Solve all this question......you will not solve all questions then I will give you down?? upvote..... make?A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. Thefixed cost of production is $20,000. The price of each good is $10. Should the firm continue toproduce in the short run? Why or why not?DoptyPopular rock band U2 regularly sells out its concerts, charging $80 for its tickets.They could raise ticket prices to $120 and still sell out their concerts, but choosenot to do so. What is the best economic explanation for this decision?

Since you have posted two independent questions, according to the guidelines, only the first…

A perfectly competitive firm produces 3,000 units of a g fixed cost of production is $20,000. The price of each ga produce in the short run? Why or why not? ular rock band U2 regularly sells out its conc could raise ticket prices to $120 and still se do so. What is the best economic explanat

A perfectly competitive firm produces 3,000 units of a g fixed cost of production is $20,000. The price of each ga produce in the short run? Why or why not? ular rock band U2 regularly sells out its conc could raise ticket prices to $120 and still se do so. What is the best economic explanat

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 1MC

See similar textbooks

Related questions

Q: Refer to Figure 9-17. When the country moves from no trade to free trade, consumer surplus O…

A: Consumer surplus is the benefit for consumer arises by purchasing the good at price lower than…

Q: d. Find the price and quantity that maximizes revenue: price: quantity =

A: Business economics includes making business decisions and allocating resources in the face of…

Q: Create a diagram that depicts the relationship between ERP, MRP and MPS. Diagram should include a…

A: The purpose of this question is to show the includes modules for finance, human resources, supply…

Q: Exhibit 14-2 Price Level A B Real GDP In Exhibit 14-2, which curve represents short-run aggregate…

A: The total quantity (Q) of goods and services that all firms in an economy are willing and able to…

Q: University of Professional Studies, Accra (UPSA) was founded in 1965 as a private professional…

A: The purpose of this question is to imposed on buyer and seller but in both case it will create tax…

Q: Prove that for each odd natural number n with n greater than or equal to three,…

A: We have a product line called [(1 + frac12)]. (1 - \frac{1}{3}) (1 + \frac{1}{4}) [ ldots left(1 +…

Q: To calculate elasticity along a demand or supply curve economists use the average percent change in…

A: The objective of the question is to calculate the price elasticity of demand using the Midpoint…

Q: Quantity per unit of time C Quantity per unit of time Refer to the graph above. Assume the graph…

A: A demand curve is a graphical representation illustrating the relationship between the price of a…

Q: Explain how an increase in your nominal income and a decrease in your real income might occur…

A: This question asked us to explain the scenario where nominal income rises while real income falls…

Q: Question 16 With the aid of diagrams, outline the Cournot model of duopoly and explain what happens…

A: With the aid of diagrams, outline the Cournot model of duopoly and explain what happens in the…

Q: You know that it takes approximately 20 years for nominal GDP per capita to increase by 40% in…

A: The annual growth rate is a measure of how much a quantity (such as GDP, population, revenue, etc.)…

Q: The graph shows the relevant cost curves for a perfectly (or purely) competitive firm. What value…

A: This question asked us to find the price point necessary for the firm to earn positive economic…

Q: (a) Explain the law of diminishing marginal utility with the aid of a numerical example. Make sure…

A: Diminishing marginal utility, a foundational idea in economics, elucidates the declining…

Q: Gold is included in which of the following measures of the money supply of the United States? Select…

A: The question is asking about the classification of gold in the measures of money supply in the…

Q: here are two sellers who compete by choosing quantity (Cournot). The inverse demand is P = 120 − Q.…

A: In the economics strategy model known as Cournot competition, enterprises independently determine…

Q: Suppose you are given the following output and (incomplete, cost tapre (assume labor is the only…

A: Marginal cost (MC) is a fundamental concept in economics that represents the additional cost…

Q: A Section 1115 demonstration waiver led directly to ____. a. the expansion of home- and…

A: The objective of the question is to identify the direct outcome of a Section 1115 demonstration…

Q: Given the total utility function for a consumer, consuming two goods is U = x+2y + xy +2 the prices…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Graphically illustrate and explain what happens to the demand for laptop computers & tablets when…

A: Individuals' desire to buy a product or goods according to the willingness to pay is referred to as…

Q: The Federal Reserve unexpectedly cuts the interest rate and the European Central Bank keeps interest…

A: An exchange rate is the rate at which one currency is exchanged for another currency.

Q: When you have one buyer in the market for labor and one seller this is called? A. A monoposony B. A…

A: The objective of the question is to identify the correct term for a market situation where there is…

Q: There are two identical firms in an industry, 1 and 2, each with cost function , i = 1,2. The…

A: - Both firms' (Firm 1 and Firm 2) cost functions: C = C1 = C2 (This is not clearly stated in the…

Q: 5. This question is about the "fixed exchange rate regimes": a) "A monetary policy is not a policy…

A: The aim of this question is to explain the role of monetary policy in fixed exchange rates and to…

Q: If the market price for the perfectly competitive firm represented in Figure 1.5 is $4... Figure 1.5…

A: Perfectly competitive market is one in which there are large no of buyers and sellers in the market.…

Q: Which cost concept helps firms assess the additional cost of producing one more unit beyond the…

A: In the field of financial aspects and business, understanding different cost ideas is essential for…

Q: What are the causes, effects, and solutions of the rising income inequality in the United States?

