Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 22, Problem 6WNG
(a)
To determine
Graphical illustration of a
(b)
To determine
Graphical illustration of a perfectly competitive firm that incurs losses but that will continue operating in the short run.
(c)
To determine
Graphical illustration of a perfectly competitive firm that incurs losses but that will shut down in the short run.
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Homework 4B
Draw the MR, MC, AVC, ATC, Demand, supply, MC and MR for the
following situations. For each show (as done in class). For each of these
situations show the total revenue, total cost area, and shade the profit or loss
area, and if the situation is a shut down state why it should shutdown.
a. A perfectly competitive firm showing a profit
b. A perfectly competitive firm showing a loss but not a shut-down
c. A perfectly competitive firm at a break-even point
d. A monopolist showing a profit
e. A monopolist showing a loss but not a shut-down
f. A monopolist at a break-even point
g. Difference between a monopolist and a perfectly competitive firm for
a profit situation on the same graph space.
These diagrams, pertain to a perfectly competitive firm producing output q and the
industry in which it operates. In the long run we should expect:
MC
ATC
AVC
MR P
Ono change in the number of firms in this industry.
firms to leave the industry, market supply to fall, and product price to rise.
firms to leave the industry, market supply to rise, and product price to fall.
firms to enter the industry, market supply to rise, and product price to fall.
Refer to the figure above for the perfectly competitive firm. If the market price is $300, the firm will have:
a. normal profit
b. economic profits
c. economic losses but will continue to operate in the short run d. economic losses and will shut down in the short run
e. none of the above
Chapter 22 Solutions
Economics (MindTap Course List)
Ch. 22.1 - Prob. 1STCh. 22.1 - Prob. 2STCh. 22.1 - Prob. 3STCh. 22.1 - Prob. 4STCh. 22.2 - Prob. 1STCh. 22.2 - Prob. 2STCh. 22.2 - Prob. 3STCh. 22.2 - Prob. 4STCh. 22.3 - Prob. 1STCh. 22.3 - Prob. 2ST
Ch. 22.3 - Prob. 3STCh. 22.3 - Prob. 4STCh. 22.4 - Prob. 1STCh. 22.4 - Prob. 2STCh. 22 - Prob. 1QPCh. 22 - Prob. 2QPCh. 22 - Prob. 3QPCh. 22 - Prob. 4QPCh. 22 - Prob. 5QPCh. 22 - Prob. 6QPCh. 22 - Prob. 7QPCh. 22 - Prob. 8QPCh. 22 - Prob. 9QPCh. 22 - Prob. 10QPCh. 22 - Prob. 11QPCh. 22 - Prob. 12QPCh. 22 - Prob. 13QPCh. 22 - Prob. 14QPCh. 22 - Prob. 15QPCh. 22 - Many plumbers charge the same price for coming to...Ch. 22 - Prob. 17QPCh. 22 - Prob. 18QPCh. 22 - Prob. 1WNGCh. 22 - Prob. 2WNGCh. 22 - According to the accompanying table, what quantity...Ch. 22 - Prob. 4WNGCh. 22 - Prob. 5WNGCh. 22 - Prob. 6WNGCh. 22 - Prob. 7WNGCh. 22 - Prob. 8WNGCh. 22 - Prob. 9WNGCh. 22 - Prob. 10WNG
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Similar questions
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