1.With a new understanding of economic analysis, Corn Mart, wants your opinion on what todo. Currently, they are producing 7 bushels of corn per day. The corn market is verycompetitive in your city – therefore, it is perfect competition. The market price is $4.а.Fill in the blanks.All numbers are daily measurementsVariableTotalOutput Fixed CostAFCCostAVCCostАТСMCMR1101.20X23.004.0046.509.006.12.0015.50819.509.26.001033.00a. Is producing 7 bushels of corn a good idea? Or, should they produce a differentamount? If sU, Now many

As given market price is $4. By using following formula to calculate missing values of table Total…

1. With a new understanding of economic analysis, Corn Mart, wants your opinion on what to do. Currently, they are producing 7 bushels of corn per day. The corn market is very competitive in your city - therefore, it is perfect competition. The market price is $4. a. Fill in the blanks. All numbers are daily measurements Variable Total Output Fixed Cost AFC Cost AVC Cost АТС MC MR 1 10 1.20 X 3.00 3 4.00 4 6.50 9.00 12.00 7 15.50 19.50 26.00 10 33.00 a. Is producing 7 bushels of corn a good idea? Or, should they produce a different amount? If so, now many

1. With a new understanding of economic analysis, Corn Mart, wants your opinion on what to do. Currently, they are producing 7 bushels of corn per day. The corn market is very competitive in your city - therefore, it is perfect competition. The market price is $4. a. Fill in the blanks. All numbers are daily measurements Variable Total Output Fixed Cost AFC Cost AVC Cost АТС MC MR 1 10 1.20 X 3.00 3 4.00 4 6.50 9.00 12.00 7 15.50 19.50 26.00 10 33.00 a. Is producing 7 bushels of corn a good idea? Or, should they produce a different amount? If so, now many

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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Similar questions

A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?
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.
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May and Raj me the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the com. If they work independently, they will each earn 100. If they decide to work together and both lower their output, they call each earn 150. If one person lowers output and the other does not, the person who lowers output will earn $1 and the other person will capture the entire market and will earn 200. Table 10.6 represents the choices available to Mary and Raj. What is the best choice for Raj if he is sole that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoners dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output. (Each results entry lists Rajs earnings first, and Marys earnings second.)
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The accompanying table presents the expected cost and revenuedata for the Tucker Tomato Farm. The Tuckers produce tomatoesin a greenhouse and sell them wholesale in a price-taker market.a. Fill in the firm’s marginal cost, average variable cost,average total cost, and profit schedules.b. If the Tuckers are profit maximizers, how many tomatoesshould they produce when the market price is $500 perton? Indicate their profits.c. Indicate the firm’s output level and maximum profit if themarket price of tomatoes increases to $550 per ton.d. How many units would the Tucker Tomato Farm produce ifthe price of tomatoes fell to $450 per ton? What would bethe firm’s profits? Should the firm stay in business? Explain.
cc4. a)What is the largest number of thingamabobs that can be produced and sold for Yaster Inc. to break even? thingamabobs. Round to the nearest thingamabob. b)How many thingamabobs should Yaster Inc. produce and sell in order to maximize profit? thingamabobs. Round to the nearest thingamabobs.
Adani Shantigram is a picturesque township on Ahmedabad-Gandhinagarhighway. The statement ‘The Good quality life’ shows the commitment ofthe developer towards ensuring that the residents enjoy all the amenitiesand services in the township at least cost and inconvenience. In order toensure competitive outcome, ATRICO (Adani Real Estate Arm) hasensured that for all the important services, many service providers arepresent, so that none of them can charge a high monopoly price from theresidents. Therefore, there are 4 milk parlours, 4 laundromats, 4photocopiers, 4 beauty saloons and 4 grocers in the township. Thisnumber ‘4’ has been decided in a high level meeting, where this wasdiscussed that having less than 4 will result in duopoly/tight oligopoly,and having more than 4 will require more space and therefore notpreferred.Last month, the ladies in ‘Water Lily’ complained that the prices chargedby beauty saloons in the township are very high. In order to address thecomplaints, details…
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Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?