. A competitive firm’s short-run supply curve is its ________ cost curve above its ________ cost curve. a. average total, marginal b. average variable, marginal c. marginal, average total d. marginal, average variable
Q: Production, Costs, and Perfect Competition: Firm in the Short Period a. data (1) K = 7 and the price…
A: We have given that the firm is in short-run and capital is fixed at k=7, the Q Output Labor L 0…
Q: rm
A: The short run supply curve In a perfectly competitive market is the curve of marginal cost being at…
Q: a. Complete the above table. b. Graph TFC curve, TVC curve and TC curve on the same graph. c.…
A: as per your request last two questions has been done TC=TFC+TVC MC= ∆TC/∆Q TR=P*Q MR=∆TR/∆Q
Q: Explain the fact that the short-run supply curve for a price taking firm is that segment of its…
A: The individual supply curve of short-run is the marginal cost of an individual at all of the points…
Q: MC E ATC AVC Output igure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm.…
A: In perfect competition, eqm. Q(quantity) is determined by the intersection of MC(marginal cost) and…
Q: In perfect competition marginal cost curve of a firm shows supply curve of the firm in short run.…
A: The perfectly competitive markets are characterized by the presence of a large number of buyers, and…
Q: a. Draw the marginal cost and average total cost curves for a typical firm. Explain why the curves…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: a) What is meant by zero economic profit? (b) What are the conditions that need to be satisfied for…
A: Zero Economic Profit refers to no profit or no loss. It means that firm breakevens. In case of Zero…
Q: Question 3: Cost Table Question Complete the following short-run cost table for a perfectly…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: A. Is this firm working in a comppitive market or monomply? Explain. B. Is it working in short or…
A: The graph is:
Q: Which formula represents the profits for a firm? (check all that apply) (AC=average cost,…
A: Total cost is the overall cost incurred in the course of production of the good.
Q: Price and cost (dollars) 20 15.75 21 6,000 A B 8,000 SMC 1000 ATC AVC D-MR-$20 Quantity The above…
A: Introduction Perfect competition is a form of market where a large numbers of firms producing the…
Q: A perfectly competitive firm faces the short-run cost schedule shown in Table 1. Output 1 2 4 7…
A: Disclaimer:- as you posted multipart questions we are supposed to solve the first 3 questions only…
Q: (The Short-Run Firm Supply Curve) Use the following datato answer the questions below:…
A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…
Q: The graph below displays the short-run cost curves for Paola's Pears, a small farm competing in the…
A: perfect competition market is the form of market where large numbers of sellers and buyers exchange…
Q: Figure 12-18 Revenue MC and cost (dollars per unit) $40 MR ATC AVC 24 C 20 14 12 8 a 55 100 150 200…
A: A perfect competition is a market that has a large number of buyers and sellers selling homogeneous…
Q: . Calculate profit for each quantity. How much should the firm produce to maximize profut ? b.…
A:
Q: A perfectly competitive firm faces the short-run cost schedule shown in Table (a)Calculate average…
A: A perfectly competitive firm maximizes profit by prducing output at level where P = MC Total Revenue…
Q: A firm's costs are given in the following table. q TC TFC TVC AVC ATC MC O RM50 1 70 2 80 3 90 4 110…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 3.8 On the following graph for a purely competitive industry, Scale 1 represents the short-run…
A: Short run Cost is the cost price that has immediate effects on the production processes, i.e., they…
Q: A) In perfect competition marginal cost curve of a firm shows supply curve of the firm in short run.…
A: Solution: A) In perfect competition marginal cost curve of a firm shows supply curve of the firm in…
Q: Explain the fact that the short-run supply curve for a price taking firm is that segment of its…
A: The short-run decisions on production for a perfectly competitive firm have direct implications on…
Q: (b) Complete the following table. Using the following cost data how would you estimate the short run…
A: The perfect competition is a market form which shows a large number of buyers and sellers of a…
Q: a) How does imperfect competition differ from perfect competition? b) True or False and explain: If…
A: Ans. a In perfect competition there are large number of buyers and sellers and sellers are selling…
Q: a) Fill the column for marginal cost, total revenue and marginal revenue. b) What is interesting…
A: Costs Revenues Quantity Produced Total Cost $ Marginal Cost Quantity Produced Price $ Total…
Q: a. Complete the table. b. What is the highest profit or lowest loss available to this firm? c.…
A: Monopolistic Competition is a kind of imperfect market structure where a large number of firms…
Q: A perfectly competitive firm faces the short-run cost schedule shown in Table 1. A) Calculate…
A: Optimum level of output in perfect competition occurs when marginal cost and marginal revenue are…
Q: 2.5 A firm's costs are given in the following table. TC TFC TVC AVC АТС MC $50 1 70 80 3. 90 4. 110…
A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…
Q: poard s Styles s Font 2. A perfectly competitive firm has the following fixed and variable costs in…
A: In perfectly competitive market, profit is maximized at a point where price is equal to marginal…
Q: B) The figure below shows the total cost and revenue curves for a firm on the same diagram TC 60 50…
A: i) "Total cost represents the costs of producing something and in short run comprise of both fixed…
Q: 2. A profit-maximizing firm in a perfectly competitive industry has costs given by C = 80 + 2Q?,…
A: Firstly, it makes sense to define what perfect competition is. A perfectly competitive market is…
Q: When a firm in a competitive market produces 15 units of output, it has a marginal revenue of $8.00.…
A: In a competitive market there are many firms with free entry and exit so there are no barriers.
