Use the table below listing Average Total Cost (ATC)d and Marginal Cost (MC) for a firm in perfect competition to answer the following questions. Quantity ATC MC 1 17.5 15 14.3 12 3 10 10 4 16 20 22 31 In each scenario determine if the firm is profitable, breaks even, or incurs a loss. 1. If market price is $8, the firm 2. If market price is $14, the firm 3. If market price is $10, the firm

Use the table below listing Average Total Cost (ATC)d and Marginal Cost (MC) for a firm in perfect competition to answer the following questions. Quantity ATC MC 1 17.5 15 14.3 12 3 10 10 4 16 20 22 31 In each scenario determine if the firm is profitable, breaks even, or incurs a loss. 1. If market price is $8, the firm 2. If market price is $14, the firm 3. If market price is $10, the firm

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 9SQP

See similar textbooks

Similar questions

10. Timmy's Trophies operates in a perfectly competitive market. If trophies sell for $20 each and average total cost per trophy is $15 at the profit-maximizing output level, then in the long run Group of answer choices more firms will enter the market. some firms will exit from the market. the equilibrium price per trophy will rise. average total costs will fall.
Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost AVC - Average Variable Cost Refer to the figure above. If this firm decides to operate and is producing the profit-maximizing quantity, then the firm's profit will be: $40 $0 - $40 $240
Quantity Fixed Cost Variable Cost Total Cost Marginal Cost 10 200 50 250 0 20 200 100 300 5 30 200 300 500 20 40 200 800 1000 X Based on the table above for a perfectly competitive firm: A) Find the marginal cost as X B) If the equilibrium price is $20, find the profit maximizing quantity. C) How much profit will the firm earn?
You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC = $8 Market price = $13 Quantity MC ($) 1 10 2 8 3 9 4 11 5 14 6 18 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much?
Suppose the competitive market price is $60, and a competitive firm’s total costs = q^2 - 6q + 990 and marginal cost = 2q - 6. a. Solve for the profit-maximizing (or loss minimizing) quantity (q*). b. What is the market equilibrium price? c. Should the competitive firm produce q*? Explain why using one of the four key questions and solutions. d. Does the competitive firm make a profit? Explain why using one of the four key questions and solutions. e. How much profit (or loss) does the competitive firm make?
The graph below shows a competitive firm's demand and cost curves. Assume that the firm produces at the profit-maximizing output level. What is the firm's profit? [Recall that in perfect competition a firm’s demand curve is a horizontal line drawn at the market price level and that P=MR=D.] Group of answer choices $144 $720 $576
Shazam, a maker of magic wands, is selling in a purely competitive market. Its output is 500 wands, which sell for $10 each. At this level of output, the marginal cost is $10 and the average variable cost is $12. Should the firm increase output, decrease output, or not produce? Explain why?