Q: Determine and explain the profit maximization output of a perfectly competitive firm.
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Q: Quantity (pounds of Total revenue Total cost, (dollars) (dollars) cookies) 1 15 13 2 30 24 3. 45 39…
A: Microeconomics studies the economic behavior of individual units such as a firm, a market, a…
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A: Given information, Fixed cost= 100 ATC at 200 units= 200 ATC at 201 units= 201 Selling price= 500…
Q: Consider a perfectly competitive market for wheat in Denver. There are 80 firms in the industry,…
A: Answer; Note: Short‐run supply curve of a firm is the portion of the marginal cost curve that lies…
Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…
A:
Q: Given the operations of a peanut firm under perfect competition and assuming that the price of…
A: The price of the peanut butter = 35 The fixed cost = 50 Quantity = 5
Q: What is the short-run Shutdown condition for a perfectly competitive firm? P>AVCminimum…
A: In a market, a shutdown point refers to the point at which a firm is unable to recover its operating…
Q: A perfectly competitive frim has the total cost curve is given by:TC = 270+13q+0.4q2. What is the…
A: Variable cost is that cost component, which increases (decreases) with increase (decrease) in…
Q: Charlies's lawn-mowing service is a profit-maximizing.competitive firm. Bob mous lawns for $27 each.…
A: In perfect competition market firms are price taker . They have to accept the price determined by…
Q: The shut-down point for a competitive firm is in the short run is where
A: In the short run the shut-down point for a competitive firm is in the is where the average…
Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…
A: The rise or decrease in the cost of producing one more item or serving one more client is referred…
Q: The graph shows the marginal cost (MC), average total cost (ATC), and marginal revenue (MR) curves…
A: # a competitive firm produces output where P=MC. At this P=MC, from the given figure it is easy to…
Q: Explain the condition when an imperfectly competitive firm earns an abnormal profit with the help of…
A: Meaning of Monopoly: The term monopoly refers to the situation under which there is only an…
Q: Explain why a perfectly competitive firm earns zero economic profits in the long run.
A: In an economy, different types of markets exist to make an exchange of different types of products.…
Q: Consider the following information about a business Rodriguez opened last year: price = $5; quantity…
A: Profits are calculated by taking the difference between the total revenue that is earned and the…
Q: Revenue, Cost MC AC AVC E AR = MR R Output Which point in the diagram is the shut-down point for the…
A: The total cost incurred by a firm can be divided/split into two- fixed costs(TFC) and variable…
Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…
A:
Q: Refer to the diagram below:…
A: Answer - Shut Down Point - The point where firm is not able to recover there average variable cost…
Q: Given the graph below showing short-run cost curves for a competitive firm, at what price would the…
A: In perfectly competitive market, price is constant so it equal to marginal revenue. At profit…
Q: Consider the graph below. Should this firm stay oper shut down in the short run and why? MC ATC* AVC…
A: Over the short run, firm must get variable cost recovered to stay open in the market. A firm will…
Q: Explain the fact that the short-run supply curve for a price taking firm is that segment of its…
A: The short-run decisions on production for a perfectly competitive firm have direct implications on…
Q: Tomato Farms is selling tomatoes in a purely competitive market. Its output is 25,000 bushels, which…
A: Firms in perfect competition are price takers who maximizes profit by producing at P=MC
Q: Under what conditions will a firm shut down temporarily? Explain theoretically and graphically.
A: Firm would shut down temporarily,if it is not able to cover the fixed cost. For this,price has to be…
Q: Graphically explain the profit maximization condition of a perfect competitive firm.
A: In the perfectly competitive market, a firm experiences a situation that the average revenue will be…
Q: If a perfectly competitive firm incurs an economic loss, it should shut down immediately. try to…
A: Perfect competition is a market structure wherein there are several firms in the market that tend to…
Q: Given the following graph of a perfectly competitive fırm's cost structure, the firm's short run…
A: Short-run is a time period of one year or less than a year. And long term is a time period of more…
Q: The following diagram shows cost curves for a perfectly competitive firm. %24 SMC 2.60 ATC AVC 1.60…
A: Here, marginal cost, Average variable cost and average total cost curves are given.
