$ 17.50 per unit p. Does price equal or exceed average variable cost for the first 100 units? Yes What is the average variable cost for the first 100 units? $ 2500.00| O per unit

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 15CQ
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Please help with the second part of b in IMAGE ECO PT1

Please help with b in IMAGE ECO PT2

A purely competitive firm finds that the market price for its product is $25. It has a fixed cost of $100 and a variable cost of $17.50 per
unit for the first 50 units and then $32.50 per unit for all successive units.
Instructions: Enter your answers rounded to two decimal places.
a. Does price equal or exceed average variable cost for the first 50 units?
Yes
What is the average variable cost for the first 50 units?
$ 17.50
per unit
b. Does price equal or exceed average variable cost for the first 100 units?
Yes
What is the average variable cost for the first 100 units?
$ 2500.00
* per unit
Transcribed Image Text:A purely competitive firm finds that the market price for its product is $25. It has a fixed cost of $100 and a variable cost of $17.50 per unit for the first 50 units and then $32.50 per unit for all successive units. Instructions: Enter your answers rounded to two decimal places. a. Does price equal or exceed average variable cost for the first 50 units? Yes What is the average variable cost for the first 50 units? $ 17.50 per unit b. Does price equal or exceed average variable cost for the first 100 units? Yes What is the average variable cost for the first 100 units? $ 2500.00 * per unit
The table below shows the daily costs of Corny's Corn Cobs. Corny's sells corn by the dozen in a purely competitive market. The
market price is $6.50 for a dozen ears of corn.
Corny's Corn Cobs
Quantity
AVC
ATC
MC
(Dozens of Ears)
($)
($)
($)
8
5.00
12.50
2.50
11
4.50
10.00
3.30
13
4.60
9.20
5.00
15
4.70
8.80
5.70
16
4.90
8.60
6.50
18
5.10
8.50
7.40
19
5.30
8.50
8.00
20
5.50
8.50
9.50
Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places. Enter a loss as a
negative (-) number.
a. In the short run, if Corny's wants to maximize profits, how much corn should it produce?
16 dozen ears of corn per day
b. Assuming that Corny's produces in the short run, what will Corny's profit or loss be per day?
33.60 per day
Transcribed Image Text:The table below shows the daily costs of Corny's Corn Cobs. Corny's sells corn by the dozen in a purely competitive market. The market price is $6.50 for a dozen ears of corn. Corny's Corn Cobs Quantity AVC ATC MC (Dozens of Ears) ($) ($) ($) 8 5.00 12.50 2.50 11 4.50 10.00 3.30 13 4.60 9.20 5.00 15 4.70 8.80 5.70 16 4.90 8.60 6.50 18 5.10 8.50 7.40 19 5.30 8.50 8.00 20 5.50 8.50 9.50 Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places. Enter a loss as a negative (-) number. a. In the short run, if Corny's wants to maximize profits, how much corn should it produce? 16 dozen ears of corn per day b. Assuming that Corny's produces in the short run, what will Corny's profit or loss be per day? 33.60 per day
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