EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 13.1, Problem 3QQ
To determine
Price and average total cost .
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Students have asked these similar questions
Perfect Competition
MC - Marginal Cost
MR - Marginal Revenue
ATC - Average Total Cost
Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, then the firm will set its price at ____ and produce ____ units.
$4; 40
$6; 40
$6; 55
$6; 30
Please answer all
1. Coldwater Bicycle Company operates its factories at capacity and holds a dominant market position in its home country. When it receives a premium priced order from a new customer in another country, it must decide whether to fill that order or continue to supply the full demand in its home market. When it decided not to completely fill the new order, it incurred
Group of answer choices
a. Sunk costs
b. Average costs
c. Opportunity costs
d. Marginal costs
2. What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month?
Group of answer choices
a. Potential buyers will lose buying power at the dealer
b. It may sell the remaining cars at huge discounts to hit the quota
c. It creates an incentive to sell cars from different manufacturers
d. It would ruin the relationship between dealer and manufacturer…
Imagine you own a company STR LLC. You produce homogenous and easily available goods. Explain the type of market
you are operating in. Elaborate your pricing strategy where you can earn normal profits. You have to show production
costs and revenue in a table at what production levels you manage to earn profits or otherwise make losses. References:
• Makowski, L., & Ostroy, J. M. (2001). Perfect Competition and the Creativity of the Market. Journal of economic
literature, 39(2), 479-535. Kaldor, N. (1935). Market imperfection and excess capacity. Economica, 2(5), 33-50.
Chapter 13 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 13.1 - Prob. 1QQCh. 13.1 - Prob. 2QQCh. 13.1 - Prob. 3QQCh. 13.1 - Prob. 4QQCh. 13.4 - Prob. 1QQCh. 13.4 - The D2e segment of the demand curve D2eD1 graph...Ch. 13.4 - Prob. 3QQCh. 13.4 - Prob. 4QQCh. 13.A - Prob. 1ADQCh. 13.A - Prob. 2ADQ
Ch. 13.A - Prob. 3ADQCh. 13.A - Prob. 4ADQCh. 13.A - Prob. 1ARQCh. 13.A - Prob. 2ARQCh. 13.A - Prob. 3ARQCh. 13.A - Prob. 1APCh. 13.A - Prob. 2APCh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3P
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Similar questions
- The purely competitive firm in the above exhibit should a. shut down b. produce 5 units of output c. produce 10 units of output d. produce 12 units of output e. produce 20 units of output 6. At the profit-maximizing/loss-minimizing level of output, what is the firm’s profit or loss? Based on this situation, what do you recommend for the firm and why?arrow_forwardmultiple choice Assume that the tuna fishing industry is perfectly competitive. Which of the following best characterizes the industry if, as demand for tuna increases, fishing boats have to go farther into the ocean to harvest tuna? 1- a constant-cost industry 2- a fixed-cost industry 3- a decreasing-cost industry 4- an increasing-cost industryarrow_forwardWhich of the following is not a characteristic of perfect competition? a. Absence of economies of scale for individual producers. b. Easy entry into the industry. c. A large number of firms advertising extensively in an attempt to increase market share. d. No product promotion strategy for individual firms e. Standardized productsarrow_forward
- Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $240 $90 $60 $180arrow_forwardInstructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. A loss should be entered as a negative number. Check my work b. Given a price of $8 per gift box, how many boxes of chocolate should Choco Lovers produce? gift boxes What will the profit or loss be per gift box? 24 per gift box C. Suppose that Choco Lovers raises the price to $10 per gift box. Now how many boxes should Choco Lovers produce? gift boxes What will the new profit or loss be per gift box?arrow_forwardi. Calculate the marginal cost, marginal revenue and profit for each unit of production. ii. How many units should the firm produce to maximise profit?arrow_forward
- Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost AVC - Average Variable Cost Refer to the figure above. If this firm decides to operate and is producing the profit-maximizing quantity, then the firm's profit will be: $40 $0 - $40 $240arrow_forwardQuestion 5: Perfect Competition Use the cost schedule below to answer the following questions about a price-taking firm who produces discrete units (there cannot be a half-computer in this world). ATC is average total cost, AVC is average variable cost and AFC is average fixed cost. Computers per Day Fixed Cost Variable Cost Total Cost Marginal Cost АТС AVC AFC Price $30 $0 $35 1 $30 $20 $30 $30 3 $30 $40 4 $30 $60 $30 $90 6. $30 $130 7 $30 $180 8 $30 $240 $30 $310 10 $30 $390 1. Fill out the schedule above. 2. Given the price information you've received, how many computers/day will the firm produce? What will be the economic profit (or loss) this firm receives? 3. If the firm is making a positive profit, do you expect it to persist in the long run? Why?arrow_forwardIdentify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?arrow_forward
- Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's profit will be: $240 $160 $80 $60arrow_forwardMultiple choice questions - Microeconomics 37)In a market that allows free entry and exit, when does the process of entry and exit end for the typical firm in the market? A. when average revenue exceeds marginal cost B. when total revenue is equal to average total cost C. when accounting profit is zero D. when economic profit is zero 36)arrow_forwardThe table below shows cost and revenue information for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Instructions: Enter your answers rounded to two decimal places. Quantity of Gift Boxes 20 25 30 35 40 45 b. Total revenue = Choco Lovers Cost and Revenue TC ($) ATC ($) 5.75 5.50 5.42 c. Profit = $ 227.50 d. Profit per unit = $ 115.00 137.50 162.50 192.50 232.50 282.50 Assume the profit-maximizing price is $8 per gift box, and then answer the following questions: a. Profit-maximizing quantity = 35 gift boxes 12 5.81 6.28 MC ($) per gift box 5.00 4.50 5.00 6.00 8.00 10.00arrow_forward
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