The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

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Chapter 15, Problem 7SPPA

To determine

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

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The situation facing by firm "Smart", a producer of running shoes, is shown in the following figure. 100 MC ATC 80 60 40 20 MR 50 100 150 200 Quantity (pairs of running shoes per week) a. What quantity does Smart Shoes produce? Answer: b. What is the price of a pair of Smart shoes? Answer: c. What is Smart's economic profit or economic loss? Answer: Why MR curve is below to demand curve Price and cost (dollars per pair) 8

Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?

Next question ice and cost (dolars per par) The graph shows the long-run situation facing a producer of running shoes. In the market for running shoes, all the firms face a similar demand curve and have similar cost curves 120- Draw a vertical arrow that shows the firm's markup at the profi-maximizing quantity. Label R. MC t004 What is a fim's markup? /ATC A fem'u markup is the amount by which exceeds OA price; average total cost 60 OB. price, marginal cost OC. average total cost marginal revenue OD. average total cost marginal cost 20- Describe the market of a firm in perfect competition MR O 25 7 100 1is e ths 200 zis Quantity (pain of shoes per week) A firm in perfect competition has OA a markup similar to a firm in monopolistic competition OB. no markup > Draw only the objects specfied in the question Oc. a negative markup O D. a markkup similar to a monopoly

Answer 2

Question

Chapter 15, Problem 7SPPA

To determine

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

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Answer 3

Question

Chapter 15, Problem 7SPPA

To determine

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

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Answer 4

Question

Chapter 15, Problem 7SPPA

To determine

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

Expert Solution & Answer

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Answer 5

Chapter 15, Problem 7SPPA

To determine

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

Answer 6

Chapter 15, Problem 7SPPA

To determine

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

Answer 7

Chapter 15, Problem 7SPPA

To determine

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

Answer 8

Expert Solution & Answer

Answer 9

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Answer 10

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Answer 11

Ch. 15 - Prob. 1SPPA Ch. 15 - Prob. 2SPPA Ch. 15 - Prob. 3SPPA Ch. 15 - Prob. 4SPPA Ch. 15 - Prob. 5SPPA Ch. 15 - Prob. 6SPPA Ch. 15 - Prob. 7SPPA Ch. 15 - Prob. 8SPPA Ch. 15 - Prob. 9SPPA Ch. 15 - Prob. 10SPPA

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

Solution Summary: The author explains that Lin will produce the quantity at which its marginal cost is equal to its price. In the long run, the firm will enter the market when there is an economic profit.

The quantity which Lin will produce and the firm's economic profit, and whether the firm will exit or enter into the market along with the long run economic profit is to be estimated.

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Chapter 15 Solutions