I want the answer MCATCAVC125 10 15 20 25 30 35 40 45 50Quantity (units per day)In the above figure, at what price does a perfectly competitive firm make zero economic profit?Select one:O a. $4 per unitO b. $8 per unitO C.$12 per unitO d. $16 per unitPrice and cost (dollars per unit)

A perfectly competitive market is one that has a large number of buyers and sellers, selling…

20 MC ATC AVC 16 12 8. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) In the above figure, at what price does a perfectly competitive fırm make zero economic profit? Select one: O a. $4 per unit O b. $8 per unit C. $12 per unit O d. $16 per unit Price and cost (dollars per unit)

20 MC ATC AVC 16 12 8. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) In the above figure, at what price does a perfectly competitive fırm make zero economic profit? Select one: O a. $4 per unit O b. $8 per unit C. $12 per unit O d. $16 per unit Price and cost (dollars per unit)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 15RQ: What prevents a perfectly competitive firm from seeking higher profits by increasing the price that...

See similar textbooks

Related questions

Q: 2. Questions and Problems 3 Firm A, one firm in a perfectly competitive industry, faces higher costs…

A: In case of perfect competition there are large number of firms selling identical products. There are…

Q: The perfectly competitive firm should produce in the a. short run if price is below average variable…

A: Perfect Competition- It is a marketplace where a large size of the market create similar products…

Q: $5.50 $5.00 $4.50 $4.00 MC ATC AVC $3.50 P= MR $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 25 50 75…

A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…

Q: Question 42 If a perfectly competitive firm finds that price is less than average total cost, but…

A: Answer: If the price is less than the average total cost it means the firm is earning losses. But it…

Q: Figure 16-12 Price 100 90 80 MC 'ATC 70 Fog 85 50 + 40 + 36 30 + 20 10 + MR 4 12 16 20,24 28 32…

A: Marginal revenue curve lies below the demand curve because the seller has to decrease the price in…

Q: 3. True or False? d. A firm that receives a price larger than its average variable costs but less…

A: In the short run, a firm may operate with excess profit, normal profit, and even incurring loss. But…

Q: 5. Figure: A Perfectly Competitive Firm in the Short Run Price MC ATC G -MR AVC E N P W B D Quantity…

A: In perfectly competitive market, firms are price takers. Firms do not have any control over the…

Q: 14 If a perfectly competitive firm wants to make any sales, what is the basis for pricing its goods?…

A: 14. If a perfectly competitive firm wants to make any sales,the basis for pricing its goods would be…

Q: Assume that the above cost data is for a perfectly competitive firm. Using this data answer the…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: Suppose that a firm in a perfectly competitive market has the following cost curves: 13- 12 11 10 MC…

A: A firm in the perfectly competitive firm produces at MC=P if P>min(AVC). min(AVC)=$4.5 so the…

Q: Firm Boperates in a perfectly competitive market. What is the profit maximizing price? O a) $11 O b)…

A: Firms in perfect competition are price takers meaning they accept the market price as given.

Q: $40 $35 $30 ATC AVC $25 P = MR $20 $15 $10 $5 $0 20 40 60 80 100 120 Output (Q) The diagram above…

A: Given

Q: Output Total Total (Q) Price Revenue Cost 10 $12.00 $140 20 $12.00 $220 30 $12.00 $380 40 $12.00…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: Figure 6.1 MC ATC AVC MR2 MR, 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total…

A: Here, it is given that firm is producing 60 units with the minimum average total cost of $4.

Q: Consider the following data facing a perfectly competitive firm: price = $20, quantity of output…

A: Answer: option (d) Explanation: Given: Price=$29Quantity produced=600 unitsAverage total…

Q: 1)When a perfectly competitive firm is at its profit-maximizing level of output, we can say that it…

A: In a market, a perfectly competitive firm is one who has to face a high degree of competition when…

Q: n perfect competition, what is the relationship between the demand for the firm’s output and the…

A: In perfect competition, There are a large number of sellers and buyers, each buyer and seller has an…

Q: Figure 8.13 refers to a perfectly competitive firm. FIGURE 8.13 $100 MC 90 80 AC 70 AVC 60 50 40 30…

A: In a competitive market there are large number of firms producing identical products thus acting as…

Q: The table shows the total cost for a firm in a perfectly competitive market where the market price…

A: A perfectly competitive firm is a price taker, charges the price equal to market equilibrium price

Q: rutabagas) (dollars) (dollars 12 1 10 22 2 20 28 3 30 30 4 40 31 5 50 34 60 45 7 70 59 8 80 80 The…

A: Profit is the difference between the total revenue and total cost. i.e. Profit = Total Revenue -…

Q: Question 3 Which statement is TRUE? O a. Economic profit is always positive in the short run O b.…

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Exhibit: Perfectly Competitive Firm Price per unit MC ATC $3.00 P. 2.00 1.90 1.00 100 250 300 400…

A: A perfectly competitive firm maximizes profit by producing at d=MC. It accepts the market price as…

Q: B) The figure below shows the total cost and revenue curves for a firm on the same diagram TC 60 50…

