TABLE S-1Revenue and Cost Data for a Perfectly Competitive FirmDaily OutputPriceTotal RevenueTFCTVCTCProfit0.$30$0V$0$40-$401$30$30$40$12W-$22$60$40Y$68-$8$30$90$40$45$85Refer to Table 8-1. What is the AVC of producing three units of output?$15$32.66$45$502.3.

Average Variable Cost (AVC) is Total Variable Cost (TVC) per unit of output.

Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue TFC TVC TC Profit $30 $0 V $0 $40 -$40 1 $30 $30 $40 $12 W -$22 2 $60 $40 Y $68 -$8 3. $30 $90 $40 $45 $85 Z Refer to Table 8-1. What is the AVC of producing three units of output? O s15 $32.66 O $45

Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue TFC TVC TC Profit $30 $0 V $0 $40 -$40 1 $30 $30 $40 $12 W -$22 2 $60 $40 Y $68 -$8 3. $30 $90 $40 $45 $85 Z Refer to Table 8-1. What is the AVC of producing three units of output? O s15 $32.66 O $45

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 18P

See similar textbooks

Related questions

Q: What does "Global poverty is a harm inflicted by the global economy" mean?

A: Economic growth is the principle channel through which globalization can affect poverty. Any Global ...

Q: Consider the IS-LM AD-AS model (with adaptive expectations). Assume that the economy is initially in...

A: The long-run period is one such phase of economy wherein certain high level of investment like techn...

Q: Write two to three paragraphs of three to five sentences each describing how inflation occurs and wh...

A: In financial aspects, hyperinflation is utilized to portray circumstances where the costs of general...

Q: 7-42 A new car dealer advertises financing at 0% inter- est over 4 years with monthly payments or a ...

A: When the effects of compounding over time are considered, an effective annual interest rate is the r...

Q: If x items of a commodity are sold to a wholesaler, the price per item is 500 − 2x − 0.1x2 dollars. ...

A: Introduction It has given that x is no. of item sold to a wholesaler. Price of per item is = 500 - 2...

Q: Where does allocative efficiency occur? where the price of a good is equal to the marginal cost of p...

A: Allocative efficiency is a condition of the economy where creation is lined up with purchaser inclin...

Q: An asset for drilling was purchased and place in service by a petroleum production company. Its init...

A: Every machinery after being purchased goes through wear and tear and thus losses it value what it wa...

Q: Brenda wants to buy a new car and has a budget of $24,000. She has just found a magazine that assign...

A: a) The budget line would be given as PX*X+PY*Y= M Given the price of car increases by $4000 when one...

Q: Consider a firm facing a downward-sloping demand curve. Which of the following is true at the profit...

A: In the mentioned question we have been asked what will happen at the profit-maximizing level of outp...

Q: Assume Australia is an importer of sofas and there are no trade restrictions. Australian consumers ...

A: Demand and supply In an economy there is always a demand for goods and services and the supply of g...

Q: How to identify the economic market structure?

A: Market structure is known as the basis through which different industries in an economy are differen...

Q: What is the future value of $1,540 invested for 5 years at 5% interest compounded monthly? Round you...

A: Given: The principal amount is = $1,540 Years = 5 The rate of interest is = 5% compounded monthly To...

Q: The following represents a portion of the demand schedule faced by a monopoly firm. Price Quantity $...

A: Marginal Revenue is the change in total revenue that occurs when an additional unit of good is sold....

Q: Determine the present worth of the following cash flows based on an interest rate of 7.63% per year,...

A: The present value of any series of cash flows is equal to the sum of the present values of the indiv...

Q: The misperceptions theory concludes that: O A. in the short run, unanticipated monetary changes are ...

A: The Misperception Theory In the Long run the aggregate supply curve is inelastic curve but in short...

Q: Suppose the economy has 100 units each of goods X and Y and the utility functions of the (only) 2 in...

A: The initial endowments are not effcient and improvement is possible as explained below.

Q: examine different trade policy instruments and critically assess their impacts on national and firm ...

A: Tariffs, subsidies, import quotas, voluntary export limits, local content requirements, administrati...

Q: Explain what researchers have found on the costs and benefits of inflation?

A: Inflation is defined as the increase in the prices of goods and services in the economy over a perio...

Q: The equilibrium wage and quantity are W*=10 and Q*=40. a. Consider a minimum wage of W=$8. What will...

A: Since you have asked specifically to solve sub-parts c to f, providing you with the same. In a comp...