Q: (a) A competitive firm’s short-run supply curve depends on two curves. Which two exact curves are we…
A: A competitive market refers to a market in which there are multiple producers. The producers compete…
Q: Quantity of Output Total Cost $ MC 8.5 3.5 15 6.5 22 4 30.5 8.5 5. 45.5 15 a. What are the…
A: Hi, thank you for the question. Since there are multiple sub-parts posted, we will answer the first…
Q: (a) What are the basic assumptions that need to be satisfied for a market to be called perfectly…
A: Perfect competition is type of market structure in which there are large number of buyers and…
Q: 3. A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The…
A: Total cost function is given to be as:-TC = a + bQ² We have the case of a perfectly competitive…
Q: Mike Wazovsky runs a business that produces marmalade in small jars. He is proud of his business…
A: ATC (Average Total Cost) Average total cost refers to the cost of production per unit of output.…
Q: Concept Question 3.21 Question Help The following table shows marginal and average total cost…
A:
Q: A competitive firm’s short-run supply curve is its_________ cost curve above its _________…
A: The market is the collection of buyers and sellers. It is the system in which buyers and sellers…
Q: TABLE 8-1 Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue…
A:
Q: have is to maximize profits. Firm Price TR TC Profit/Loss VC ATC AVC MC 20 200 140 2 50 5000 -500…
A: The perfect competition is the market where there are infinite number of buyers(B) and sellers(S)…
Q: 1. A perfectly competitive firm realizes a tota revenue of $2500 and a profit of $500. Th firm sold…
A: TR = 2500 Profit = 500 Price = 12 ATC = ?
Q: If a profit-maximizing, competitive firm is producinga quantity at which marginal cost is between…
A: Perfectly competitive market structure is the characterized by the presence of a large number of…
Q: Price Average total cost AVC Demand Marginal cost Marginal revenue Quantity Discuss the frm plotted…
A: The graph is related to the Monopoly firm where . Monopoly firms refer to the market forms where…
Q: Suppose the price of eggs plummeted to $1.25 a dozen? What would Farmer Johnson's profit (or loss)…
A: We have to calculate at price p = $1.25, what is the loss or profit of the farmer.
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…
4. A competitive firm’s short-run supply curve is its
________ cost curve above its ________ cost curve.
a. average total, marginal
b. average variable, marginal
c. marginal, average total
d. marginal, average variable
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?a) What is the profit maximising condition in a market with perfect competition?b) Explain what is meant by abnormal profit? What is the adjustment process from short-run abnormal profit to long-run equilibrium in a perfectly competitive market?c) Please find below Pricing options for firm A and B, along with individual payoffs (Firm A’s payoff/Firm B’s payoff)Firm BFirm APrice £2 Price £1Price £2 £20,000/£20,000 £10,000/£24,000Price £1 £24,000/£10,000 £12,000/£12,000Assume you are the pricing manager at Firm A;i) What is your payoff for a ‘maximin’ strategy?ii) What is your payoff for a ‘maximax’ strategy?iii) Does a dominant strategy exist within this prisoners’ dilemma?6.a) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of the point would Penny's Parasols be certain to close down? A, B, C, D, or E. Explain: b) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which point(s) would Penny's Parasols endure economic losses, but continue to produce in the short run? D, F, A, C, or E. Explain: 6.c) Which point in Figure 8.7 represents a break-even situation for a perfectly competitive firm? A, B, C, D, or E. Explain: 6.d) At which point in Figure 8.7 would a perfectly competitive firm earn the same profit, or suffer the same loss, by producing rather than by shutting down? A, B, C, D, or F. Explain: Choose and explain your answer above thoroughly--graphical, algebraically, numerically. Kindly see screenshot attached. Please explain with as much detail as possible, using the graph in your answer.
- 6.a) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of the point would Penny's Parasols be certain to close down? A, B, C, D, or E. Explain: b) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which point(s) would Penny's Parasols endure economic losses, but continue to produce in the short run? D, F, A, C, or E. Explain: 6.c) Which point in Figure 8.7 represents a break-even situation for a perfectly competitive firm? A, B, C, D, or E. Explain: 6.d) At which point in Figure 8.7 would a perfectly competitive firm earn the same profit, or suffer the same loss, by producing rather than by shutting down? A, B, C, D, or F. Explain: Choose and explain your answer above thoroughly--graphical, algebraically, numerically.1-What are conditions of firm equilibrium? 2-what are the possibilities of perfect competition in short-run?9. a corn farmer will tend to expand his output as long as the price of corn exceeds aversge variabke cost and: a) marginal cost is smaller than the market price b) marginal revenue is larger than the market price of corn c) marginal revenue is positive d) marginal revenue is kess than the market price of corn
- (a) Why the competitive firm faces a relatively horizontal demand curve. (b) The profit maximization rule for a perfectly competitive firm states that the perfectly competitive firm will maximize its profits when it produces that quantity where marginal revenue equals marginal cost for the last unit produced and sold. In your own words explain why the firm is better off producing that quantity where MR = MC rather than that quantity where MR > MC or that quantity where MR < MC. (c) Should a firm shut down and why if its revenue is R=$ 1, 000. Its variable cost VC=$ 500 and its sunk fixed cost is F= $ 600. Its variable cost VC=$ 1, 500 and its sunk fixed cost is F= $ 500.1. 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]A perfectly competitive firm faces the short-run cost schedule shown in Table 1. A) Calculate average total cost (ATC=TC/Q), marginal cost (MC=∆TC/∆Q) and marginal revenue (MR=∆TR/∆Q) for each level of output. The price per unit of output is £16. B) Plot ATC, MC and MR on a graph and mark the profit-maximising output. At what output is profit maximised? C) How much profit/loss is made at the optimum level of output?