What is the behavior of Marginal revenue, Average revenue and price under perfect competition? Also explain the relationship between AR and MR curve under monopoly
Q: Q4. Perfect competition is considered a better choice for consumers because they get quality…
A: Perfect competition is a market structure where goods are identical. consumers have perfect…
Q: 1) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its…
A: Since you posted multiple questions, we will provide the answer for first one questions.
Q: Question 8 The competitive firm earns zero or normal profit in long run because O Total revenue is…
A: An economic benefit is equal to the sum of revenue minus the total value, where the cost is measured…
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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Revenue and cost (dollars per unit) MC AVC 50 ..... 40 10 10 20 30 40 50 Output (units per day) The…
A: For a competitive firm, price are given and it has to produce and sell the output at this given…
Q: 13) The cobalt mining company is perfectly competitive. Each existing firm and every potential…
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Q: Figure: The Perfectly Competitive Firm Price (per unit) MC ATC $3.00 788 1.00 400 250 300 Output…
A: The perfect competition is the form of market consist of large number of buyers and sellers, selling…
Q: 1. What is the Total revenue generated by Blue INK at the profit maximizing level of output?[ Answer…
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Q: The following table contains revenue and cost information for a perfectly compet firm producing…
A: given total revenue and variable cost Fixed cost remains the same Total cost = fixed cost +…
Q: let: MC = 12Q⁵+5Q⁶-4Q⁵-5 MR = 16Q¹⁵+15Q²-12Q⁶-10Q MP = 12X⁵+25X⁷-24X⁴-7X Determine the functions of…
A: In the mention question we have been asked to calculate the total cost, total revenue and total…
Q: 31. Marginal revenue is always less than price at all levels of output in A. O Perfect competition…
A: To find : Marginal revenue is always less than price at all levels of output in which situation.
Q: 9. Marginal revenue equals marginal cost in perfect competition when... a) A firm is in equilibrium…
A: There are large number of buyers and sellers in the perfectly competitive market. Firms are only…
Q: Question 5 Consider the following total cost schedule for a perfectly competitive firm producing…
A: For a competitive firm p=mR and it should produce even in the losses if P> AVC.
Q: (i) Complete the Table above by filling in the blank cells. (ii) Based on the above Table,…
A: The term “profit” is defined as the excess of the total revenue over the total cost. Total revenue…
Q: 2. A price taker in a perfectly competitive industry is currently selling 6000 units per month at…
A: Total cost = TFC + TVC = $20,000 + $50,000 = $70,000
Q: What is the relationship between marginal revenue (MR) and average revenue (AR)? Select one: a. AR…
A: The answer is - d. AR increases when MR is greater than AR.
Q: 1. Identify and explain the logic of the profit maximizing rule for pure competition. 2.…
A: competitive market is the form of market where competition is so high and there are large number of…
Q: perfect competition
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: QUESTION 11 The competitive firm earns zero or normal profit in long run because O Total revenue is…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Perfect competition is an economic term that refers to a theoretical market structure in which all…
A: Meaning of Competitive Market: The term market refers to the situation under which the producers…
Q: 5. The cost function for a firm facing perfect competition is C(q)=1000+25q-0.5q^2+0.01q^3 Sketch…
A: The marginal cost (MC) is the additional cost incurred by the firm when it produces one more output…
Q: 23. In case of perfect competition in the market A. O Marginal revenue curve always slopes upward B.…
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Q: The first picture below depicts the cost curves for a representative firm in this perfectly…
A: Average total cost (ATC): ATC is the total cost per unit of output. It can be express as: ATC = TC/Q…
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A: When a new firm enters the market with identical products it reflects the Perfect competition…
Q: 58. How can a firm under pure competition maximize its profit or minimize its loss? compare total…
A: Note:- Since we can only answer one question at a time and the question is not specified, we'll…
Q: 13) The cobalt mining company is perfectly competitive. Each existing firm and every potential…
A: Firms in perfect competition sell identical goods which makes them price takers, that is they accept…
Q: (a) Why the competitive firm faces a relatively horizontal demand curve. (b) The profit…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Assume that a purely competitive firm has the schedule of costs given in the table below. Output TFC…
A: (a) When p=$50, TR=50*Q TC=Given Profit=TR-TC
Q: QUESTION 5 Assume the XYZ Corporation is producing 20 units of output. It is selling this output in…
A: A perfectly competitive market structure is one where there are large number of buyers and sellers,…
Q: QUESTION 2: Consider the cost curves for a perfectly competitive fim. $9.00 $8.00 $7.00 $6.00 ATC…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: 2) What do you understand by the term "perfect competition?" b) Give exemplary explanations? c)…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The characteristics of a "perfectly competitive" market require that there is 1) a large number of…
A: The term "perfect competition" refers to a condition in the market in which buyers and sellers are…
Q: 8. Which of the following markets comes close to satisfying the assumptions of a perfectly…
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Q: QUESTION 8 Which of the following is true for monopoly and perfect competition? A. The demand for…
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A: (i) Profit is maximized when P=MR=MC in a perfect competition. Given that P=RM30 MR is the marginal…
Q: What is the behavior of Marginal revenue, Average revenue and price under perfect competition? Also…
A: Marginal revenue (MR) is the extra revenue gained from the sale of an additional unit of good or…
Q: Name the four market structures and the industry characteristics that determine them. 2. Why do you…
