Based on the graph above, answer all the questions below. a) Justify the type of market structure the firm is operating in. b) What is the profit-maximizing price and output for this firm? c) Calculate the amount of profit or loss at the equilibrium point and state the type of profit. d) Is this firm operating in the short-run or long run? e) Explain ONE (1) characteristic and name ONE (1) company in this market.

Based on the graph above, answer all the questions below. a) Justify the type of market structure the firm is operating in. b) What is the profit-maximizing price and output for this firm? c) Calculate the amount of profit or loss at the equilibrium point and state the type of profit. d) Is this firm operating in the short-run or long run? e) Explain ONE (1) characteristic and name ONE (1) company in this market.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 6SQP

See similar textbooks

Similar questions

Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
The WipeOut Ski Company manufactures skis for beginners. Fixed costs are 30. Fill in Table 7.16 for total cost, average variable test, average total cost, and marginal cost.
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.
What two lines on a cost curve diagram intersect at the zero-profit point?