A: The unequal distribution of income, wealth, and opportunities of the income gaining among people or…

Q: the economy had been operating at a full- employment equilibrium, a. Describe the macroeconomic…

A: The purpose of this question is to show the employment is the situation where economy operates at…

Q: What is the relationship between average variable cost and marginal cost? a) They are always equal…

A: Prior to diving into the connection between average variable cost (AVC) and marginal cost (MC), it's…

Q: Suppose the grocery store market in Kansas City is perfectly competitive. Then one store buys all…

A: A monopoly market operates at the intersection of MR and MC to produce optimal output. A perfectly…

Q: This question focuses on game theory. Andy and Brandi contribute to a public good they both enjoy.…

A: In the context of game theory, a dominant strategy is an ideal play that maximises reward…

Q: Suppose that the Bank of Canada determines that the Canadian economy is currently overproducing.…

A: This question asked us to identify the action the Central Bank can take to slow down economic…

Q: Imagine your firm has the short run production function: q = -2L4 + .5L² + 3L. What is the marginal…

A: Marginal product of labor measures the change in total output due to change in labor by one unit,…

Q: If a nation's GDP rises, then it must be the case that the nation's Question 35 options: income and…

A: The objective of the question is to understand the relationship between a nation's Gross Domestic…

Q: Could you explain the causes of Inflation in Turkey?

A: Inflation is a general increase in prices and fall in the purchasing value of money. In the case of…

Q: I Need all the way to 36 months please.....

A: Interest payment is the additional amount of money over the principal amount that a debtor has to…

Q: 38. Budget deficits are inflationary when a. b. the Federal Reserve contracts the money supply. the…

A: The objective of the question is to understand whether budget deficits can be inflationary under…

Q: What are real prices? A real price is a price that has been adjusted for inflation. A real…

A: Price refers to the amount of money or value assigned to a product, service, or resource.

Q: If the economic incentives "Covid-19" happens, about the goods 'mask', explain how to maximize…

A: Economic incentives are the rewards given in financial form by authorities like government which can…

Q: If the level of government spending were to increase by 50 units in the IS-LM schedule model, how…

A: The equilibrium in goods and money market in the Keynesian macroeconomic model is known as…

Q: Assume that the marginal propensity to consume is 0.6 and potential output is $1000 billion. If real…

A: The objective of the question is to determine the state of the economy given the marginal propensity…

Q: Consider two consumers with preferences Where Ti is the tax levied in jurisdiction i and Gi is…

A: The aim is to analysis is divided into three parts: introducing the amount of public goods preferred…

Q: Consider a small country that exports steel. Suppose that a “pro-trade” government decides to…

A: A government that rudely encourages international trade and places a strong emphasis on measures…

Q: In the “Consumer Surplus from Television” application, people are asked how much they would be…

A: The purpose of this question is to show the application is to measure the value of consumers…

Q: Keynesian economics is primarily focused on (A) national income (B) company balance (C) resource…

A: Keynesian economics, named after the English financial expert John Maynard Keynes, arose as a…

Q: Economic Efficiency is achieved when: O Consumer surplus is equally distributed among all…

A: The objective of the question is to identify the correct condition under which economic efficiency…

Q: Economics Question: 'The General Theory of Employment, Interest, and Money is a famous book written…

A: The General Theory of Employment, Interest, and Money is a famous book written by (A) John Maynard…

Q: Consider the following data on a firm: Number of Units Sold Total Revenue (£'s) 10 20 30 40 50 60 70…

A: The objective of the question is to analyze the firm's financial data to determine the price and…

Q: A balance of payments deficit is defined as the amount by which a. quantity supplied of a…

A: The objective of the question is to understand the concept of balance of payments deficit in…

Q: Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost…

A: The concept of CS helps to conclude the benefits received by the purchaser from purchasing a…

Q: comparative advantage

A: Economic boom refers to the growth in the cost of goods and services produced via an economic system…

Question

Solve all this question......you will not solve all questions then I will give you down?? upvote.....

make?
A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The
fixed cost of production is $20,000. The price of each good is $10. Should the firm continue to
produce in the short run? Why or why not?
Dopty
Popular rock band U2 regularly sells out its concerts, charging $80 for its tickets.
They could raise ticket prices to $120 and still sell out their concerts, but choose
not to do so. What is the best economic explanation for this decision?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define the costs

