Question 5: Perfect CompetitionUse the cost schedule below to answer the following questions about a price-taking firm whoproduces discrete units (there cannot be a half-computer in this world). ATC is averagetotal cost, AVC is average variable cost and AFC is average fixed cost.Computers per DayFixed CostVariable CostTotal CostMarginal CostАТСAVCAFCPrice$30$0$351$30$20$30$303$30$404$30$60$30$906.$30$1307$30$1808$30$240$30$31010$30$3901. Fill out the schedule above.2. Given the price information you've received, how many computers/day will the firmproduce? What will be the economic profit (or loss) this firm receives?3. If the firm is making a positive profit, do you expect it to persist in the long run? Why?

1) Total Cost = Total Fixed Cost + Total Variable CostMarginal Cost = (Total Cost)n - (Total…

Question 5: Perfect Competition Use the cost schedule below to answer the following questions about a price-taking firm who produces discrete units (there cannot be a half-computer in this world). ATC is average total cost, AVC is average variable cost and AFC is average fixed cost. Computers per Day Fixed Cost Variable Cost Total Cost Marginal Cost ATC AVC AFC Price $30 $0 $35 1 $30 $20 2 $30 $30 3 $30 $40 4 $30 $60 $30 $90 $30 $130 $30 $180 8 $30 $240 $30 $310 10 $30 $390 1. Fill out the schedule above. 2. Given the price information you've received, how many computers/day will the firm produce? What will be the economic profit (or loss) this firm receives? 3. If the firm is making a positive profit, do you expect it to persist in the long run? Why?

Question 5: Perfect Competition Use the cost schedule below to answer the following questions about a price-taking firm who produces discrete units (there cannot be a half-computer in this world). ATC is average total cost, AVC is average variable cost and AFC is average fixed cost. Computers per Day Fixed Cost Variable Cost Total Cost Marginal Cost ATC AVC AFC Price $30 $0 $35 1 $30 $20 2 $30 $30 3 $30 $40 4 $30 $60 $30 $90 $30 $130 $30 $180 8 $30 $240 $30 $310 10 $30 $390 1. Fill out the schedule above. 2. Given the price information you've received, how many computers/day will the firm produce? What will be the economic profit (or loss) this firm receives? 3. If the firm is making a positive profit, do you expect it to persist in the long run? Why?

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

See similar textbooks

Similar questions

What two lines on a cost curve diagram intersect at the zero-profit point?
Costs and Profit Maximization Under Competition: End of Chapter Problem a. Use the variable cost (VC) information in the accompanying table to calculate average variable cost (AVC) and average cost (AC). Assume fixed cost (FC) is $350. Q FC VC AVC AC 10 $350 $100 20 $350 $180 30 $350 $240 40 $350 $300 50 $350 $450 60 $350 $630 70 $350 $840
Suppose you are thinking about starting a lawn service in your area. The lawn service market can be considered perfectly competitive. You own a $200 lawnmower. You have a fixed cost of $90 (maintenance costs on the mower, etc.). Your variable costs are as follows: # of Lawns Mowed Total Variable Costs Fixed Cost 1 $5 90 2 $15 90 3 $30 90 4 $50 90 5 $75 90 6 $105 90 7 $140 90 8 $180 90 9 $225 90 10 $275 90 a) Calculate Total Costs, Average Total Costs, Average Total Costs, Average Variable Costs, and Marginal Costs. b) Suppose that the going rate for lawns is $35 per lawn. How many lawns would you mow?
Please provide a clear presentation for the following, type only the answers here: 1.Plot total cost and total revenue in one graph 2.Plot Average revenue ,marginal revenue, average cost and marginal cost in one graph.
Draw and describe a diagram representing the cost curves – MC, AC, and AVC – for a profit-maximizing firm under perfect competition. Show U-shaped AC and AVC curves. Label the breakeven and shut down prices. Also, show a price between the breakeven and shut down prices and explain how the firm decides on its profit-maximizing/loss-minimizing output level at that price and show how the amount of profit or loss can be shown in the diagram. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Hayfever Farms is an 80-acre hay farm in Colorado. The owners are considering changing the farm's name to Blissful Acres and growing strawberries instead of hay. Use the table of marginal cost (MC) and marginal revenue (MR) to answer two questions. Number of acres MC $ MR $ (hay) MR $ (strawberries) 10 320 730 5600 20 200 730 5600 30 540 730 5600 40 730 730 5600 50 1200 730 5600 60 3200 730 5600 70 5600 730 5600 80 6700 730 5600 If they continue to only grow hay, how many acres should Hayfever Farms devote to growing hay in order to maximize profits? acres of hay: acres If the owners decide to only grow strawberries, how many acres should Blissful Acres devote to growing strawberries in order to maximize profits? acres of strawberries:
Explain how Coca-Cola, Inc. takes advantage of economies of scope.
Draw the following cases for perfect competition. Also perform box analysis for profit/loss. P>ATC AVC<P<ATC P<AVC
The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 / / / $ 95 1 $ $ $ 115 2 125 3 150 4 200 5 270 6 350 7 450 a. Complete above the table. b. What is the break-even price? Break-even price: $ c. What is the shutdown price? Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; : $ e. If the market price of the product is $100, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; : $
The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 / / / $ 100 1 $ $ $ 130 2 150 3 180 4 220 5 270 6 330 7 440 a. Complete above the table. b. What is the break-even price? Break-even price: $ c. What is the shutdown price? Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; (Click to select) Loss Profit : $ e. If the market price of the product is $110, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; (Click to select) profit loss : $
Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market. Output Fixed AFC Variable AVC Total ATC MC Cost Cost cost 1 $50 50/1=50 $30 30/1=30 30+50=80 80/1=80 NA 2 $50 50/2=25 $50 50/2=25 50+50=100 100/2=50 (100-80)/(2-1)=20 3 $50 50/3=16.67 $80 80/3=26.67 50+80=130 130/3=43.33 (130-100)/(3-2)=30 4 $50 50/4=12.50 $120 120/4=30 50+120=170 170/4=42.50 (170-130)/(4-3)=40 5 $50 50/5=10 $170 170/5=34 50+170=220 220/5=44 (220-170)/(5-4) =50 What can you expect from an industry in perfect competition in the long run? That is, what will the price be? What quantity will be produced? What will be the relation between marginal cost, average cost, and price?
Kindly help me with below homework question : Alpha is a price taking firm. At Its currant output level of 100 widgets. Alpha's total revenue is $2000. Marginal cost $8. Based on this information. which of the following can be deduced? A. Alpha is maximizing profits.B. Alpha's profits are negative .C. None of the above .D. Alphas profit are positive .