MC АТС AVC $21.00 $20.00> $19.50 MR = $15.00 $12.50 - 30 40 50 Output (Q) The optimal output for the firm shown in the diagram above is: 40 30 zero (the firm should shutdown). 50
Q: If a firm shuts down temporarily, it will incur loss equal to
A: To find: If a firm shuts down temporarily, it will incur loss equal to
Q: Suppose an avocado farm has cost: C = 0.002q3 + 22q + 750 (where q is measured in bushels).…
A: Given an avocado farm: C = 0.002q3 + 22q + 750 .... (1) Marginal cost: MC=0.006q2+22 ... (1)…
Q: A firm was producing at profit maximizing output and decided to shut down. Which of the following is…
A: The profit of the profit maximizing firm is maximized at a point where marginal revenue is equal to…
Q: The figure below shows the demand (D, MR) and cost (MC, ATC) curves for the Hand Made Shirt Shop…
A: The fixed cost does not change with change in the level of output. The firm has to bear the fixed…
Q: A firm operates two plants. The total cost schedules for the respective plants are TC1 = 5*Q1 +…
A: Given: Total Cost of two plants are as follows: TC1=5Q1+0.1Q12TC2=2Q2+0.1Q22 Demand function:…
Q: Yann's bakery operates in a perfectly competitive market where the prevailing price for a baguette…
A: In a perfectly competitive market, the profit-maximizing quantity is at that at which price is equal…
Q: Darlene runs a pizza parlor in a medium-sized community where there are many such parlors. Assuming…
A: Fixed costs (FC) are costs incurred during production that are not dependent on the quantity of the…
Q: Refer to Figure 14-1. The firm should shut down if the market price is above $8. above $6.30 but…
A: The shutdown point defines a price level below which it becomes absolutely inefficient for a firm to…
Q: Which condition is correct for a firm wanting to maximize profit: a.MPK > MRPK b.MRP = MC c.MPL =…
A: Profit maximization refers to the level of output and price where a firm, industry or household…
Q: If a firm shuts down, it A) makes zero economic profit. B) incurs an economic loss equal to its…
A: Total cost is the sum of variable cost and the fixed cost. Fixed cost is the cost that remains same…
Q: Suppose that a firm in a competitive market has the following cost curves: 20 ATC 18 16 AVC 14 13 12…
A: The firm should shutdown if the market price is- less than $6.
Q: Christine is the general manager of a local automated car wash. The market she operates in is…
A: In perfect competition, at equilibrium, price is equal to marginal cost which again is equal to…
Q: $12.5 MC АТС $10.0 P-MR 8.0 $7.5 $5.0 $2.5 $0.0 0 10 20 30 40 50 60 70 80 90 100110120 130 Quantity…
A: Here, the given graph shows the cost and revenue curves of a firm that is operated in the perfectly…
Q: Aphria Corporation, a cannabis producer, is producing 30 units of output. Aphria Corporation is…
A: The markets in an economy are considered to be beneficial for the growth, and development of the…
Q: Find short run industry supply for 60 firms, in perfect competition. Each with TC = 5q + 15q^2 +20…
A: Each firm sells at a point where price is equal to marginal cost Equilibrium in the market occurs…
Q: Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs…
A: Accounting profit likewise alluded to as accounting profit or monetary profit is overall gain…
Q: A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost…
A: Profit maximization is the short run or long run process by which a firm may determine the price,…
Q: MC is...............and the MC cuts the LRAC at q=..........
A: MC is the marginal cost. MC = ∂TC/∂q LRAC is the long run average cost. LRAC = Total Cost (TC) * q…
Q: The shape of the firms marginal revenue curve depends ultimately on whether the firm is
A: Marginal Revenue refers to the additional revenue generated by selling one additional unit of…
Q: minimizes the firm’s AVC.
A: Average variable cost (AVC) = Variable cost (VC)/output (Q)
Q: Descartes Corporation closes down In the short run and thus produces no output. Under these…
A: Long run: - it is the time period in which all factors of production become variable in other words…
Q: Using the above graph, The minimum level of output this firm would produce is 12 units. The…
A: "Since you have posted a question with multiple subparts.We will solve first three subparts for…
Q: Given the cost data in the table below, if the market price is $138, then the firm's profit…
A: Profit maximization is the ultimate goal of every firm operating in the market.
