Q: Assume that the cost data in the following table are for a purely competitive producer: Average…
A: a) Yes, $66exceeds AVC (and ATC) at a loss-minimizing output. using the MR=MC rule it will produce 9…
Q: Discuss how the production theory and price determinations help businesses achieve both their…
A: The Theory of Production is defined as an effort to explain the principles that are followed by…
Q: Discuss the economic conditions that are necessary to achieve productive and allocative efficiency…
A: Productive efficiency: The productive efficiency exists at a level where per unit cost of producing…
Q: in short run even if it makes negative profit. Use well labeled
A: A competitive firm may incur losses in the short run(SR) as there are some fixed cost(FC) in the…
Q: In the long run, fixed costs are
A: Total Cost: The total cost of a commodity refers to the sum of fixed costs (FC) and variable cost…
Q: Explain why clear understanding of the environment within which it operates is important for…
A: Business: The organization or an individual engaged in commercial activities with the aim of earning…
Q: which of the following statements is incorrect? a) Price equals marginal cost. b) Firms are price…
A: Let us first analyse the type of market the question is talking about. From the first option, that…
Q: In perfect competition, firms set price equal to marginal cost. Why can’t firms do this when there…
A: In the perfectly competitive market, firms are the price takers as they produce identical product…
Q: What happens to the value of resources when losses are present? If a firm making losses goes out of…
A: The value of resources decreases when the firms make losses as it would mean that the revenue earned…
Q: Do entry and exit occur in the short run, the long run, both, or neither?
A: In the short run, the firms have one or more fixed factors of production. The firms cannot change…
Q: business deals with creation or production of goods like tables, chairs, and cabinets.
A: A Business is an organization or enterprise usually engaged in economic, commercial, industrial, or…
Q: Explain what is economic profit?
A: Hi! Thank you for the question but as per the guidelines, we answer only one question at one time.…
Q: Which of the following is CORRECT? Select one: If a firm is technologically efficient, it is always…
A: Technological Efficiency: A firm is said to be technically efficient when it started producing…
Q: How much profit or loss does the firm make at the selected output level?
A: The additional cost incurred in the manufacturing of one more unit of a good or service is known as…
Q: Assume firms decide to enter the market, how will this affect market price and quantity in the long…
A: In a market with perfect competition, every manufacturer offers the same products or services. There…
Q: The following table shows the total revenue and total cost of a firm at the various quantities of…
A: Total cost is the sum of all the costs that a firm incurs for the production of a good. The total…
Q: Describe the course of events in a competitive market following the adoption of a new technology.…
A: Adoption of new technology leads to increase in productivity which is shown by increase in the…
Q: Consider the following production chain for bread. Assume that a Farmer grows wheat, and sells this…
A: Value added is the difference in cost of a good or service when it moves from one stage to other.
Q: Some producers do not stop their production when they face loss in their production. Why?
A: Shut-down decision signifies a short-run decision taken where a firm decides whether to operate or…
Q: An example of a perfectly competitive industry is: A. cell phone service B. the automobile industry…
A: In a perfectly competitive market, there are many buyers and sellers. Firms do not have any control…
Q: f the marginal product equals the average product, we are at the _____________ point of the…
A: Marginal product is the change in total product with respect to change in input. Average product is…
Q: Faced with rising costs , when should a firm choose to shut down , for example in (a)in the short…
A: a) In the short run, there are three possibilities. If price/average revenue > average variable…
Q: Small “Mom and Pop firms,” like inner city grocery stores, sometimes exist even though they do not…
A: “Mom and Pop firms” is a small independent business entity where the ownership and operations are…
Q: Productive efficiency means output (production) is produced in the long run at
A: A perfectly competitive market is the type of market structure in which several buyers and sellers…
Q: Why must the marginal revenue be equal to the marginal cost for a producer? Explain.
A: Marginal revenue (MR) is the increase in revenue that results from the sale of one additional unit…
Q: Explain how the long run differs from the short run in pure competition.
A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…
Q: According to the above Table. What is the profit maximising level of production for the competitive…
A: To solve this question you have to calculate marginal cost first.
