Q: Firm Z's marginal cost curve is: MC(q) = 2q + 3. On a neatly labeled graph, plot ATC(q), AVC(q),…
A:
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A: Yes, in the short run, it may be better to run the firm even if it is losing money.
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A: Below is the complete table: Formula used: TR = P × QMR = TRn-TRn-1MC = TCn-TCn-1 Profit = TR - TC
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A: Given, Total number of firms in the industry : 100 Fixed costs = $8 Equilibrium is at $15
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A: Break-even point is the point at which total revenue equals total costs or expenses. Here, we…
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A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Economic profit is a ) P(Q ‐ ATC) b ) PQ/ATC. c ) (P + ATC)Q d ) (P ‐ ATC)Q
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A: The correct solution is option e.
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A: Answer: Correct option: C (economies, then diseconomies, of scale) Explanation: Initially, the…
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A: Under perfect competition profit maximization occurs when Price = Marginal cost
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A: Given, TC = 1000 + 10Q2MC = dTCdQ=20Q Price, P = 300
Q: The following diagram shows cost curves for a perfectly competitive firm. %24 SMC 2.60 ATC AVC 1.60…
A: Here, marginal cost, Average variable cost and average total cost curves are given.
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A: Fixed monthly cost = $50000 Monthly variable cost = $100000 MC= $5 Monthly production = 100000 units
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A: A car wash service 'Clean and Shine' is a small business operating in the short run in a perfectly…
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A: The profit-maximizing choice for a competitive firm would tend to occur at the level of output where…
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A: Although shutting down can lower variable expenses to zero, the firm has already committed to pay…
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A: The correct answer is given in the second step.
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Q: If the price that a firm with no market power receives is $10, its minimum AVC is $8 and its minimum…
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Q: If the market price of a product is $10 that lie between the minimum average variable cost $8 (AVC)…
A: Given the market price = $10 Average variable cost = $8 Average total cost = $15
Q: Suppose a firm operating in a perfectly competitive industry has costs in the short run given by:…
A: SRTC = 8 +0.5q2 and MC = q TC = FC + VC Here from the total cost we can separate fixed cost and…
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A: Fixed costs refer to that cost that firm has to incure irrespective of production. This means fixed…
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- The diagram below, shows the cost structure for a firm in perfect competition. Assume that the market price is £12. The short-run output of the firm is ______ and the profit is ______. a. 30; -60 b. 36; 0 c. 54; 0 d. 54; 324 e. 18, -72 f. All then other answers are wrongWhich of the FF. shows the connection between the short run and the long run equilibrium? A. positive economic profits in the short run attracts other firms to enter the industry B. negative economic profits in the short run forces the losing firms to exit from the industry C. the entry and exit will stop once the economic profits become zero, thus, attaining a long run equiilibrium D. all are correct E. none is correctQ35 In the long run, it is not possible for a perfectly competitive firm to... a. Alter its plant size. b. Adjust its output. c. Adopt new technology. d. Set the product price. e. Replace its antiquated equipment.
- Suppose a firm in a perfectly competitive industry is currently producing output at its profit-maximizing quantity. If the firm's marginal cost is less than its average total cost, MC < ATC, the firm will earn ________ profits. a.negative b.positive c.zero d.break-evenQuestion 12 (i) Monica can go to work today and earn $500. However, she is also thinking about studying for the English test. If she studies for the English test she will not be able to go to work. What is Monica’s opportunity cost of studying for the English test? A: $0 B: $500 C: $500 minus the benefit from studying for the test D: The benefit of studying for the test minus $500 (ii) Which of the following is(are) considered as sunk cost for a competitive firm in the short-run? Variable cost Fixed cost A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2in the long-run, firms that operate in perfectly competitive markets should expect to earn exonomic profits a. greater than $0 b. equal to $0 ( no economic profits) c.less than $0
- In a perfectly competitive resource market the Marginal Revenue Product Curve is A. HORIZONTAL (WRONG) B. VERTICAL C. DOWNWARD-SLOPING D. UPWARD-SLOPINGA perfectly competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q2. What is the lowest price at which this firm can break even?Decide whether a firm making short-run losses should continue to operate or shut down its operations.
- Lentz's Incorporated sells paper in a perfectly competitive market at a price of $2 per ream. At the profit-maximizing (cost-minimizing) level of output, average total cost is $2.50 per ream and average variable cost is $1.95 per ream. Should the firm continue to operate in the short run?A firm will shut down in the short run if Question 3 options: P < AVC TR < TC P = MC P < ATC TR= TCIf it is possible for a perfectly competitive firm to do better financially by producing rather than shutting down, then it should produce the amount of output at which: a. MR < MC. b. MR = MC. c. MR > MC. d. none of the above.
