2. In the graph below, name the curves A, B, C and D Quantity (units per day) 3. In the graph above, indicate the following a. Price at which a firm makes a positive profit b. Price at which the firm makes zero economic profit c. The exact shutdown point d. The price at which the firm must exit (leave the market) e. The price at which the firm makes a loss but stays in the market Costs per unit (dollars per unit)

2. In the graph below, name the curves A, B, C and D Quantity (units per day) 3. In the graph above, indicate the following a. Price at which a firm makes a positive profit b. Price at which the firm makes zero economic profit c. The exact shutdown point d. The price at which the firm must exit (leave the market) e. The price at which the firm makes a loss but stays in the market Costs per unit (dollars per unit)

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

See similar textbooks

Similar questions

The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total variable costs are 20 for one aquarium, 25 for two units, 35 for the three units, 50 for four units, and 80 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the Profit-maximizing quantity of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.
Briefly explain the reason for the shape of a marginal revenue curve for a perfectly competitive firm.
Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
What prevents a perfectly competitive firm from seeking higher profits by increasing the price that it charges?
What are the four basic assumptions of perfect competition? Explain in words what they imply for a perfectly competitive firm.
Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for 72 each. The fixed costs of production are 109. The total variable costs are 54 for one unit, 84 for two units, 114 for three units, 134 for four units, and 270 for five units. 111 the fauna of a table, calculate total revenue, marginal revenue, total cost and marginal cost for each output level (one to five units). On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves. What is the profit maximizing quantity?