Given the information in the table is this a competitive or non-competitive firm? In the short run, how many units should the firm produce to maximize its profit? Output Total Revenue Marginal Cost $0 $6 $1 2. $12 $2 $18 $3 4. $24 $5 $30 $7 O A. non-competitive; 3 O B. non-competitive; 0 OC. competitive; 4 O D. competitive; 5 O E. competitive; 0 O F. non-competitive; 5 O G. there is not enough information to determine whether it is a competitive or non-competitive firm; 4
Q: 20 MC ATC AVC 16 12 8. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) In the above figure, at…
A: A perfectly competitive market is one that has a large number of buyers and sellers, selling…
Q: QUESTION 2 In the short run, a perfectly compeutive firm's produce at its profit maximizing level of…
A: Market structure is a study of competitiveness of the firms or industry. Perfect competition is one…
Q: In the short run, a perfectly competitive firm: (1) produces where the difference between the market…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Given a perfectly competitive firm, which of the following statements are true? Select one or more:…
A: In perfect competition, there exists a large number of firms selling identical goods. There is free…
Q: Σ * 00 B. # Chapter 11 6 Saved Help A firm in a purely competitive industry is currently producing…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Table Cost.EX2.2: Data for a Competitive Firm Marginal Marginal Output Cost Revenue (Q) (MC) (MR) 10…
A: A firm will maximize profits when Marginal Revenue is equal to the Marginal Cost. Requirement 1: If…
Q: QUESTION 3 What is the optimal amount of output for Firm 1? O a. y" = 1.14 O b. None of the answers…
A: Answer: Correct option: option (a) Calculation: To solve for optimum level of output, the…
Q: Q (in units). AFC (in dollars) AVC (in dollars) MC (in dollars) C 2.5 18 10 4 1.25 14 14 0.83 18 42…
A: In a perfect-completion there are large numbers of buyers(B) and sellers(S) dealing in…
Q: Suppose your firm operates in a perfectly competitive market and has a U-shaped average variable…
A: In the perfectly competitive market, it can be seen that marginal revenue and average revenue are…
Q: In the long run, perfectly competitive firms will exit the market if the price is O A. equal to…
A: In a perfectly competitive market, in the long run, price is equal to the minimum of the average…
Q: You have started your own bakery and you are the sole employee. Your total revenue was $100,000.…
A: 1. Given, Total revenue = $100,000 Explicit cost = $60,000 Implicit cost = $80,000 Since the cost…
Q: A competitive firm operating in the short run is producing at the output level at which ATC at a…
A: In short run the profit maximization level of output is produced at point where MR or Price = MC.…
Q: A profit-maximising firm considers its marginal revenue (MR) and marginal cost (MC) functions. Which…
A: The output level at which MC equals MR is known as maximum profit. The firm will enhance its profit…
Q: 1) For the following firm in a competitive market, COSTS Quantity Produced Total Cost Marginal Cost…
A: In a perfectly competitive market there are large number of firms selling identical products.
Q: Which one of the following is true for a firm under perfect competition when all firms face…
A: A firm in a perfectly competitive market wants to maximize profits just like any other firm. The…
Q: Firm B operates in a perfectly competitive market. What is the profit maximizing price? O a) $11 O…
A: The structure of a market where there are a large number of sellers that sell homogenous products in…
Q: Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm…
A: Consider the following figure:
Q: Consider the following costs for a typical perfectly competitive firm with no fixed costs (average…
A: In a market, there is different Profit maximizing constraint in the short-run and in the long-run.
Q: Conceptually, in the long run, which of the following statements is true about profit-maximizing…
A: In perfectly competitive market there are many firms and many consumers. The price is market…
Q: Suppose the market for apples is perfectly competitive. The short-run average total cost and…
A: Here, marginal cost curve and average total cost curve of an apple grower is given.
Q: 7. For a perfectly competitive firm, if total revenue is less than total cost but greater than total…
A: The total revenue is a product of quantity and average revenue (Price). So the average revenue or…
Q: Table: Total Cost for a Perfectly Competitive Firm Quantity 3 4 17 8. 10 Total Cost ($) 10 16 20 22…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs. The…
Q: 3. Suppose the doll company American Girl has an inverse demand curve of P = 150 - 0.25Q, where Q…
A: Answer;
Q: Resource allocative efficiency exists for a perfectly competitive firm because a. price equals…
A: Allocative efficiency refers to the situation where all goods and services are optimally distributed…
Q: QUESTION 15 Consider a firm operating in a competitive market. The firm is producing 50 units of…
A: Q15) "Economic profits are computed by deducting total cost from total revenue."
