If a perfectly competitive firm is selling 1,910 units of its product at a price of $10 per unit and earning an economic profit of O, then the total cost (in $) is? The result should be an integer number, no decimals (e.g if the result is 3.67, write 4.) Your Answer:
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- The Emerald Company, a firm in the perfectly competitive custom jewelry industry, asks you for your expert economic opinion. They tell you the following: Total revenue is $110,000, Total fixed costs are $80,000 Total variable costs are $100,000 Marginal cost is $220/unit Quantity produced is 550 unit What is your advice based upon the information above? Keep operating and do not change the current production level. Keep operating and increase production Keep operating but decrease production Shut-down immediatelyShould a firm shut firm if its revenue is R = $1,500 per week and: a. Its variable cost is VC = $1,100 and its sunk fixed cost is F = $800? b. Its variable cost is VC = $1,600 and its fixed cost is F = $600? c. Its variable cost is VC = $1,100 and its fixed cost is F = $1000 ($800 of which is avoidable if it shuts down)?All firms in a perfectly competitive industry have a cost function given by: 10Q^2+200Q+2250. What is the profit maximizing quantity of each firm if the current market price is $500? What does each firms profit equal? Give typing answer with explanation and conclusion
- Q4) A perfectly competitive firm has the following total cost function: Total output Total Cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much will the firm produce if the price of the product on the market is Rs. 14 per unit? How will it change its output if the price rises to Rs.16 per unit?A firm in a perfectly competitive industry is maximizing its profits at 400 units of output. If the marginal revenue and marginal cost are each $35 and the firm's average total cost is $25, What is this firm's profit?The attached figure shows the short-run cost curves for a perfectly competitive firm. If the price of the product were $8, and the firm does not close, the firm's short-run output will be:a. 0 (zero)b. between 0 (zero) and 10c. 10 or mored. Cannot be determined unless more information is available.Please elaborate on your answer to each alternative, whether it is true, false or uncertain.
- Q4) A perfectly competitive firm has the following total cost function: Total output Total Cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much will the firm produce if the price of the production the market is Rs. 14 per unit? How will it change its output if price rises to Rs. 16 per unit?Explain in your own words why in the short run a firm may continue to produce even at a loss provided the price is more than the average variable cost. Also, provide an example of when a firm might face this decision.Suppose a firm operating in a perfectly competitive industry has costs in the short run given by: SRTC = 8 + ½q^2 and therefore MC = q. Derive expressions for fixed costs (FC), those that do not vary with output, variable costs (VC), those that do vary with output, average variable cost (AVC), and average total cost (ATC).
- A firm's LAC curve is U-shaped and has its minimum point at an output of 25000 units perweek. In the short-run the firm has a U-shaped SAC that coincides with the LAC at an output of30,000 units per week?.a. Is SAC rising, falling, or neither at an output of 30,000 units per week.Prove your answer.b. Is SMC greater than, equal to or less than LMC at an output of 29.999 units per week?. Proveyour answer.Suppose a firm operating in a perfectly competitive industry has costs in the short run given by SRTC = 8 + 1/2q^2. Derive expressions for fixed costs (FC), variable costs (VC), those that do not vary with output, average variable cost (AVC) and average total cost (ATC).Suppose you are the economic advisor of Jackie Brown Company, a perfectly competitivecompany that is suffering economic losses due to unforeseen continuous drop in the market price.Jackie Brown is a price taker; hence it cannot influence the market price, nor could it changeproduction technology in the short run. You are asked to decide whether the company should shutdown its operations or to continue to operate at a loss. Jackie Brown is selling 50 units of outputper day, at a price of $20 per unit. The cost of raw material, direct labor, energy, and othervariable inputs is about $24000 monthly. Unfortunately, an estimate of Jackie Brown fixed costs iscurrently unavailable. So, what is your decision?