525,000 TR = $428,000 Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns. is it Profit=TR-TC?
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
Suppose Madison operates a handicraft pop-up retail shop that sells rompers. Assume a perfectly competitive market structure for rompers with a market price equal to $20 per romper. The following graph shows Madison's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for rompers for quantities zero through seven (including zero and seven) that Madison produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 0 -25 □ 0 ☐ 1 2 3 5 QUANTITY (Rompers) 4 6 Total Cost 7 8 o Total Revenue Profit
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The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the short-run industry supply curve when there are 20 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 40 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 60 firms. PRICE (Dollars per ton) 80 72 Supply (20 firms) 64 58 Demand 48 Supply (40 firms) 40 32 2 24 16 8 ° 0 120 240 360 480 600 720 840 960 1080 1200 QUANTITY OF OUTPUT (Thousands of tons) Supply (60 firms) ? If there were 60 firms in this market, the short-run equilibrium price of steel would be $ Therefore, in the long run, firms would Because you know that perfectly competitive firms earn be $ per ton. At that price, firms in this industry…
QUESTION 6 Which of the following is a necessary condition for a firm to be able to bundle a new product with an existing one? consumers' willingness to pay for the two products are inversely related. the firm must operate in a perfectly competitive market. consumers must have a higher willingness to pay for the new product than for the older existing product. the two goods must be substitute products.
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The following figures depict the market supply and demand curves for a constant cost, competitive industry (left) and the per unit cost curves for a typical firm (right). For parts (a) and (c), below, you can again include your answers directly on the graph. A) Identify the short-run equilibrium in this market, indicating the price, aggregate quantity and the amount supplied by an individual firm. b) Explain why it is not a long-run equilibrium. c) Explain how the market would adjust to an equilibrium in the long-run
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.
After serving as President of the United States for eight years, Dena has retired from politics and has decided to become a wheat farmer. The market for wheat is perfectly competitive and the current market price for wheat is $10 per bushel. Dena is currently producing 8 bushels (Dena can only produce this good in whole units). Her total cost at 8 units of output is $88 and her variable cost at 8 units of output is $64. Dena knows that if she produces a 9th unit her total cost will become $97, and if she produces a 10th unit her total cost will become $110. Dena’s goal is to maximize her profits. Based on this information, identify whether each of the following would be true or false and briefly explain your reasoning. Dena is currently losing money in the short-run and she would be better off if she shutdown and produced zero. Dena is not currently profit maximizing at 8 units of output and she could increase her profits if she expanded output by one unit. Dena would increase her…

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	total revenue is shown as a straight line sloping up indicaates a perfectly competitive firm.
	the slope of the total revenue curve is determined by the price of the goods produced.
	at higher levels of output, diminishing returns will cause the total cost to slope downward steeply.
	the slope of the total revenue curve is explained by both of the first two statements above.