VIEW

Step 2: Analyze if the firm can or cannot continue production in the short run

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal cost of growing peaches for an individual grower are illustrated in the figure to the right. Assume that the market price for peaches is $30.00 per box. What is the profit-maximizing quantity for peach growers to produce? boxes. (Enter your response as an integer.) At this level of output, profit will be $. (Enter your response rounded to the nearest dollar.) Peach growers will earn positive economic profit in the short run at any market price above $ per box. (Enter your response rounded to one decimal place.) Price (dollars per box) 40- 36- 32- 28- 24 20 16- 12- 8 4- 10 MC 20 30 40 50 60 70 80 Output (boxes of peaches per day) ▬▬ ATC 90 100 Q
Suppose the market for beans is perfectly competitive. The average total cost and marginal cost of growing beans in the long run for an individual farmer are illustrated in the graph to the right. According to the graph, the long run equilibrium price for beans is $ per box. (Enter a numeric response using a real number rounded to two decimal places.) C Price and cost (dollars per box) 10- 9- 00 N 1 0 10 MC 20 30 40 50 60 70 80 Quantity of beans (boxes per week) ATC 90 100 N
A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost is $8 and its average total cost is $6. The firm’s profit amounts to what?
Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal cost of growing peaches for an individual grower are illustrated in the figure to the right. Assume that the market price for peaches is $28.00 per box. What is the profit-maximizing quantity for peach growers to produce? boxes. (Enter your response as an integer.) Price (dollars per box) 40- 36- 32- 28- 24- 20- 16- 12- 8- 4- 0 10 20 30 40 50 60 70 80 Output (boxes of peaches per day) MC ATC 90 100 oo Q
Suppose that the perfectly competitive chicken industry is in long-run equilibrium at a price of $3 per kilogram of chicken and a quantity of 600 million kilograms per year. Suppose Health Canada issues a report saying that eating chicken is bad for your health. Health Canada's report will cause consumers to demand chicken at every price. In the short run, firms will respond by Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of Health Canada's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther ? Supply Demand PRICE (Dollars per kilogram) QUANTITY (Millions of kilograms)
Will, Jill, and Phil are all wheat farmers. The wheat industry is perfectly (purely) competitive. The first chart shows how much each farmer produces at different price levels. The second chart shows each farmer's minimum average total cost (ATC), average variable cost (AVC), and marginal cost (MC). Based on this data (assuming these three are the only producers), answer the questions that follow. Short-run quantity supplied Price Will Jill Phil $2.00 4 2 0 $4.00 6 4 2 $6.00 9 5 4 $8.00 12 8 6 Firm a. What is the cause of the divergence in the short-run Minimum ATC and long-run supply curves? Minimum AVC Minimum MC $1.00 $2.00 Will Jill Phil $2.50 $5.00 $7.00 $2.50 $0.50 $1.00 $2.00 government regulation changes in the market differing individual cost structures b. Suppose that the market price dips to $2.25 in the short run before ultimately settling at $2.50 per bushel. Who exits immediately, and who exits in the long-run when costs are no longer fixed? Phil exits immediately, Jill…
Complete the table above. Graph AVC , ATC, and MC on the same graph. Suppose market price is $30. How much will the firm produce in the short run? How much are total revenue? Suppose market price is $50. How much will the firm produce in the short run? What are total profits?
A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues: TC = $830,000 VC = $525,000 TR = $428,000 Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns. is it Profit=TR-TC?
Suppose that the perfectly competitive chicken industry is in long-run equilibrium at a price of $3 per pound of chicken and a quantity of 600 million pounds per year. Suppose the Surgeon General issues a report saying that eating chicken is good for your health. The Surgeon General's report will cause consumers to demand chicken at every price. In the short run, firms will respond by . Shift the supply curve, the demand curve, or both on the following diagram to illustrate these short-run effects of the Surgeon General's announcement. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. In the long run, some firms will respond by until . Shift the supply curve, the demand curve, or both on the following diagram to illustrate both the short-run effects of the Surgeon General’s announcement and…
The diagram above represents a perfectly competitive firm that faces a demand curve d. Answer the following questions. Show all calculations. From the diagram, how many units should this firm produce to maximize profit? From the diagram data, calculate the firm’s total profit. Assuming no changes in the costs of production, in the long run how much will this firm produce and at what price? From the diagram, at what price will this firm break even? From the diagram, at what price should this firm shut down?
There are 80 perfectly competitive firms producing love letters, q. Each firm's cost function is C(q) = 4 + 4q². Market demand for love letters is Qp 240 - 5P. Use this information to answer questions #20 and #21. = 20. What is the short-run market equilibrium price for love letters? a. P = $8 b. P = $10 c. P = $16 d. P = $18.50 e. P = $24 21. What will happen to the number of firms selling love letters in the long-run? a. The number of firms in this market will decrease. b. The number of firms in this market will increase. C. The number of firms in this market will remain the same, but the market price will increase. d. The number of firms in this market will remain the same, but the market price will decrease. e. It is not possible to say what will happen to the number of firms without more information.
Assume the industry for flour tortillas in Denver is perfectly competitive. There are 200 firms. Seventy-five of the firms are “high-cost,” with short-run supply curves QHC = 5P. The other 125 are “low-cost,” with short-run supply curves QLC = 8P. Quantities are measured in dozens of tortillas and prices in dollars. Derive the short-run industry supply curve for tortillas QS. Assume the market demand curve for tortillas is given by QD = 10,000 − 625P. Find the market equilibrium price and quantity. At this price, how many dozens of tortillas are produced by the high- and low-cost firms, respectively? Determine total industry producer surplus at the equilibrium. Especially need the producer surplus.