A: i) "Total cost represents the costs of producing something and in short run comprise of both fixed…

Q: 2. A profit-maximizing firm in a perfectly competitive industry has costs given by C = 80 + 2Q?,…

A: Firstly, it makes sense to define what perfect competition is. A perfectly competitive market is…

Q: 5. (a) What do we mean by “price taker”? Explain why a firm in perfect competition is a price taker.…

A: A perfectly competitive market is a market in which there are many buyers and sellers selling an…

Q: a. Find total revenues and marginal r b. What quantity of CDs would maximize profit? V 2.)…

A: Given The market price for lawn-mowing P=$27 Bob mows 10 lawns per day His daily cost TC = $280…

Q: Quantity of Output Total Cost $ MC 8.5 3.5 15 6.5 22 4 30.5 8.5 5. 45.5 15 a. What are the…

A: Hi, thank you for the question. Since there are multiple sub-parts posted, we will answer the first…

Q: image attached

A: The goal of a firm is to maximise profits or minimize losses. The firm are able to do this goal by…

Q: (a) What are the basic assumptions that need to be satisfied for a market to be called perfectly…

A: Perfect competition is type of market structure in which there are large number of buyers and…

Q: MC ATC AVC MR2 MR, 3D 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total revenue if…

A: In a market, a firm's cost and revenue curves help to understand the profit and cost analysis…

Q: In the short run, profits when a competitive firm shuts down are-$8200, and they are -$350 when the…

A: In the short run if the firm is earning losses and is unable to cover its variable cost then it…

Q: (a) Why the competitive firm faces a relatively horizontal demand curve. (b) The profit…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 3. Explain where a perfectly competitive firm's marginal revenue curve is located relative to price…

A: Perfect competition this is a type of a market structure.

Q: 2) Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or…

A: Long run: - it is the time period in which all factors of production become variable in other words…

Q: If the price of the goods sold by firm X operating in the Perfect Competition Market is 10 TL, the…

A: Average revenue = Total revenue / quantity

Q: Quantity (cases) Total Revenue (dollars) $75 Price Total Cost (dollars) $75 (dollars) $60 70 140 195…

A: please find the answer below.

Q: (Table: Total Cost and Output for All-Natural Frozen Yogurt) Use Table: Total Cost and Output for…

A: In perfectly competitive market, there are large number of firms selling identical goods.

Q: 1-Which price leads to the maximum profits? A) $40,000 B) $26,000 C) $30,000 D) $39,000 2- What are…

A: The total revenue is the total receipts collected from selling the goods in the market.…

Q: Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue TFC TVC TC…

A: Average Variable Cost (AVC) is Total Variable Cost (TVC) per unit of output.

Q: The perfectly competitive farmer's profit maximizing level of c is units of output MC ATC 12 P=MR…

A: We have to find following question.

Q: d. An individual firm in a perfectly competitive market must lower its price to sell more of its…

A: since you have asked multiple questions and according to our policy we can only solve the first…

Q: Firm A operates in perfect competition, and the price the firm faces is greater than its average…

A: Since you asked multiple questions, we will solve first question for you. In case you want any other…

Q: Consider a perfectly competitive firm's average total cost curve, average variable cost curve, and…

A: In pefect competition firm in long term generally earn normal profit . In short run firm must…

Q: lon 6 of 20 The graph shows the demand curve (D), average total cost curve (ATC), average variable…

A: Profit is maximised at a point where MR = MC. Using the following formula to calculate profit…

Q: MC ATC AVC MR2 MR, %3D 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total revenue if…

A: The formula is: Total revenue=Q*P Q=60 units

Q: A. If a firm operating in a perfectly competitive market doubles the amount it sells, what happens…

A: a) Firms are price taker in perfectly competitive market. So, when the firm doubles the amount it…

Q: Output 1 2 3 4 7 8 Total Cost 12 20 26 32 40 52 68 93 122 LO

A: In a perfectly competitive market, there are many firms producing identical goods. Firms do not have…

Q: Show what happens in the short run on both graphs when a new medical study shows soybeans to be…

A: In a perfect competition market, individual firms supply their goods at prices that are determined…

Q: Let's suppose that a perfectly competitive firm has the following revenue and cost data. How many…

A: As per the guidelines, we only answer one question at a time. So, I am answering the first one.…

Question

I want the answer

MC
ATC
AVC
12
5 10 15 20 25 30 35 40 45 50
Quantity (units per day)
In the above figure, at what price does a perfectly competitive firm make zero economic profit?
Select one:
O a. $4 per unit
O b. $8 per unit
O C.
$12 per unit
O d. $16 per unit
Price and cost (dollars per unit)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Property Rights, Bargaining And The Coase Theorem

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Briefly explain the reason for the shape of a marginal revenue curve for a perfectly competitive firm.
What are the four basic assumptions of perfect competition? Explain in words what they imply for a perfectly competitive firm.
Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
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?
If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?
What prevents a perfectly competitive firm from seeking higher profits by increasing the price that it charges?
What is a price taker firm?