Q: For a price searcher utilizing a simple (uniform) pricing scheme, which statement best expresses the...

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: States with a corporate income tax are at risk O a) of being found in violation of federal law O b) ...

A: Corporate Income tax A corporate tax is basically a type of tax that is imposed on a company's earni...

Q: Is it possible that the violent members of the drug cartels can behave like cartels in legitimate ma...

A: Cartels are the group that is created by the firms in the market to gain control over the prices and...

Q: In the following scenarios, you will be given a product and an event. Determine what will happen to ...

A: Note:- “Since you have posted a question with multiple sub-parts, we will solve the first three sub-...

Q: (Table: Fresh Fruit Murket and Spoiled Not Foxxd T) Payofls are in thousands of dollars. Spoiled Not...

A: Nash Equilibrium is a situation when every player plays their best response and has no incentive to ...

Q: Find the present value of $750 to be paid four years from now when the prevailing interest rate is 1...

A: Amount = $750 Interest rate = 10% ( Compounder annually ) Tenure = 4 years in

Q: Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6....

A: "Gross domestic product indicates the monetary value of the final commodities and services (those wh...

Q: Negative Externalities Exercise 1 (Algo) Texarkana Electric Company burns coal to heat the water tha...

A: "A negative externality measures the difference between the private cost of an economic action and t...

Q: 1. Seven Cost Curves ve PL TC = Q² + 1O Neil's Nails has this short run total cost equation: Derive ...

A: Given; Total cost; TC=Q2+10 Therefore; Variable cost; VC=Q2 Fixed cost; FC=10

Q: What are the three reasons of migration? Explain each.

A: Migration refers to the movement of people from one country to another to settle permanently or temp...

Q: You are an accountant for a manufacturer of radios. The demand function for the tablets is p= 40-4x ...

A: Given Demand function p=40-4x2 .... (1) Cost function C(x)=15x .......

Q: Based on the discussion, identify and explain in your own words the significance of HDI in assessing...

A: The measure that depicts a measure of average achievements of countries in various dimensions of hum...

Q: PART B (INDEPENDENT THINKING AND APPLICATION) 5) (KEY QUESTION) Consider the following strategic int...

A: Answer - "Thank you for submitting the questions.But, we are authorized to solve only 3 sub parts .F...

Q: In bullet points, outline how the citizens of a foreign country benefit from the direct investment b...

A: When a company, business, individual, or organization in another country acquires controlling owners...

Q: When developing an interval estimate for the difference between two sample means, with sample sizes ...

A: Dear Student, as you have posted multiple questions but we can attempt only 1 question at a time acc...

Q: 1. Assume a market with only two individuals, A and B. The demand of individual A is Q = 10 - P, and...

A: A pure public good is non-rivalrous and non-excludable in nature. Market demand for a pure public go...

Q: How many Nash equilibria does this game have? hand written plzz

A: Nash equilibrium is states that the no player has an incentive to deviate from their strategy. That ...

Q: 7. My total gasoline bill for a year ($1,500) 8. A Chinese citizen buys a U.S. government bond ($5,0...

A: Hi! thanks for the question but as per the guidelines, we answer up to three subparts at one time. K...

Q: Determine the exact simple interest of Php 25,000 for the period from December 27, 2001 to March 23,...

A: Given Value of money at December 27 2001 P = 25000 Rate of interest r= 10% simple interest. We have...

Q: h. Note that we have reset the Iplanned to 320. If autonomous consumer spending drops to $40 billion...

A: Introduction GDP, YD and AE of a country will be same. This is the total income of a country. Table ...

Q: An industry having a four-firm concentration ratio of 25 percent Multiple Choice O approximates pure...

A: There are various structures of the market in the economy including oligopoly, perfect competition, ...

Q: An engineer promised to pay 36,000 at the end of 90 days.He was offered 10% discount if he pays in 3...

A: Given; Amount he promised to pay= 36000 Number of days= 90 days Discount offered in 30 days= 10% Amo...

Q: [1] The Kuznet's hypothesis has played an important role in shaping policy. (a) Explain the Kuznet's...

A: Kuznets hypothesis was advanced by the economists Simon Kuznets. According to critics Kuznets curve ...

Q: How do insurance companies make money?

A: As a for-profit firm, an insurance company must develop an internal business model that collects mor...

Q: Write two to three paragraphs explaining how J. P. Morgan helped the U.S. economy. Your response sho...

