Please see the attached11 Assume that the following data is for a profit-maximizing manufacturer:Quantity$ Total Cost1001402160319042405300637074508550Refer to the above information to answer this question. What is the value of the break-even price?** hint - What are the fixed costs? What are the Variable cost values?Select one:O a. $20.O b. $40.O C. $60.O d. $50.O e. $30.

Breakeven point refers to the situation where the total cost of the production is equal the total…

Assume that the following data is for a profit-maximizing manufacturer: Quantity $ Total Cost 100 140 1 2 160 190 3 14 240 15 300 370 450 550 8 Refer to the above information to answer this question. What is the value of the break-even price? ** hint - What are the fixed costs? What are the Variable cost values? Select one: O a. $20. O b. $40. O c. $60. O d. $50. O e. $30.

Assume that the following data is for a profit-maximizing manufacturer: Quantity $ Total Cost 100 140 1 2 160 190 3 14 240 15 300 370 450 550 8 Refer to the above information to answer this question. What is the value of the break-even price? ** hint - What are the fixed costs? What are the Variable cost values? Select one: O a. $20. O b. $40. O c. $60. O d. $50. O e. $30.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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Similar questions

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.
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?
Are there fixed costs in the lung-run? Explain briefly.
Why will profits for films in a perfectly competitive industry tend to vanish in the long run?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?