Q: Each of 1,000 identical firms in the competitive peanut butter industry has a short- run marginal…
A: Equilibrium in the market occurs where demand and supply are equal
Q: What is the profit maximizing level of output for the firm? How much profit is this firm earning?…
A: Profit maximizing level of output is achieved where price and quantity are equal i.e., in…
Q: Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a…
A:
Q: The wheat market is perfectly competitive, and the market supply and demand curves are given by the…
A: Equilibrium price and quantity is those quantity and price where market demand and supply is equal…
Q: Graph the AT C, AV C, MC, and MR curves in a single graph, and indicate the profit maximizing level…
A:
Q: Suppose a competitive firm has the following cost: output(units): 10 11 12 13 14 15…
A: The table showing output and cost is as follows:
Q: OThe firm is making a profit. OThe firm is making a loss, but should still remain operational. The…
A: there are many cost MC , AVC , AC so when Ac is less than P firm face profit ,so we can analyses the…
Q: A firm produces 20 units of output at a market price of $5, a marginal cost of $5, and an average…
A: Economic profit refer to the difference between firm's total revenue earned and total cost incurred…
Q: Determine the best level of output for a perfectly competitive firm that sells its product at P = $4…
A: The best level of output is the one where the pure competitive company extracts the highest amount…
Q: Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: This is the case of a firm when choosing Output in the Short Run. Refer to the Figure below,…
A: In Short-run, the profit maximization condition in perfect competitive market: MR=MC The market…
Q: The demand curve of a firm is p=1200–21q and its total cost is (q) = 2q³ – 66q² +600q+1000 where q…
A: An administrator boosts benefit when the worth of the last unit of item (minor income) rises to the…
Q: Lily's bakery operates in a perfectly competitive market where the prevailing price for a pumpkin…
A: Perfect competition is a market arrangement in which all businesses or enterprises offer the same…
Q: Based on the information in the table below, determine what quantity this firm should produce to…
A: Given, Quantity Marginal Cost Average Total Cost P=Marginal Revenue Total Cost 0 $…
Q: Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Consider a competitive industry. Every firm in this industry has a total cost function C (y) = y² +…
A: C(y) = y2 + 1 AC =y2+1y =y+1yMinimize avarage cost∂AC∂y=1-1y2=01y2=1y2=1y=1Hence, each firm…
Q: MC P. ATC P, AVC P2 P, 18. Refer to the above diagram for a purely competitive producer. The lowest…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Given the cost data in the table below, the firm will shut down and produce zero output if the…
A: The firm incurs loss if total revenue earned is less than total cost. It implies that firm is not…
Q: Consider a profit-maximizing firm in a competitive industry. For each of the following situations,…
A: In a competitive industry, the profit of a firm gets maximized at the point where marginal revenue…
Q: If a firm sells its output at a price greater than ATC, it will earn economic profit. Is this…
A: A firm produces at a point where the marginal revenues are equal to the marginal costs.
Q: In the above figure, if the firm is facing demand curve d 2, then to maximize profits it will…
A: 29. The profit maximizing firm in the short run will produce at point where MR or price is equal to…
Q: Figure 3-1 Price (dollars per unit) 22 25 24 18 14 13 884 16 25 MC AVC AC MR
A: The given figure reflects that the market is competitive. Demand curve is constant so it is equal to…
Q: A perfecty competitive fim is producing at an output level of 1200 where marginal revenue is $15,…
A: Profits refer to the excess of earning or revenues of a firm over their spending or cost of…
Q: Price and costs (dollars) 50 40 30 20 10 0 10 20 MC always. ATC MR 30 40 Quantity (per day) The…
A: The term "perfect competition" refers to an ideal market arrangement. In a free-market economy,…
Q: is equal to TC - TR. If the firm shuts down instead, its loss is equal to FC. Given this, show that…
A: Answer : Total cost (TC) = Total variable cost (TVC) + FC When firm has a loss, Loss = TC - TR = TVC…
Step by step
Solved in 2 steps