Q: Consider the following data facing a perfectly competitive firm: price = $20, quantity of output…
A: Answer: option (d) Explanation: Given: Price=$29Quantity produced=600 unitsAverage total…
Q: QUESTION 7 Given the accompanying table, what is the short-run profit-maximizing level of output for…
A: Profit = TR - TC Profit will be maximum at a point where the difference between TR and TC is…
Q: Should a firm shut down if its weekly revenue is $1,000, its variable cost is $900, and its fixed…
A: A shutdown point is a point where the marginal revenue of the firm becomes equal to the variable…
Q: rutabagas) (dollars) (dollars 12 1 10 22 2 20 28 3 30 30 4 40 31 5 50 34 60 45 7 70 59 8 80 80 The…
A: Profit is the difference between the total revenue and total cost. i.e. Profit = Total Revenue -…
Q: A firm has fixed costs of $60 and variable costs as indicated in the accompanying table. Complete…
A: Before any change in the TFC and TVC, the TFC = $60 and TVC is given as table. So the complete table…
Q: Consider the following costs of a typical firm in a purely competitive industry. The firm has no…
A: In a perfect competition market, a firm cannot enjoy the same profit level in the short-run and…
Q: TC 1 $27 $10 2 24 17 32 4 18 47 5 15 67 long-run equilibrium and price equals average total cost.…
A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…
Q: If the firm is producing at an output level where marginal revenue exceeds marginal cost, then the…
A: For a firm, output is maximized at the point where the two conditions are satisfied: Marginal…
Q: Under perfectly competitive conditions, if a good sells at $100 for a firm whose total costs are…
A: Total costs refers to the total amount the firms have to spend to produce given quantity of goods…
Q: MC ATC AVC MR2 MR, 3D 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total revenue if…
A: In a market, a firm's cost and revenue curves help to understand the profit and cost analysis…
Q: Assume that this is the cost function for a perfectly competitive firm: Cost (q) = 5 q² + 20 For…
A: Answer: The following formulas will be used: AVC=VCqAFC=FCqATC=TCq (TC=total…
Q: For a perfectly competitive industry, diminishing marginal returns O a. Diminishing marginal returns…
A: * ANSWER :- * The OPTION B ( Occurred in the both short run and in the long run) is correct answer.…
Q: The figure above shows the marginal revenue and long-run cost curves for a perfectly competitive…
A: A perfectly competitive firm operates in a market with a large number of identical firms, each…
Q: Consider the following costs of a typical firm in a purely competitive industry. The firm has no…
A: a) The price associated with the long-run equilibrium is when ATC is at its minimum point. Given the…
Q: In a perfectly competitive market, there are firms, all selling products. Select one: O a several…
A: Answer to the question is as follows:
Q: (Table: Total Cost and Output for All-Natural Frozen Yogurt) Use Table: Total Cost and Output for…
A: In perfectly competitive market, there are large number of firms selling identical goods.
Q: Which of the following is always true for the profit-maximizing firm in a perfectly competitive…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a…
A: Hi! thank you for the question but as per the guidelines, we answer only 3 sub-parts at one time.…
Q: Which of the following statements in the full competitive market is correct? Choose an answer O 1.…
A: In a competitive market, firms face a very high degree of competition that affects their gain from…
Q: QUESTION 3 A firm in a perfectly competitive industry will maximize profits by shutting down if the…
A: A perfectly competitive market is a market structure where each and every firm which are huge in…
Q: 5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm…
A: The above mentioned figure is of monopoly, i.e., the market structure that has a single seller and a…
Q: When would a perfectly competitive industry have a long-run supply curve that slopes downwards? O a)…
A: Perfect competition market is market where large number of buyer and seller sell similar products…
Q: If P = MC and MC <ATC, then a perfectly competitive firm will earn profits. a. negative O b.…
A: Inna market, the relationship between MC and ATC is used to determine the optimal output level so…
Q: Output 1 2 3 4 7 8 Total Cost 12 20 26 32 40 52 68 93 122 LO
A: In a perfectly competitive market, there are many firms producing identical goods. Firms do not have…
Q: a Competitive Firm Marginal Marginal Output Cost Revenue (Q) (MC) (MR) 10 $3.00 $4.00 11 $3.50 $4.00…
A: Marginal cost is the additional cost incurred with additional unit sold. Marginal revenue is the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- A perfect competitive firm estimates her cost function as given below: C = 100 + 5Q^2a. What is the firm’s fixed and marginal cost?b. If all other firms in the market sell the product at a price ¢20. How much should thisfirm charge for the product?c. What is the optimal level of output to maximize profits? please here below are the sub part that was unsolved d. How much profit will be earned?e. In the long run should this firm continue to produce or shut down? Why?Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?A perfect competitive firm estimates her cost function as given below: C = 100 + 5Q^2a. What is the firm’s fixed and marginal cost?b. If all other firms in the market sell the product at a price ¢20. How much should thisfirm charge for the product?c. What is the optimal level of output to maximize profits?d. How much profit will be earned?e. In the long run should this firm continue to produce or shut down? Why?
