Neatly draw the Average Cost Family curves below. Label everything. Assume a purely competitive firm making an economic profit. Selling Price = $10.00 Average Total cost $7.75. Q* = 300 Be sure to label everything, but also find: Total Revenue Total Cost Profit per unit
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- Price (dollars per packet of chips) Quantity demanded (millions of packets of chips per year) Quantity supplied (millions of packets of chips per year) 4 135 26 5 104 53 6 81 81 7 68 98 8 53 110 9 39 121 C: Harry-Chips is a firm in the potato chips industry. Harry-Chips produces 10 million packets of chips per year at an average total cost (ATC) of $4. What is Harry-Chips short-run profit or loss per year? Explain your answer in detail. D: Given your answer in part d, would new firms enter or existing firms exit the market? What would be the long-run impact on Harry-Chips’ profit or loss? Explain in detail.Laura’s cleaning service is a profit-maximising, competitive firm. Laura cleans awhole house for $156. Her total cost each day is $1680, of which $480 is a fixed cost. She cleans 8 houses a day.(a)Should Laura shutdown her business in the short-run, assuming that she cannot recover her fixed cost?(b) Should she exit in the long-run?Quantity of Radios Total Variable Cost Total Cost 0 $25 1 $13 $38 2 $28 3 $70 4 $64 5 $110 6 $108 7 $133 8 $185 The fixed costs of production for this firm are: Group of answer choices $0 $25 $13 can’t be determined with information provided 2) Quantity of Radios Total Variable Cost Total Cost 0 $25 1 $13 $38 2 $28 3 $70 4 $64 5 $110 6 $108 7 $133 8 $185 The total variable cost of producing 5 radios is: Group of answer choices $190 $110 $90 $85 3) Quantity of Radios Total Variable Cost Total Cost 0 $25 1 $13 $38 2 $28 3 $70 4 $64 5 $110 6 $108 7 $133 8 $185 The total cost of producing 7 radios is: Group of answer choices $140 $153 $158 none of these is correct…
- 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?Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last year was $100,000, and his rent was $3,000 per month. He pays his one employee $2,000 per month, and the cost of ingredients and overhead averages $500 per month. Ralph could earn $35,000 per year as the manager of a competing pizza restaurant nearby. His total economic profit for the year was what?Dylan's house-cleaning enterprise is a competitive firm. Dylan cleans houses for 39 € cach. His total cost ach day is 380€, of which 30€ is a fixed cost. He cleans 10 houses a day. What can you say about Dvlan's short-run decision regarding shut down and his long-run decision regarding exit.
- Define the term Unit-Profit?Q1:(A) Assume the following cost data are for a purely competitive producer: total product average fixed cost Average variable cost Average total cost Marginal cost 0 $45 1 $60 $45 $105 $40 3 $20 $40 $60 $30 4 $15 $37.5 $52.5 $35 5 $12 $37 $49 $40 6 $10 $37.5 $47.5 $45 7 $8.57 $38.57 $47.14 $55 8 $7.50 $40.63 $48.13 $65 9 $6.67 $43.33 $50 $75 10 $6 $46.50 $52.5 At a product price $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 profits or loss will the firm realize per unit of output ? Use MR-MC approach also show economic profit graphically.Nabil cleaning service is a profit-maximizing, competitive firm. Nabil cleanswashroom for $25 each. His total cost each day is $260, of which $30 is a fixed cost.He deep cleans 10 toilets a day.a. What can you say about Nabil’s short-run decision regarding shutdown andb. What is his long-run decision regarding exit?Explain each decision with diagram.