Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. Indicate which of the following graphs accurately reflects Sparkle's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve. A Demand Demand ATC ATC MC MC- MR MR Quantity of Sparkle Toothpaste Quantity of Sparkle Toothpaste O A B Price, Cost, Revenue Price, Cost, Revenue

Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. Indicate which of the following graphs accurately reflects Sparkle's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve. A Demand Demand ATC ATC MC MC- MR MR Quantity of Sparkle Toothpaste Quantity of Sparkle Toothpaste O A B Price, Cost, Revenue Price, Cost, Revenue

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section7.5: Long-run Supply Curves Under Perfect Competition

Problem 1YTE

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Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. Indicate which of the following graphs accurately reflects Sparkle's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, and marginal-cost (MC) curve.
Bavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q Where Q is the number of wine decanters produced monthly. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What quantity would maximize profits? What is the optimal price for Bavarian Crystals to charge?
Fruit market (a perfectly competitive market), the industry demand and supply of tomato (a homogenous product) is given by the following equations respectively: Qd = 50 − P Qs = 1 + 3P The typical firm’s total cost is given by the following equation: TC = 10 + 0.5Q2 + 5Q What is the profit maximizing level of output for the firm? How much profit is this firm earning? Show it graphically Is it short run or long run? Explain!
A perfectly competitive firm produces good X and has the following weekly cost data. ( Q = total output; TFC = total fixed cost; TVC = total variable cost): Q (units) TFC ($) TVC $ TC ($) ATC $ AVC $ MC $ 0 0 120 1 172 2 219 3 261 4 300 5 342 6 389 7 441 8 499 9 565 10 641 (a) Complete the above table. Round off values to the nearest two decimal places. (b) For each of the following prices determine this firm’s profit- maximising (or loss-minimising) output per week in the short run, and calculate the weekly profit or loss. Show your calculations (to two decimal places). (b.i) $42.50 (b.ii) $47.50…
Firm Alpha operates in a perfectly competitive market in a constant-cost industry and is earning negative economic profit. How does Firm Alpha determine its profit-maximizing quantity of output? Explain. Draw correctly labeled side-by-side graphs for Firm Alpha and the market it operates in. Label the axes and all of the following: Market price (PE) and market quantity (QE) The firm's quantity of output (Qe) The firm's average total cost (ATC) Completely shade the area of the firm's total cost. Identify whether the following increase, decrease, or remain constant as the market moves to long-run equilibrium: Market equilibrium quantity Market equilibrium price Assume the product that Firm Alpha produces has a negative externality. Draw the marginal social cost (MSC) on the market graph from part (b). Will the unregulated market produce more or less than the socially optimal quantity? Label the socially optimal quantity (Qso) for the market on your graph from part (b).…
Firm Alpha operates in a perfectly competitive market in a constant-cost industry and is earning negative economic profit. How does Firm Alpha determine its profit-maximizing quantity of output? Explain. Draw correctly labeled side-by-side graphs for Firm Alpha and the market it operates in. Label the axes and all of the following: Market price (PE) and market quantity (QE) The firm's quantity of output (Qe) The firm's average total cost (ATC) Completely shade the area of the firm's total cost. Identify whether the following increase, decrease, or remain constant as the market moves to long-run equilibrium: Market equilibrium quantity Market equilibrium price Assume the product that Firm Alpha produces has a negative externality. Draw the marginal social cost (MSC) on the market graph from part (b). Will the unregulated market produce more or less than the socially optimal quantity? Label the socially optimal quantity (Qso) for the market on your graph from part (b).
Answer the questions based on the table below - Complete the table below. - In which market does this firm operate? Explain your reasons. - Determine the equilibrium output. Calculate whether the firm will it be earning a profit or suffering a loss at equilibrium. Quantity(unit) Total Revenue($) Average Revenue($) MarginalRevenue($) TotalCost($) MarginalCost($) 1 10 5 2 18 11 3 24 16 4 28 20 5 30 23 6 30 25
(Figure: Price and Quantity of Output and Table I) For simplicity, assume that there are only three firms in a perfectly competitive industry; their short-run supply curves are depicted in the graph. At a market price of $40, the industry output is ____. A. 4 B. 1 C. 15 D. 9.5 Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Consider a form that is participating in this market (refer to P, Q (firm quantity), ATC, and AVC in the table below). Graphically illustrate this firm, graph the ATX, AVC, MC, and demand curves and calculate the total revenue, total cost, total fixed cost, total variable cost, and profit for this firm. identify the profit case. 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.
A typical profit-maximizing firm in a perfectly competitive constant-cost industry is earning a positive economic profit.(a) Is the market price greater than, less than, or equal to the firm's price? Explain.(b) Draw correctly labeled side-by-side graphs for both the market and a typical firm and show each of the Following(i) Market price and quantity, labeled Pm and Qm.(ii) The firm's quantity, labeled Qf(iii) The firm's average revenue curve, labeled AR(iv) The firm's average total cost curve, labeled ATC(v) The area representing total cost, shaded completely(c) If one firm in the market were to raise its price, what will happen to its total revenue? Explain.(d) Now suppose the market is in long-run equilibrium. The government gives a lump-sum subsidy to each firmproducing in the industry. Indicate whether each of the following will increase, decrease, or remain the same.(i)The firm's quantity in the short run. Explain.(ii) The market price and quantity in the long run. Explain.
Q2 (a). Assume apples are sold in a perfectly competitive market and firms are making zero economic profit. Explain and illustrate graphically, the effect of increase in market price on the short run position of a single firm selling apples. (Hint: Make sure your graph includes the firm’s demand curve, marginal revenue curve, marginal cost curve and average total cost curve and also explain the profit maximising position of a firm) Q2 (b). Based on the short run position identified in Q2 (a) explain and illustrate graphically effect of entry/exit on the long run position of the firm. (Hint: your answer should include graphs for both market as well as individual firm.) To clarify, there are no values provided (no price change value etc.), the answers simply need to represent the concept of what would happen.
Assume perfect competition:Price: $61Cost: TC = 9Q + 0.03Q2Solve for the profit-maximizing Quantity produced by an individual firm in the short run. ROUND TO THE NEAREST WHOLE NUMBER