shows the short-run cost curves of a toy producer. There are 1,000 identical toy producers. Price and cost (dollars per toy) 27- IT Price (dollars per toy) 24 Quantity demanded (thousands of toys per week) 1,000 24- MC 21 1,500 2,000 2,500 3,000 18 21- 15 12 ATC 18- AVC At what market prices would the firm shut down temporarily? What is the market price of a toy in long-run equilibrium? How many firms will be in the toy market in the long run? 15- The firm will shut down temporarily if the market price is below s per toy. 12- The market price of a toy in long-run equilibrium is S 9- 2000 Quantity (toys per week) 500 1000 1500 2500 When the market is in long-run equilibrium, there will be firms. >> Answer with a whole number.

shows the short-run cost curves of a toy producer. There are 1,000 identical toy producers. Price and cost (dollars per toy) 27- IT Price (dollars per toy) 24 Quantity demanded (thousands of toys per week) 1,000 24- MC 21 1,500 2,000 2,500 3,000 18 21- 15 12 ATC 18- AVC At what market prices would the firm shut down temporarily? What is the market price of a toy in long-run equilibrium? How many firms will be in the toy market in the long run? 15- The firm will shut down temporarily if the market price is below s per toy. 12- The market price of a toy in long-run equilibrium is S 9- 2000 Quantity (toys per week) 500 1000 1500 2500 When the market is in long-run equilibrium, there will be firms. >> Answer with a whole number.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.7IP

See similar textbooks

Similar questions

What two lines on a cost curve diagram intersect at the shutdown point?
A pastries company 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, $400 for the fifth, $450 for the sixth, and $500 for the seventh. First. Create a table that shows the company's output, total cost, marginal cost, average cost,variable cost, and average variable cost. Second. At what price is the zero-profit point? At what price is the shutdown point? Third. 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 AVC curves to illustrate your answer and show the profit or loss. Fourth. 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 AVC curves to illustrate your answer and show the profit or loss.
Pls don't use AI solution Consider a firm operating in a competitive market. The firm is producing 50 units of output, has an average total cost of production equal to 7 dirhams, and is earning 350 dirhams economic profit in the short run. What is the current market price?.
A competitive firm has the short-run cost function C(y) = 12y3−8y2+30y+12. At what price will the firm agree to produce in the short run? What is the shutdown condition for this firm? Show all working and explanation.
Please see how I've responded to the 2 questions below...Do you concur are am I off track here. What will the dollar amount of economic gain or economic loss be? The amount of loss would be Quantity*(ATC-Price)= 9*(17.5-16)=$13.5 What will be the price and quantity where the firm will shut down? Price where there is not able to recover average variable cost in the market. Shut down price is $12 and Quantity is 7 units
Asap Firm A works in a competitive market and earns 0 profit for the profit-maximizing quantity level. Cost function of the company is: TotalCost=3Q2-10Q+300 a- Find the price and quantity values for the profit-maximizing level. b- Let’s assume that the fixed cost increases to 500. Would you shut down or not the company (based on rationality)?
Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q Compute Bitcom’s short-run supply curve for its product. Show Calculations and can it be done in Excel?
M/c question - Micro 19) Refer to Figure 14-3. When the price is P2 and the firm maximizes its profit or minimizes its losses, what will occur at the firm? A. It will experience a loss but continue to operate. B. It will experience a zero profit. C. It will experience a positive profit. D. It will shut down 18) Refer to Figure 13-7. When does the firm experience economies of scale? A. if it changes its level of output from Q1 to Q2 B. if it changes its level of output from Q3 to Q4 C. if it changes its level of output from Q4 to Q5 D. if it changes its level of output from Q2 to Q3
Case D: Apex Company. Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost schedule in the table below. Apex’s product sells for $200 per unit. Quantity (units) 0 1 2 3 4 5 6 7 8 9 10 Total Variable Cost (TVC) 0 100 180 220 300 390 500 640 800 1000 1250 Answer the following questions: What is the profit-maximizing level of output? Calculate Apex’s profit. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case? If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case? Comment on your answers to parts (2) and (3).
7. Claude’s Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its present rate of output, Claude’s marginal cost is $65, average variable cost is $45, and average total cost is $67. To maximize his profit or minimize his loss in the short run, Claude should increase output reduce output but not to zero maintain the present rate of output shut down raise price 8. A price taker in a perfectly competitive industry is currently selling 6000 units per month at the market price of $8 per unit. Monthly total variable costs are $50,000 and total fixed costs are $20,000. Marginal cost is $8 per unit and rising. Economic profits a. are equal to zero b. are greater than zero c. are less than zero d. cannot be determined 9. Choose two (2) of the incorrect answers to multiple choice Question #7 (Claude’s Copper Clappers problem) and explain why they are incorrect.
The short-run market demand and supply for Kente cloth are expressed as follows: Demand:P=40-0.25Q Supply: P=5+0.05Q Marginal cost: -20+4Q a) Find short run level of output.
A firm’s marginal revenue is $133 and its marginal cost is $90. What amount of profit does the firm fail to pick up by refusing to increase output by one unit?