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Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000): Revenues, costs 100 90 80 70 60 50 40 30 20 10 0 100 200 300 400 500 600 700 Quantity per period MC 800 AC AVC 900 >1000 N

Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000): Revenues, costs 100 90 80 70 60 50 40 30 20 10 0 100 200 300 400 500 600 700 Quantity per period MC 800 AC AVC 900 >1000 N

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 6E
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Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000): Revenues, costs 100 90 80 70 60 50 40 30 20 10 0 100 200 300 400 500 600 700 Quantity per period MC 800 AC AVC 900 1000
Transcribed Image Text:Graph below shows the cost curves for a perfectly competitive firm (its total fixed costs are $9,000): Revenues, costs 100 90 80 70 60 50 40 30 20 10 0 100 200 300 400 500 600 700 Quantity per period MC 800 AC AVC 900 1000
O 10 (1) Price ($) 75 55 25 100 S Yes 200 Yes No No 300 On the basis of above graph complete the below table. For columns 2, 3, 4, and 5 you need answer only yes or no. (2) 400 500 Is P > AC? 600 Quantity per period 700 (3) Can the firm make a profit? Yes Yes No v No 800 V Yes Yes ✓Yes No 900 1000 (4) Is P> AVC? Will the firm produce? Yes ✓Yes (5) v Yes No V O Search V V V (6) (7) What quantity I will it What is average profit at this produce? quantity ($) ? profit? What is its total 500 Prev 1 of 13 H *** Next > (8)
Transcribed Image Text:O 10 (1) Price ($) 75 55 25 100 S Yes 200 Yes No No 300 On the basis of above graph complete the below table. For columns 2, 3, 4, and 5 you need answer only yes or no. (2) 400 500 Is P > AC? 600 Quantity per period 700 (3) Can the firm make a profit? Yes Yes No v No 800 V Yes Yes ✓Yes No 900 1000 (4) Is P> AVC? Will the firm produce? Yes ✓Yes (5) v Yes No V O Search V V V (6) (7) What quantity I will it What is average profit at this produce? quantity ($) ? profit? What is its total 500 Prev 1 of 13 H *** Next > (8)
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