Q: A firm will shut down in the short run if TR < TC P< ATC TR= TC P = MC P< AVC
A: The firm will shut down its operation in the short run if the firm is not able to meet its day to…
Q: Consider the graph of a firm in a perfectly competitive market to answer the question below: MC АТС…
A: At profit maximization, MR = MC and price is determined by the demand curve.
Q: Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of…
A: Perfectly competitive market is the one in which there are large number of buyers and sellers…
Q: Explain in detail how a perfectly competitive firm makes its profitmaximizing decision.
A: Perfectly competitive market:- The market structure in which there are no barriers on entry and exit…
Q: Consider the following information about a business Rodriguez opened last year: price = $5; quantity…
A: Accounting profit is the net income created by a company. Accounting benefit is a company's net…
Q: 5. Short-run equilibrium Consider a perfectly competitive market for wheat in Chicago. There are 120…
A: We are going to find the Supply schedule for 120 firms with the help of Supply schedule for a single…
Q: Consider a perfectly competitive market for wheat in San Diego. There are 80 firms in the industry,…
A: No of firms in the industry = 80 Supply curve of each firm starts with minimum AVC and is equal to…
Q: In the long run, a perfectly competitive firm makes O A) either a positive economic profit or a…
A: Perfectly competitive market is the market in which all firms produce homogeneous product and sell…
Q: A firm’s cost curves are given in the following table. (Photo) Complete the table. If the total…
A: Cost refers to the overall value of goods and services that producers spent in order to produce the…
Q: TRUE OR FALSE If a perfectly competitive firm shuts down in the short run, its total cost equals…
A: Perfectly competitive firm are those whose are price taker . They take the price which is formed by…
Q: McDonald's is a fast-food restaurant chain. Which of the following would be a long-run decision for…
A: Here, it is given that McDonald's has a fast-food resturant chain , which implies that it has many…
Q: Suppose that each firm in a perfectly competitive market has a cost of TC = 75 + 500Q - 5Q2 + 0.5Q3…
A: TC=75+500Q-5Q2+0.5Q3 VC=500Q-5Q2+0.5Q3AVC=500-5Q+0.5Q2 To minimize AVC, ∂AVC∂Q=0 Thus,…
Q: 2. Bob’s lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $27 each.…
A: In short-run, fixed costs are of no relevance or importance in making decision related to shut-down…
Q: What relationship determines whether or not a firm should stay open in the short run? A) The price…
A: Total cost is the total expenditure incurred by the firm on the production of final goods and…
Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…
A: SRTC = 8 +0.5q2 and MC = q TC = FC + VC Here from the total cost we can separate fixed cost and…
Q: Given the following graph of a perfectly competitive fırm's cost structure, the firm's short run…
A: A firm shuts down in short run when Price (MC) equals minimum point of AVC (= $1). A firm shuts down…
Q: If any of your answers are negative, put a minus sign in front of the number. You are given the…
A: We know , TC = TFC + TVC MC = TCn - TCn-1 TFC = AFC * Q TVC = AVC*Q TC = ATC*Q
Q: If a firm sells its output at a price greater than ATC, it will earn economic profit. Is this…
A: A firm produces at a point where the marginal revenues are equal to the marginal costs.
Q: Consider the price-taker market for sports jackets. The following graph shows the marginal cost…
A: in short run and long run the , the firm should continue the business of not it depends on the…
Q: In the figure provided below, which perfectly competitive firm (a, b or c) a. earns economics…
A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…
Q: The graph below shows the costs structure of a firm operating under pure or perfect competition in…
A: Curve M is Total cost curve (TC) Curve N is Total variable cost curve (TVC)
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- What is the firm’s shutdown price?The situation facing by firm “Smart”, a producer of running shoes, is shown in the following figure. What quantity does Smart Shoes produce? Answer: What is the price of a pair of Smart shoes? Answer: What is Smart’s economic profit or economic loss? Answer:For each of the following, is the business a price-taking producer? Explain your answers. a. A cappuccino café in a university town where there are dozens of very similar cappuccino cafés. b. The makers of Pepsi-Cola. Just answer a.