Q: what are the inefficiencies of an imperfect competition ? what are the benefits of having a…
A: Imperfect competition is that market structure which does not include Perfect competition. It…
Q: The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinational enterprise that…
A: Monopoly is a structure of market in which there is only one firm producing commodity and has market…
Q: Explain market conditions in the long run
A: In the long run, perfectly competitive marketplaces look different than they do in the short run.…
Q: Assume that the cost data in the following table are for a purely competitive producer: Average…
A: Total product is the sum total of all the output produced using all inputs. Average total cost is…
Q: (i) Will this firm produce in the short run? (Click to select) No Yes (ii) If it is…
A: “Hey, since there are multiple sub part questions posted, we will answer the first three subpart…
Q: Assume the price of a product in a perfectly competitive firm is $20 and currently it is making…
A: *Given the perfectly competitive price = $20 *Currently the firm is making a minimum loss.
Q: Suppose that Jacques, Julia, Cat, and Guy are potential suppliers of catering services for weddings.…
A: Given: There are 4 potential suppliers of catering services. Name Cost Jacques $50,000…
Q: How would you calculate the marginal cost of your firm's output? (think of a single product, not an…
A: Marginal cost can be understood as the additional cost incurred by the firm to produce an additional…
Q: Use this table to answer the following question. Output Total Variable Cost $1 $20 $2 $24 $3…
A: The total cost is the total expenditure done by producer in the production process. There are two…
Q: In a fishery the long-run harvest function (harvest volume) is H(E) = aE – bE², with a, b…
A: Harvest function : H(E) = aE - bE2 Total Cost function : TC (E) = cE Total Revenue : TR (E) = pH(E)…
Q: Only one firm able to produce profitably in a market given demand and costs describes a ____?
A: A monopoly market's features enable the sole seller both the market operator and the value creator.
Q: Which of the following is true concerning purely competitive industries?
A: The perfect competition market consists of a large number of sellers who are price takers as the…
Q: In perfect competition , firms set price equal to marginal cost . Why can't firms do this when there…
A: In the perfectly competitive market. firms are price takers as they produce identical products and…
Q: Lisette owns a bakery. If she expands the size of her bakery but her average total cost of producing…
A: Here, Lisette being the owner of the bakery shop experiences constant returns to scale.
Q: The correct answer to whether it should be produced is that the firm should produce in the short…
A: The decision of whether a good should be produced further depends on price and average variable…
Q: Utilize the graph above, which illustrates average fixed costs, average variable costs, average…
A: The given graph below highlights the perfectly competitive market Therefore I represents Average…
Q: In perfect competition market the goods which are sold are ___________ in nature
A: # In perfect competition market structure, sellers are large in numbers and they are selling similar…
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- Buffalo Bill has a potato chip company, Buffalo’s Chips. He is currently losing money on every bag of chips he sells. Mrs. Bill, who has just completed an economics class, tells Bill he could make a profit if he adds more machines and produces more chips. How could this be possible? What is Mrs. Bill assuming about the output range in which Bill is currently producing?In the long run, fixed costs areThe reason why the most efficient firms in a Melitz industry make greater profits under free trade is due to the fact that they A. Operate under increasing marginal costs. B. Operate under FDI. C. Operate under low transport costs. D. Operate under increasing returns to scale. Explain your answer in up to 200 words and using a diagram
- Productive efficiency means output (production) is produced in the long run atThe reason why the most efficient firms in a Melitz industry make greater profits under free trade is due to the fact that they A. Operate under increasing marginal costs. B. Operate under FDI. C. Operate under low transport costs. D. Operate under increasing returns to scale. Explain your answer and support it using a diagramConsider the following production chain for bread. Assume that a Farmer grows wheat, and sells this to a Miller for $1.00. The Miller mills flour, and sells this to a Baker for $1.50. The Baker bakes bread, and sells this to a Supermarket for $3.00 per loaf. The Supermarket sells a loaf to a customer for $4.25. What is value added in the Miller's industry?
- Give an example of a price at which this firm would want to produce and sell output in the short run, but not in the long run.At a university faculty meeting in 2012, a proposal was made to increase the housing benefits for new faculty to keep pace with the high cost of housing. What will likely be the long-run effect of this proposal?Economics Answer "False" or "True" each of the following. Justify by relying on graphical analysis whenever possible. 3.- If the marginal income is greater than the marginal cost, the competitive company will increase its profits by increasing its production (we assume increasing marginal costs). 4.- An industry in which the production process can be done with increasing economies of scale (for any level of production) cannot be one of perfect competition. answer both asap thnx
- Discuss how the production theory and price determinations help businesses achieve both their short-run and long-run goals.What are the short-run and long-run costs of the production of Walmart?Lisette owns a bakery. If she expands the size of her bakery but her average total cost of producing bread remains unchanged in the long run, what is Lisette experiencing?