Given the operations of a peanut firm under perfect competition and assuming that the price of peanut butter = 35 and fixed costs = 50. What is the marginal cost at the 5th unit and outpu

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A: Shut down means the company closes all its operations because it cannot gain any benefit from it.

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A: Total Revenue=$27*10=$270   Total Explicit Cost=Total Cost-Fixed Costs Total Explicit Cost=$280-$30…

Q: Given the operations of a peanut firm under perfect competition and assuming that the price of…

A: The price of the peanut butter = 35 The fixed cost = 50 Quantity = 5

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A: The perfect competition refers to a type of market structure which is characterized by a large…

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A: In perfect competition there are many firms producing identical goods.

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A: To find : What will be average fixed cost.

Q: The diagram below, shows the cost structure for a firm in perfect competition. Assume that the…

A: Perfect Competition- It is a market in which there are large number of buyers and sellers and they…

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A: 1.   Total Cost = Fixed Cost + Variable Cost   Average Total Cost = Total Cost Quantity   Average…

Q: Jeannette has a wheat farm, and the wheat market is perfectly competitive. The market price of a…

A: Divide the fixed costs of production by the price per unit minus the variable costs of production to…

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A: Introduction: Short-run is a term that asserts that at least one input is fixed while others are…

Q: In the short run, if a marginal cost of a firm in a competitive industry is increasing while its…

A:

Q: For each price in the following table, calculate the firm's optimal quantity of units to produce,…

A: When P is $25, Quantity is taken from minimum AVC which is 30,000When P is $70, Quantity is taken…

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Q: Given the operations of a peanut firm under perfect competition and assuming that the price of…

A: The total revenue of a firm is given by, TR = Price x Output

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A: The following problem has been solved as follows:

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A: find below the answer.

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Q: 'In the short run, the firm should shut down only if the price is less than average variable cost''…

A: This statement is absolutely correct.

Q: Given the following short run production cost schedule:   Short Run Total Cost Function…

A: Average cost (AC) =Total cost (TC)Quantity(Q)Marginal cost (MC) =TCn-TCn-1

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A: In a competitive firm due to free entry and exit the firm earns normal profit in the long run.

Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?