- What does acceptable loss mean for a competitive firm? Explain and Draw a graphTom, a math major, examines Jane's economics class notes and observes that when price-taking firms earn economic profit, they do not seem to produce a quantity that minimizes theircosts. Is he correct?Is there significance to this observation?Fill in the columns in the following table. What quantity should a profit-maximizing firm produce? Verify your answers with marginal reasoning. q TFC TVC MC Price TR TC Profit 0 $10 $0 $20 1 10 12 20 2 10 20 20 3 10 25 20 4 10 40 20 5 10 65 20 6 10 100 20
- Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price, output and costs incurred by Blue INK. Use the graph to answer the following questions: What is the Total revenue generated by Blue INK at the profit maximizing level of output?[ Answer in Numerical value only.i;e. 1,2,3,4,5] If the Cable Service Market turns into a Perfectly Competitive Market, what will be the total ammount of the service provided? [ Answer in Numerical value only] If the market turns into a Monopoly market again, what will be the total deadweight loss created? [ Answer in Numerical value only]Assume that apples are produced in a perfectly competitive market. Grande’s Orchard is a typical firm that grows and sells apples. Currently, Grande earns zero economic profit, and the market price of apples is $10 per bushel. (a) Draw a correctly labeled graph showing Grande’s demand curve, average total cost curve, and marginal cost curve, and show the profit-maximizing quantity, labeled QG . (b) Suppose an increase in the popularity of apple cider increases the demand for apples. How will the increase in the demand for apples affect Grande’s economic profit in the short run? Explain. (c) What will happen to Grande’s economic profit in the long run? Explain.Assume that apples are produced in a perfectly competitive market. Grande’s Orchard is a typical firm that grows and sells apples. Currently, Grande earns zero economic profit, and the market price of apples is $10 per bushel. (a) Draw a correctly labeled graph showing Grande’s demand curve, average total cost curve, and marginal cost curve, and show the profit-maximizing quantity, labeled QG . (b) Suppose an increase in the popularity of apple cider increases the demand for apples. How will the increase in the demand for apples affect Grande’s economic profit in the short run? Explain. (c) What will happen to Grande’s economic profit in the long run? Explain. BoldItalicUnderline
- The accompanying graphs represent the market for soybeans, a perfectly (purely) competitive market, and Roy's Soys, an individual firm in the market for soybeans. The market and the firm are currently in long‑run equilibrium at point A. Show what happens in the short run on both graphs when a new medical study shows soybeans to be highly carcinogenic. On the market graph, you will shift a curve or curves. On the firm's graph, use Price 2 to draw a new price line for the firm. On both graphs, indicate the new equilibrium point with point B. Now, show the changes that get both graphs back to long‑run equilibrium. Use shift(s) for the market and Price 3 for the firm. Indicate the new long‑run equilibrium with point C.Ed produces table lamps in the perfectly competitive desk lamp market. Fill in the missing values in the following table Suppose the equilibrium price in the desk lamp market is $50. How many table lamps should Ed produce, and how much profit will he make? If next week the equilibrium price of desk lamps drops to $30, should Ed shut down? Explain. Output / Week Total Cost AFC AVC ATC MC 0 $100 1 $150 2 $175 3 $190 4 $210 5 $240 6 $280 7 $330 8 $390 9 $460 10 $540As fast as you can please! Adrian decides to open a new ready-to-wear skirts brand. While making his study, he noticed that his fixed cost of production is 120 dollars. Following the information.Jacob wants to do a marginal analysis to help him decide if he shall enter the market. a. Define and find the shut-down price and the shut-down quantity for Jacob’s firm Explain the way you identify these two values. b. Find the marginal revenue and determine the quantity that maximizes Jacob’s output? Explain your answer and provide the formula. c. According to your calculations, what is your advice for Jacob? Should he stay or leave the market? Explain your answer. d. Calculate the value of the profit realized by the firm.