essay (on this firm) argues that, the firm would be better off by closing down. Do youa unit of output of this company is Birr L3. A student working on his seniorA company in a perfectly competitive market has a total cost function given as:6.TC 50+40+The priceagree? ExplainBy using the knowledge of relationshins among the various cost concepts, fill the biacells of the following table.QuantityTFCTVCTCMCAFCAVCATC505064981622620finms (Fi and Fa) producing identical product competing forlike to dominate the other, if possible. They eachdefends

Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

6. Acompany in a pertectly competitive market has a total cost function given as: 40 0 TC 50 of a unit of output of this company is Birr 13. A student working on his senior essay (on this firm) argues that, the fim would be better off by closing down. Do you The pric

6. Acompany in a pertectly competitive market has a total cost function given as: 40 0 TC 50 of a unit of output of this company is Birr 13. A student working on his senior essay (on this firm) argues that, the fim would be better off by closing down. Do you The pric

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.9P

See similar textbooks

Related questions

Q: $5.50 $5.00 $4.50 $4.00 MC ATC AVC $3.50 P= MR $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 25 50 75…

A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…

Q: 3. Explain under each of the situation, a firm working under a perfectly competitive market would…

A: In perfect competition, a firm maximizes profit where Marginal Revenue equals Marginal Cost, such…

Q: ATC MC P. AVC Pa 10 II 12 Quonity lper dayl Assuming a perfectly competitive market, what is the…

A: in a competitive market there are large number of firms producing identical products thus acting as…

Q: 3. The following graph shows cost curves for a perfectly competitive firm. The market price of each…

A: The answer is given below

Q: The price of a case of ball bearings is $60. Seeing that he can't make a profit, the company's chief…

A: In the production process, different inputs are used to produce the final output. Each input has its…

Q: d) Hybrid car market is an example of a perfectly competitive market.

A: d.) Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: 24 Jlgw For a perfectly competitive firm, if MR = 8 TC=18 (A P=8 (B ATC = 8 (C AVC= 9 (D

A: A perfectly competitive market is characterized by the large number of firms selling homogenous…

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: The figure above shows the costs for a grower in the perfectly competitive turnip market. If the…

A: Given the price is $1200 Quantity at this price is 130 units ATC = Price = 1200

Q: MC Price (Rials per unit) ATC 7 AVC 5 4 5 10 12 15 16 Quantity (units) 37. In the above figure, at a…

A: 37. Competitive firm will be in equilibrium when either profit is maximized or loss is minimized.…

Q: Suppose a perfectly competitive firm is currently operating with the following information:…

A: The profit maximizing perfectly competitive firm will produce output at point where MR = MC. Here MR…

Q: 3. The figure below shows short run cost and revenue curves firm. Price and cost per unit MC £5 ATC…

A: 3) The curve shows the demand and MR curves along with the cost curves.

Q: 11 b. Assume that the market price in the short run is P = $11, Giyen the way YOU drew With the…

A: Long run average cost, or LRAC, is referred to the cost for an unit of output when all the factors…

Q: a. Fill out the table (already done in the last homework. Copy from answer sheet) b. Assume the cost…

A: A perfect competitive firm refer to the structure of the firm where the number of buyers and seller…

Q: $20 $18 MC ATC $16 P = MR $14 $12 AVC $10 $8 $6 $4 $2 $0 200 400 600 800 1,000 1,200 Output (Q) The…

A: A perfect competitive firm is always a price taker.

Q: 26. Use the chart below of a perfectly competitive market in the short run to answen the question…

A: We know that the profit maximization condition is marginal revenue is equal to marginal cost.

