Suppose each business in a perfectly competitive industry has fixed costs of $12,000 and an average variable cost of $12 when each producing 1000 units and at minimum average cost. What is the break-even price in this perfectly competitive industry?
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- Hana Co. for Catering provides catered meals, and the catered meals industry is perfectly competitive. Hana’s machinery costs $30 per day and is the only fixed input. Her variable cost consists of the wages paid to the cooks and the food ingredients. The variable cost per day associated with each level of output is given in the accompanying table. Quantity of meals VC 0 0 10 200 20 300 30 480 40 700 45 900 Based on the table, what is the break-even price and what is the shut-down price for Hana Co. for Catering? Show your calculation.In a perfectly competitive market, please compare the short run and long run prices in an increasing cost industry. Are they same? If yes, what drives the equal prices? If not, what is the main reason of that difference?All firms in a perfectly competitive industry have a cost function given by: 10Q^2+200Q+2250. What is the profit maximizing quantity of each firm if the current market price is $500? What does each firms profit equal? Give typing answer with explanation and conclusion
- Does a competitive firm’s price equal the minimumof its average total cost in the short run, in the longrun, or both? Explain.The table below gives the short run total cost function for a typical firm in a perfectly competitive industry. Please answer related questions below Short Run Total Cost Function Quantity Produced Total Cost ($) 0 20 10 27 20 38 30 53 40 73 50 100 60 130 What is the market price? (Assume the firm is operating in a pure competitive market.)The top graph below shows the marginal cost (mc), average variable cost (avc) and average total cost (atc) curves for an individual firm in a competitive commercial ride sharing market where the price has stabilized. In the blank graph below it, use the straight line tool to draw the long-run market supply curve as a like from one edge of the graph to the other.
- The Emerald Company, a firm in the perfectly competitive custom jewelry industry, asks you for your expert economic opinion. They tell you the following: Total revenue is $110,000, Total fixed costs are $80,000 Total variable costs are $100,000 Marginal cost is $220/unit Quantity produced is 550 unit What is your advice based upon the information above? Keep operating and do not change the current production level. Keep operating and increase production Keep operating but decrease production Shut-down immediatelySuppose independent truckers operate in a perfectly competitive industry. If these firms are earning positive economic profits, what happens in the long run to the following: the price of trucking services, the industry quantity of output and the profits of trucking firms?In the short-run, if the marginal cost of a firm in a competitive industry is increasing while its average variable cost is downward sloping, what can you say about slope of average total cost?
- In the short run, a strawberry farm operating in a perfectly competitive market would produce strawberries at a profit if... Group of answer choices They sell each package of strawberries for $5, and the average variable cost is $4.75. Their fixed costs are less than their variable costs. Set the price for each package of strawberries above the prevailing equilibrium price. They sell each package of strawberries for $5, and the average cost is for each package is $5If the price of a product produced by a perfectly competitive firm falls belowthe average total cost, what would you predict about production in (i) short run (ii) long runThe following are the cost information of a typical ice tea company in an industry with 100 firms. Output (ice tea per hour) Marginal Cost ($ per ice tea) Average Variable Cost ($ per ice tea) Average Total Cost ($ per ice tea) 3 2.50 4.00 7.33 4 2.20 3.53 6.03 5 1.90 3.24 5.24 6 2.00 3.00 4.67 7 2.91 2.91 4.34 8 4.25 3.00 4.25 9 8.00 3.33 4.44 d) Is the price $8 a short-run or long-run equilibrium price for the industry? If the price is not a long run equilibrium price, what adjustments are likely to happen in the market for it to reach long run equilibrium. e) What price must prevail in the market for a typical firm to operate in the short run? At this price, how many ice tea will be supplied by all firms in the market?