b) Refer to Figure 1. The time period in Figure I c) Refer to Figure 1. Find the firm's ATC when profit is maximized Atc = d) Refer to Figure 1. Find the firm's AVC when profit is maximized e) Refer to Figure 1. Find the value of Average Fixed Cost (AFC) when 17 units are produc f) Refer to Figure 1. Find Total Fixed Cost (TFC) 3) Refer to Figure 1. Find the profit maximizing quantity of the perfectly competitive f a) Refer to Figure 1. Find the firm's maximum profit (or loss)

b) Refer to Figure 1. The time period in Figure I c) Refer to Figure 1. Find the firm's ATC when profit is maximized Atc = d) Refer to Figure 1. Find the firm's AVC when profit is maximized e) Refer to Figure 1. Find the value of Average Fixed Cost (AFC) when 17 units are produc f) Refer to Figure 1. Find Total Fixed Cost (TFC) 3) Refer to Figure 1. Find the profit maximizing quantity of the perfectly competitive f a) Refer to Figure 1. Find the firm's maximum profit (or loss)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1E: The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales...

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The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomacs closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $450. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut. What is the arc cross elasticity of demand between Potomacs oven and the competitive Spring City model? Would you say that these two firms are very dose competitors? What other factors could have influenced the observed relationship? If Potomac knows that the arc price elasticity of demand for its ovens is 3.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?
A firm in a competitive market receives $880 in total revenue and has marginal revenue of $20. The firm's average revenue is $_____________ , and ___________units were sold.
(19) If a firm is a price taker, then the demand curve for a single firm is Select one: a. perfectly inelastic. b. perfectly elastic. c. the same slope as market demand. (20) A profit-maximizing decision must be made about whether to keep a bed & breakfast operating. Until the place sells, the mortgage of $3000/month, a sunk cost, must be paid. If the bed & breakfast operates, costs rise by $4000 per month, but revenue will be only $6000 per month. Until the building can be sold, Select one: a. it is best to ignore sunk costs and keep the bed & breakfast operating. b. It is best to shut down the bed and breakfast since it is taking a loss. c. it is best to keep the bed & breakfast operating because it is profitable.
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Bavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q Where Q is the number of wine decanters produced monthly. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What quantity would maximize profits? What is the optimal price for Bavarian Crystals to charge?
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Title: Profit-maximizing behavior in perfectly competitive factor markets The value of a firm’s marginal product of labor (VMPL)(VMPL)left parenthesis, V, M, P, L, right parenthesis equals the marginal revenue product of labor (MRP_L)(MRPL)left parenthesis, M, R, P, start subscript, L, end subscript, right parenthesis. What kind of market does this firm sell its product in? Choose 1 answer: A. a monopoly market B an oligopoly market C. a monopsony market D a perfectly competitive market E a monopolistically competitive market
If a company with market pewer is not making enongh profit (in equilibrinm), a. the price will drop, thus increasing total revenue because demand is elastic. b. price will increase thins increasing total income because demand is inelastic. c. it will exit the industry in the long run if the economic benefit is negative. d. it will expand sales until they reach the unit elastic point on demand. Market power a. it is the ability to increase the price without losing all sales. b. it exists whenever the firm faces a downward sloping demand curve. c. the greater the less elastic is the demand. d. the smaller, the more positive is the cross elasticity of demand. e All of the Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
A firm has the following total costs, where Q is output and TC is total cost: QTC0$ 1001110213031604200525063107380846095501065011760 Say the firm is in a perfectly competitive market. If the current market (equilibrium) price is $ 70, at what output level will the firm as a profit maximizer produce at? Say the market price rises to $ 100. At what output level (as a perfect competitor) will this produce at? How much profit is the firm making at a price of $90? Based on this calculation, do you expect firms to enter or leave this market? Say instead this firm is a monopoly. If the firm maximizes profit at an output level where marginal revenue equals $ 80, what output level will this be?
A firm in perfect competition is producing 42 units of a product. They only produce this one type of product and earn a total revenue of $525. The demand line for that product crosses the y-axis at $12.50. True or false?