A: Morgan had deep and extremely beneficial connections with the London financial world as a result of ...

Q: A local company assembling stereo radio cassette produces 300 units per month at a cost of P800 ner ...

A: Break-Even Point The break even point is basically the production level at which total revenues equa...

Q: What is marginal revenue? the addition to total revenue from selling one more unit of output the add...

A: MR is the expansion in revenue that outcomes from the offer of one extra unit of result.

Q: On the other hand, opportunity seeking for social enterprise is different with a business enterprise...

A: It's a little redundant to call entrepreneurship "business." Every entrepreneur started a firm, or i...

Q: Consider two developed and developing countries, the population growth rate of developed countries i...

A: Given that; The population growth rate of developed countries is 2 % per year Saving rate = 30% The ...

Q: The equilibrium quantity of labor increases and the equilibrium wage decreases when: A) labor supply...

A: Labor supply is the number of people available for work.

Q: Average Fixed Cost Average Variable Cost 0.00 S Average Total Cost 0.00 105.00 $ Total Product Margi...

A: We know that the supply curve is the rising portion of the MC curve, which is over and above the ave...

Question

100%

TABLE S-1
Revenue and Cost Data for a Perfectly Competitive Firm
Daily Output
Price
Total Revenue
TFC
TVC
TC
Profit
0.
$30
$0
V
$0
$40
-$40
1
$30
$30
$40
$12
W
-$22
$60
$40
Y
$68
-$8
$30
$90
$40
$45
$85
Refer to Table 8-1. What is the AVC of producing three units of output?
$15
$32.66
$45
$50
2.
3.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
What is die difference between accounting and economic profit?
Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Your aunt’s opportunity costs comprise * If your aunt thought she could sell $510,000 worth of merchandise in a year, what is your aunt’s accounting profit? *$10,000-$40,000$460,000$0Given the above situation, what is your aunt’s economic profit? *$10,000-$40,000$460,000$0
J 7 let: MC = 12Q⁵+5Q⁶-4Q⁵-5 MR = 16Q¹⁵+15Q²-12Q⁶-10Q MP = 12X⁵+25X⁷-24X⁴-7X Determine the functions of total cost, total revenue, total production
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost Average Variable Cost 1 $250 $700 $950 $700 2 $250 $925 $1175 $225 3 $250 $315 4 $250 $360 5 $250 $400 6 $250 $450 7 $250 $550 If the company sells the computers for $550, is it making a profit or a loss? How big is the profit or loss? If the firm sells the computers for $315, is it making a profit or a loss? How big is the profit or loss? We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?
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.
Suppose a food company has both food and store divisions. The food divisionproduces burgers that are sold downstream at the store. Assume that the storesells 1,000 burgers at $10, 2,000 burgers at $9, 3,000 at $8, and so on up to10,000 burgers at $1. The price the food division charges for a burger is$3.50. What will be the profit-maximizing price for the entire company? How muchprofit will the company make? What is the revenue-maximizing quantity for thestore?
A tuition agency hires tutors to teach students. The following table displays how total outputincreases as tutors increase.No. of Tutors 1 2 3 4 5Total No. ofStudents4 10 18 24 3Tutors cost $50 each regardless of how many students each tutor has. The agency paid $500 in non-refundablemarketing fees to set up the business as a fix cost. In the short run, considering the shut-down condition, whatis the lowest price per student Tom’s tuition agency can charge? Explain your answer.
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? 2,000? 10,000? What is her ATC per poster if she prints 1,000? 2,000? 10,000? If the market price fell to 70 cents per poster, would there be any output level at which Karen would not shut down production immediately?
3. The fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are $12,500 per research project.a. If the revenue per project is $30,000, what is the breakeven number of projects of this lab in a year to sustain its operations?b. Currently, the lab works on 20 projects a year. What is their profit at this level?c. If variable costs increase to $13,000 per research project, what is the new BEP? By how much will their profit increase or decrease?
. In a perfectly competitive market there is a donut shop that sells 1,200 donuts daily. Each donut sells for the market price of $0.75 and they sell out every day. Assume that this company has labor costs of $275 and materials costs of $400. a. Using only variable costs, what is the donut shop’s daily profit? - Now assume that the owner is thinking of adding a second location downtown. The capital investment required is $4,000 (Sunk Cost). The $4000 is Sunk Cost. The normal rate of return is 5%. b. If the new shop could operate under the same conditions as the original location is it a good business decision to expand? c. What would be the new shop’s daily profit?