Economics: Principles, Problems, & Policies (McGraw-Hill Series in Economics) - Standalone book
20th Edition
ISBN: 9780078021756
Author: McConnell, Campbell R.; Brue, Stanley L.; Flynn Dr., Sean Masaki
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 4DQ
To determine
Productive efficiency and allocative efficiency .
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following figure shows the revenue and cost curves for a firm X.
RM
10
a.
b.
C.
7
6
LO
5
4
3.5
0
20 25 30
MC
40
AVC
AC
AR=MR
Units
If a firm X achieves productivity efficiency, what will be the total revenuel
generated
At what price will a firm stop operating? Please explain.
If the market price is RM4.00, what is the total profit or total loss.
LO 11.2: I can calculate marginal cost, revenue, and profit and distinguish between marginal cost
and average cost.
Suppose that Patrick's Handmade Puppets has a production cost that is given by
C(x) = 2,000 + 130x – 0.6x2 + 0.002x3 dollars
(0
Consider table 3.1. What is the dollar amount of average variable cost per unit at the production level of 600 units?
TC=3205
Production
(units)
0
100
Select one:
O a. 4.04
O b. 4.34
Oc 4.74
O d. 5.04
200
300
400
500
600
700
Rent
$300
$300
$300
$300
Wages
$200
$410
$650
$900
$1,200
$300
$300
$1,520
$300
$1,905
$300 $2,300
Supplies Tools
$0
$100
50
$100
$150
$200
$250
$300
$350
$200
$300
$400
$500
$600
$700
$800
Total Cost
$600
$960
$1,350
$1,750
$2,200
$2,670
$3,205
$3,750
3205
700
300
2,205 TVC
1
-
2205/600=
3.675
A
Chapter 11 Solutions
Economics: Principles, Problems, & Policies (McGraw-Hill Series in Economics) - Standalone book
Knowledge Booster
Similar questions
- 7. Suppose a firm has only three possible plant-size options, represented by the ATC curves shown in the figure. What plant size will the firm choose in producing (a) 50, (b) 130, (c) 160, and (d) 250 units of output? Draw the firm's long-run average-cost curve on the diagram and describe this curve. LO9.4 ATC 0 M 150 ATC2 ATC₁ ATC3 80 240arrow_forward4. Various measures of cost Suppose the imaginary company of Roobek is a small, Jackson-based American apparel manufacturer specializing in athleisure. The following table presents the brand's total cost of production at several different quantities. Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost (Pairs) (Dollars) (Dollars) 0 1 2 3 4 LO 5 6 120 200 240 285 340 425 540 Fixed Cost Variable Cost (Dollars) (Dollars) Average Variable Cost (Dollars per pair) Average Total Cost (Dollars per pair)arrow_forwardThe WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for totalcost, average variable cost, average total cost, and marginal cost.arrow_forward
- .ll touch LTE 10:05 PM O 9 37% O A docs.google.com In a perfectly competitive market, what happens to a firm's profit-maximizing level of output if the price of the product falls? * Because the firm maximizes profit by setting marginal revenue equal to O marginal cost, an increase in the price of the product will reduce the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will not affect the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will reduce the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will increase the firm's profit-maximizing level of output.arrow_forwardhelp please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingarrow_forwardFigure 7.7. What is the marginal gainin output from increasing the number of barbers from4 to 5 and from 5 to 6? Does it continue the pattern ofdiminishing marginal returns?arrow_forward
- Can someone please help me with this question?arrow_forwardComplete the table above. Graph AVC , ATC, and MC on the same graph. Suppose market price is $30. How much will the firm produce in the short run? How much are total revenue? Suppose market price is $50. How much will the firm produce in the short run? What are total profits?arrow_forwardThe table below shows cost data for WipeOutSki Company which manufactures skis for beginners. If the company's fixed costs are $30, what is the marginal cost of five units of output? Variable Cost Fixed Cost Total Cost Average Variable Cost Average Total Cost Marginal Cost Quantity $30 1 $10 $30 $25 $30 $45 $30 $70 $30 $100 $30 B. $135 $30 O $45.00 O S30.00 O S25.00 2) 3. 4) 69arrow_forward
- please fast answer.arrow_forward34. How do i solve this questionarrow_forwardDo firms in a perfectly competitive market exhibit productive efficiency? O Productive efficiency, the economizing of society's scarce resources, is guaranteed for a perfectly competitive firm in the long run as well as in the short run. Productive efficiency, when P=Minimum ATC, is guaranteed in the long run. It is possible that a firm will produce its output at a unit cost higher than the lowest unit cost possible in the short run. Perfectly competitive firms will realize productive efficiency, the point where P=MC, in the long run but not in the short run. Perfectly competitive firms will never reach productive efficiency in the long run or the short run. It is too easy for firms to enter and exit the marketplace for this condition ever to be realized.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