A: Answer- "Thank you, for submitting the question but we are authorized to solve one question at a…
Q: What is the behavior of Marginal revenue, Average revenue and price under perfect competition? Also…
A: There are several market structures in an economy namely perfect competition, monopoly, monopolistic…
Q: (a) A firm operates in a market of pure competition where the market price for a product is…
A: TC = 13Q3 - 6Q2 + 44Q MC = Q2 - 12Q + 44 Price = $15
Q: Question 7 All of these are necessary for perfect competition, EXCEPT: O A. no barriers to market…
A: A completely competitive market is a speculative market where rivalry is at its most prominent…
Q: 1- Explain how economic profits and losses influence the number of firms in a purely competitive…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: 2. Show graphically the following conditions: 1) Super Profit of a Perfect Competition firm in short…
A: Perfect competition market consists of large number of sellers who are price takers as the market is…
Q: 3. A perfectly competitive industry has a large number of potential entrants. Each firm has an…
A: In perfect competition, the long-run equilibrium exists when:Long-run average cost = Long-run…
Q: t Defender Advanced Threa 3) Consider the following short-run cost curves for a profit-maximizing…
A: In perfectly competitive market, Price is constant. Firms produce identical goods that implies firms…
(b) What is the behavior of Marginal revenue, Average revenue and price under
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- What is the behavior of Marginal revenue, Average revenue and price under perfect competition? Also explain the relationship between AR and MR curve under monopoly5. The cost function for a firm facing perfect competition isC(q)=1000+25q-0.5q^2+0.01q^3 Sketch the firm’s cost curves and supply curve on one set of axes. a.sketch MC,AVCAFC, and ATC. The basic shapes and relationshipsshould reflect the cost functions above,but you do not need exact numbers. b. On the same axes,sketch the firm’s supply curve.Your curve shouldstart from P=0.6. A firm manufactures and markets a product that sells for Birr 20 per unit. Fixed costs associated with activity total Birr 40,000 a month, while variable cost per unit is Birr 10. A maximum of 10,000 units can be produced and sold. Required: a) Drive the TR, TC and Total profit functions. b) Sketch the TR, TC and Total profit functions in the same coordinate system. c) What is the Break-even point (in terms of quantity and sales volume)? d) Drives the new TC, Total profit functions given that FC is increased by Birr 10,000 a month, and calculate the new break-even point. e) Drive the new TC and Total profit functions given that unit variable costs is decreased by 20% and calculate the new Break-even point. f) Drive the new TR and Total profits functions given that the unit selling price increases by 20% and calculate the new break-even point. g) What is the relationship that you may inter from BEP& FC, P& BEP and V& BEP? h) Assume selling prince increases by 10%…
- 3 - If the price of the goods sold by firm X operating in the Perfect Competition Market is 10 TL, the quantity is 5 units, and the unit cost is 8 TL, what is the average revenue? a) 10 B) 80 C) 5 D) 50 TO) 81. Suppose a perfectly competitive firm is operating in short run. The information of MR, Q,ATC and AVC are 15 taka, 60 unit, 45taka and 35 taka respectively. Calculate firm’sprofit/loss and total fixed cost. From these calculations and based on all the giveninformation, can you conclude about the firm’s decision in short run? Explain your reasoningwith the help of a suitable diagram. Show all the relevant information in yourdiagram.[Q=profit maximizing output and MR=marginal revenue]Logically explain (b) What is the behavior of Marginal revenue, Average revenue and price under perfect competition? Also explain the relationship between AR and MR curve under monopoly
- Given: Desktop Publishing Software Inc, develops and markets software packages for business computers. Although, sales have grown rapidly during recent years, the company's management fears that a recent onslaught of new competitors may severly retard future growth opportunities. Therefore, it believes that the time has come to "get big or get out". The marketing and accounting departments have provided management with the following monthly demand and cost information: P = $1,000 - $1Q TC = $50,000 + $100Q Question 1: Find; Derive the Marginal Revenue & Marginal Cost Equations TR = ___________ MR = ___________ TC = ___________ MC = ___________ Question 2: Profit Maximization: Solve for Monthly Q, P, TR, TC and Profit Q = ___________ P = ___________ TR = __________ TC = __________ PROFIT = __________ Question 3: Revenue Maximization: Solve for monthly Q, P, TR, TC, and Profit Q = ____________ P = ____________ TR = ___________ TC = ___________ Profit = __________Refer to Figure 1 for questions 18-20. In Figure 1: D = Demand Curve; MR = Marginal Revenue Curve; and MC = LRATC is Marginal Cost, assumed to be equal to Long Run Average Total Cost. What is the competitive output and price for this market? Options: a) P = $3, Q = 7 b) P = $6, Q = 4 c) P = $3, Q = 4 d) P = $6, Q = 7Question 15 (i) Which of the following is(are) correct about how accountants and economists consider costs? Accountants consider only implicit costs Economists consider both explicit and implicit costs A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2 (ii) Which of the following statements is(are) correct for a monopoly firm and a competitive firm? Both firms earn economic profit in the long run. Both firms aim to maximize profit and produce at P = MC. A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2
- no chagpt urgent. Which of the following is a barrier to entry in a perfectly competitive industry? a)brand name recognition b)patents or copyrights c)economies of scale d) all of the above are correct e)none of the above is correctPrice (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.Mondi Company produces party boxes that are sold in bundles of 1000 boxes. The market is highly competitive, with boxes currently selling for R100 per thousand. The company has a total and marginal cost curve given by: TC = 3,000,000 + 0.001Q2 MC = 0.002Q Q is measured in thousand box bundles per year. [5] a. Determine Mondi's profit maximizing quantity. b. Calculate if the firm is earning a profit or a loss? c. Based on the analysis above, should Mondi Company operate or shut down in the shortrun?