- Central Grocery in New Orleans is famous for its muffaletta, a large round sandwich filled with deli meats and topped with a tangy olive salad. Suppose the following table represents cost and revenue data for Central Grocery. Muffaletta Sold per Day Price (P) Total Revenue (TR) Marginal Revenue (MR) Total Cost (TC) Marginal Cost (MC) Average Total Cost (ATC) Profit 0 $15 $12 1 14 18 2 13 20 3 12 21 4 11 23 5 10 26 6 9 30 7 8 35 8 7 42 9 6 52 10 5 78 Fill in the table What are the profit-maximizing price and quantity, and what…A company produces very unusual CD's for which the variable cost is $ 15 per CD and the fixed costs are $ 50000. They will sell the CD's for $ 79 each. Let a be the number of CD's produced. Write the total cost C as a function of the number of CD's produced. C =$ Write the total revenue R as a function of the number of CD's produced. R=$ Write the total profit P as a function of the number of CD's produced. P=$ Find the number of CD's which must be produced to break even. The number of CD's which must be produced to break even is Question Help: Video Submit QuestionUse the information in the graph to the right to find the values for the following at an output level of 35. 100 The marginal cost is S (Enter a numenc response using an integer.) MC ATC AVC 54 38 -- 17 35 Post
- The following are the cost information of a typical ice tea company in an industry with 100 firms. Output (ice tea per hour) Marginal Cost ($ per ice tea) Average Variable Cost ($ per ice tea) Average Total Cost ($ per ice tea) 3 2.50 4.00 7.33 4 2.20 3.53 6.03 5 1.90 3.24 5.24 6 2.00 3.00 4.67 7 2.91 2.91 4.34 8 4.25 3.00 4.25 9 8.00 3.33 4.44 a) At the price of $2.20 per ice tea, what is the firm’s profit maximizing level of output? Why is this the profit maximizing level of output for the firm? b) If the market price is $8 per ice tea and the firm is producing six (6) ice tea per hour, is the firm maximizing profit or not? Why or why not? If the firm is not maximizing profit, what should it do to maximize profit? c) At the price of $8 per ice tea, what is the firm’s profit-maximizing level of output? Why is this the profit maximizing level of output? What is the firm’s economic profit at…The following are the cost information of a typical ice tea company in an industry with 100 firms. Output (ice tea per hour) Marginal Cost ($ per ice tea) Average Variable Cost ($ per ice tea) Average Total Cost ($ per ice tea) 3 2.50 4.00 7.33 4 2.20 3.53 6.03 5 1.90 3.24 5.24 6 2.00 3.00 4.67 7 2.91 2.91 4.34 8 4.25 3.00 4.25 9 8.00 3.33 4.44 d) Is the price $8 a short-run or long-run equilibrium price for the industry? If the price is not a long run equilibrium price, what adjustments are likely to happen in the market for it to reach long run equilibrium. e) What price must prevail in the market for a typical firm to operate in the short run? At this price, how many ice tea will be supplied by all firms in the market?Use the following table and use your previous calculations: find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm. Total Output Total Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 $280 a. MC = ATC between 30 and 40 Quantity ATC at minimum between 20 and 40 Quantity b. MC = ATC at 30 Quantity ATC at minimum between 20 and 40 Quantity c. MC = ATC at 40 Quantity ATC at minimum between 20 and 40 Quantity d. MC = ATC between 30 and 40 Quantity ATC at minimum between30 and 40 Quantity e. MC = ATC between 20 and 40 Quantity ATC at minimum between 20 and 40 Quantity
- Profit maximizing output is at: * 100 320 440Billy’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. The price for each of the 275 units sold was $95. What is the Total profit for Billy’s Bean Bag Emporium? Include in your answer your calculationPage of 2 ZO The marginal cost for a manufacturer of cherries is MC(q) = 0.06q° + 0.5g + 50 per necaton-cherry. Find the change in total cost for the manufacturer when production is increased from 40 hecaton-cherries to 50 hecaton-cherries.
- The table gives some of the costs of the Delicious Pie Company. The marginal cost per pie of increasing the output of pies from 100 to 200 is Total variable cost (dollars) Output (pies) 0 100 200 300 400 $8.00 $600 $6.00 $5.00 0 400 1,000 1,800 2,800 Total cost (dollars) 300 700 1300 2100 3100 ?Given Cost and Price (demand) functions C(q) = 110q + 45000 and p(q) = - 2.8q + 800, what profit can be earned if the price is set to be $550 per item? U The profit is $ 1,?9 (Round to the nearest cent.) A company produces a special new type of TV. The company has fixed costs of $499,000, and it costs STT00 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it will be able to sell 850 TVs. If the company wants to sell 900 TVs, however, it must lower the price to $2000. Assumo a linear demand. What is the marginal profit if 200 TVs are produced It is $ 0 per item. (Round answer to nearest dollar.)10 ATC ATC2 ATC3 ATC, 2 2 4 6 8 10 Quantity (thousands of copies per day) A copy shop is choosing between four different operational sizes (ie, plant size). The average total cost curve for each option is shown in the graph. If the market demand for copies is 12,000 copies per day, how many copy shops would you expect to see in this market? The answer depends on the price of a copy, which is unknown. O 1 (because the copy shop will become a monopoly with a large quantity demanded) O (because the copy shop can't produce 12,000 copies efficiently and will shutdown) 3 (with each shop supplying 4000 copies per day) 8, 6 Average cost (cents per copy)