Economics Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Do not provide Excel Screet shot rather use tool tableAnswer completely. 678FigureThe figure to the right shows the initialmarket supply (S₁) and marketdemand (D₁) curves for the oil industryalong with the industry's long-runsupply curve (S₁).Movement up along the long-runindustry supply curve is indicated bythe rightward shift in demand to D₂.Dollars per barrel360-340-320-300-280-260-240-220-200-180-160140-120-100-80-60-40-20-Print0.0S.D.Done0₂0.4 0.8 1.2 1.6 2.0 2,4Output (barrels per day in 10,000s)2.8QQ5-X1.5per KClick the following icon to view additional informationnecessary to complete the exericse.Suppose market demand for oil increases to D₂, as illustratedin the reference figure. In the graph for the representative firm,show the new long-run average cost curve.Using the three-point curved line drawing tool, on the figure tothe right, graph the new long-run average cost curve. Labelthis curve LRAC₂.Carefully follow the instructions above, and only draw therequired object.GIEDDollars per barrel360-340-320-300280-260-240-220-200-180-160-140-120-100-80-60-40-20LRAC!0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1 24 27Output (barrels per day in 100s)

Long-run average total cost (LRATC) refers to the average cost per unit of output in the long run,…

K Click the following icon to view additional information necessary to complete the exericse. Suppose market demand for oil increases to D₂, as illustrated in the reference figure. In the graph for the representative firm, show the new long-run average cost curve. Using the three-point curved line drawing tool, on the figure to the right, graph the new long-run average cost curve. Label this curve LRAC₂. Carefully follow the instructions above, and only draw the required object. CIS Dollars per barrel 360- 340- 320- 300- 280+ 260- 240- 220- 200- 180- 160- 140- 120- 100+ 80- 60- 40- 20- LRAC 0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1 24 27 Output (barrels per day in 100s)

K Click the following icon to view additional information necessary to complete the exericse. Suppose market demand for oil increases to D₂, as illustrated in the reference figure. In the graph for the representative firm, show the new long-run average cost curve. Using the three-point curved line drawing tool, on the figure to the right, graph the new long-run average cost curve. Label this curve LRAC₂. Carefully follow the instructions above, and only draw the required object. CIS Dollars per barrel 360- 340- 320- 300- 280+ 260- 240- 220- 200- 180- 160- 140- 120- 100+ 80- 60- 40- 20- LRAC 0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1 24 27 Output (barrels per day in 100s)

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
How does the average variable cost curve help a firm know whether it should shut down immediately?
What two lines on a cost curve diagram intersect at the zero-profit point?
Suppose a perfectly competitive firm is operating in short run. The information of MR, Q,ATC and AVC are 15 taka, 60 unit, 45taka and 35 taka respectively. Calculate firm’sprofit/loss and total fixed cost. From these calculations and based on all the giveninformation, can you conclude about the firm’s decision in short run? Explain your reasoningwith the help of a suitable diagram. Show all the relevant information in yourdiagram.[Q=profit maximizing output and MR=marginal revenue]
the table below shows the output cost and revenue situation of a firm. Study the table and asnwer the questions that fllows Q TVC TC MC P TR MR 0 0 150 0 200 0 - 1 110 C 110 175 175 175 2 170 320 G 150 I L 3 A D 46 135 405 105 4 250 E 34 120 J M 5 B 445 H 105 525 45 360 F 65 90 K N (a) what is the fixed cost of the firm? Explain your answer (b) determine the values from A-M by showing all workings employed (c) At what quantity and price is the firm in equilibrium position and in what market is the firm oeperating? explain your answer
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Assume the following cost data are for a purely competitive producer Total Product AFC AVC ATC MC 0 1 $60 $45 $105 $45 2 $30 $42.50 $72.50 $40 3 $20 $40 $60 $35 4 $15 $37.50 $52.50 $30 5 $12 $37 $49 $35 6 $10 $37.50 $47.50 $40 7 $8.57 $38.57 $47.14 $45 8 $7.50 $40.63 $48.13 $55 9 $6.67 $43.33 $50 $65 10 $6.00 $46.50 $52.50 $75 At a price product of $56, will this firm produce in the short run? Why or Why not? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Explain. What economic profit or loss will the firm realize per unit of output?
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