- A purely competitive firm finds that the market price for its product is $20. It has a fixed cost of $100 and a variable cost of $10 per unit for the first 50 units and then $25 per unit for all successive units. Does price exceed average variable cost for the first 50 units? What about for the first 100 units? What is the marginal cost per unit for the first 50 units? What about for units 51 and higher? For each of the first 50 units, does MR exceed MC? What about for units 51 and higher? What output level will yield the largest possible profit for this purely competitive firm?12. If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true thata. marginal revenue exceeds marginal cost.b. marginal cost exceeds marginal revenue.c. total cost exceeds total revenue.d. None of the above is correct.Quantity Price Total Fixed Costs Variale Cost Total Costs Average Variable Costs Average Total Cost Marginal Cost Total Revenue Marginal Revenue 0 35 25 0 1 35 25 20 2 35 25 25 3 35 25 35 4 35 25 52 5 35 25 80 If this firm produces a quantity of zero units, what is the total profits? What is the firm's marginal cost at a production level of two units? What is the average variable cost at a production level of five units? This firm becomes profitable producing at a quantity of ___ units. The average total cost is smallest at which level of production? At what quantity should this firm produce to maximize their profits based on your calculations? The total costs to produce four units is __________ while the average total cost to produce four units is _________.
- Assume that a firm in a perfectly competitive industry has the following total cost schedule:OUTPUT (UNITS) TOTAL COST ($) 10 110 15 150 20 180 25 225 30 300 35 385 40 480a. Calculate a marginal cost and an average cost schedule for the firm. b. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What are total profits? c. Is the industry in long-run equilibrium at this price?Question 3 The current market price in a competitive industry is $15. Every firm in the industry operates a technology that implies costs described by the function C = 12.5 + 0.3Q2. In the future, the technology is expected to change, and the new cost function will then be C = 10 + 0.2Q2. How much profit is the typical firm making today and in the long run? O. Profit is zero both today and in the long run. O. Profit is 125 both today and in the long run. O. Profit is 175 today and zero in the long run. O. Profit is 250 today and 125 in the long run.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.
- Given the following profit-loss schedule in the short run, how many units should a firm produce? Quantity Marginal Revenue Total Cost Marginal Cost Average Total Cost 0 2 15 - - 1 2 19.75 4.75 19.75 2 2 23.5 3.75 11.75 3 2 26.5 3 8.83 4 2 29 2.5 7.25 5 2 31 2 6.20 6 2 32.5 1.5 5.42 7 2 33.75 1.25 4.82 8 2 35.25 1.5 4.41 9 2 37.25 2 4.14 10 2 40 2.75 4.00 11 2 43.25 3.25 3.93Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacityis 1000 units per year. Your marginal cost is $10 per chip up to capacity. You have a fixed cost of $10,000 ifproduction is positive and $0 if you shut down. What are your profit-maximizing levels of production andprofit if the market price is ( a ) $5 per chip, ( b ) $15 per chip, and ( c ) $25 per chip? For case ( b ), explainwhy production is positive even though profits are negative?(a) How much will the firm produce in order to maximise profits at a price of £8 per unit and What will be its average cost of production at this output? ..................................................... (b) How much (supernormal) profit will it make and How much will the firm produce in order to maximise profits at a price of £5 per unit? . (c) Below what price would the firm shut down in the short run and Below what price would the firm shut down in the long run?