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- Explain in words why a profit-maximizing film will not choose to produce at a quantity where marginal cost exceeds marginal revenue.What two lines on a cost curve diagram intersect at the zero-profit point?Lisa lawn Company (LLC) is a lawn mowing business in a perfectly competitive market for lawn mowing services. The following table sets out Lisa's cost Quantity(lawns per hour) Total cost (dollars per lawn 0 $30 1 40 2 55 3 75 4 100 5 130 6 175 when Lisa shuts down, what will be her economic loss?
- Price (dollars per packet of chips) Quantity demanded (millions of packets of chips per year) Quantity supplied (millions of packets of chips per year) 4 135 26 5 104 53 6 81 81 7 68 98 8 53 110 9 39 121 C: Harry-Chips is a firm in the potato chips industry. Harry-Chips produces 10 million packets of chips per year at an average total cost (ATC) of $4. What is Harry-Chips short-run profit or loss per year? Explain your answer in detail. D: Given your answer in part d, would new firms enter or existing firms exit the market? What would be the long-run impact on Harry-Chips’ profit or loss? Explain in detail.Question Calculate MC, AVC, and total fixed costs for the data below: Output Total Cost 0 20 1 25 2 30 3 35 4 40 5 45 6 50 7 55 8 60 Sketch the MC and the AVCcurves. Given that each output is sold at $8.5, calculate Average Revenue, Marginal Revenue, and profitSuppose a perfectly competitive firm is operating in short run. The information of MR, Q,ATC and AVC are 15 taka, 60 unit, 45taka and 35 taka respectively. Calculate firm’sprofit/loss and total fixed cost. From these calculations and based on all the giveninformation, can you conclude about the firm’s decision in short run? Explain your reasoningwith the help of a suitable diagram. Show all the relevant information in yourdiagram.[Q=profit maximizing output and MR=marginal revenue]
- Indicate on the graph the areas that represent Total Revenue, Total Cost, and Profit.a. When P>ATCb. When P<ATCc. When P=ATCA local pizza shop has hired you as a consultant to help it compete with national chains inthe area. Because most business is handled by these national chains, the local shop operates asa price taker. Using historical data on costs, you find that short-run total costs each day aregiven bySTC = 10 + q + 0.1q^2,where q is daily pizza production.a. What is this pizza shop’s short-run supply curve?b. If the market price is $5.00, what is the pizza shop’s daily production quantity andprofits?c. Suppose the pizza shop wants to know the lowest price such that it can breakeven (i.e., maintaining a net profit of zero). Please help the firm find this pricePlease no written by hand A profitable firm becomes unprofitable following the ban of cheap plastics used in its production. Show this on the cost and revenue graph, the profit graph, and the production graph. Be specific in your labels, indicating carefully the shifts in the curves, if any.( Hand graph please)
- A pastries company 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, $400 for the fifth, $450 for the sixth, and $500 for the seventh. First. Create a table that shows the company's output, total cost, marginal cost, average cost,variable cost, and average variable cost. Second. At what price is the zero-profit point? At what price is the shutdown point? Third. 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 AVC curves to illustrate your answer and show the profit or loss. Fourth. 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 AVC curves to illustrate your answer and show the profit or loss.A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost Average Variable Cost 1 $250 $700 $950 $700 2 $250 $925 $1175 $225 3 $250 $315 4 $250 $360 5 $250 $400 6 $250 $450 7 $250 $550 If the company sells the computers for $550, is it making a profit or a loss? How big is the profit or loss? If the firm sells the computers for $315, is it making a profit or a loss? How big is the profit or loss? We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?Explain the differences between constantcost, increasing-cost, and decreasing-cost industries.