Q: The market for fertilizer is perfectly competitive.Firms in the market are producing output but…

A: a) In the competitive market, the firms produce to the level where the price (P) and marginal cost…

Q: Yann's bakery operates in a perfectly competitive market where the prevaling price for a baguette…

A: Price = $3 Marginal Cost = 0.1q

Q: Assume that Harry Ellis produces table lamps in the perfectly competitive table lamp market. OUTPUT…

A: Fixed Cost refers to that part or component of cost that remains fixed despite the varying quantity…

Q: 45. In a purely competitive market aitu ation, when is prof it maximum? 9. When Margin al reveme…

A: A market system in which a large number of small businesses compete against one another is known as…

Q: QUESTION 7 Which of the following will not hold true for a competitive firm in long-run equilibrium?…

A: A perfectly competitive firm is one that is unable to generate an economic profit in the long-run…

Q: Emma sells hand-made shawls in a perfectly competitive market for £18 per shawl. Emma’s fixed costs…

A: Total cost (TC)= Total Fixed cost (TFC) +Total variable cost (TVC). TFC is cost associated with…

Q: s coincid

A: The marginal revenue curve is a horizontal line at the market price which implies perfectly elastic…

Q: 2. Show and explain the equilibrium in the short run for a perfectly competitive firm. Why…

A: Under perfect competition, there are a large number of firms who sell identical products. The…

Q: For a perfectly competitive firm, if MR = 8 TC=18 (A P=8 (B ATC = 8 (C AVC= 9 (D

A: A perfectly competitive market is characterized by large number of firms selling homogenous product…

Q: EXplain the profit and lass Possi bilities of a price taker firm aand graphicoally draww tMe JUPPIY…

A: There are four possibilities of profit and loss in a price taking firm. These are Supernormal…

Q: e table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The accompanying graph depicts the marginal cost (MC), average total cost (ATC), and marginal…

A: Profit maximizing quantity is such quantity where marginal revenue equals to marginal cost.

Q: 3. The following graph depicts the costs of a price-taking firm (perfect competition). MC MC, ATC,…

A: a. Given: Price = $18 Q= 200 Firm's Total Revenue= Price * Quantity = 18 * 200 = 3600 Firm's Total…

Q: MC ATC 10 20 90 40 50 60 70 80 Refer to the following Exhibit: Quantity If this firm is perfectly…

A: In perfect competition, there exist many firms in the market.

Q: 6. Assume a perfectly competitive firm incurs a total cost of $10.000, marginal cost of $38, and…

A: A perfectly competitive business must accept the equilibrium price at which it sells its products…

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: 3 The figure below shows the cost curves for a profit-maxmizing firm in a periecny competitive…

A: Variable cost are the costs that proportionally change with the changes in the activity base such as…

Q: The following table depicts the cost and revenue structure of a profit-maximizing firm. FC Q VC AVC…

Q: Q TFC ($) TVC ($) MC($) MR($) TR($) TC($) Profit ($) A --- 15 30 G 25 D 3 55 E 75 4 B 45 160 F 6.…

A: A perfectly competitive firm is a price taker as there are large number of firms selling identical…

Q: Awhl f mco MC P-ME-D f wh Piease refer to the above graph of a perfectly competitive fim's cost and…

A: Dear Student, as your question contains multiple sub-parts but we are allowed to attempt only…

Q: Price (Rials NC ATC per unit MC ATC ANCAVC 5 10 15 16 15 6 22 In the above figure, at a price of RO…

A: A firm earns an economic profit if Total Revenue (TR) = P X Q, is greater than the Total Cost (TC) =…

Q: 3. Explain under each of the situation, a firm working under a perfectly competitive market would…

Q: 14. From the figure below, if the market price is $20, what is the amount of the firm's profit? S20…

A: A firm will be in equilibrium when its profit is maximized or loss is minimized. For this following…

Q: 13. The figure below represents the marginal cost of a small firm in a perfectly competitive market.…

A: 8) Looking at the utility function of the given people and the quantity purchased by Adele of x and…

Q: From the figure below, if the market price is $20 what is the amount of the firm's profit? Price and…

A: The perfectly competitive firm is a price taker and can sell any quantity of commodity at the market…

Q: ically competitive firm faces the following demand curve for its product: ice ($) uantity 10 9. 5.…

A: Monopolistic competitors produce up to MR> MC. That is, the additional revenue generated by the…

Q: Sally owns and operates a pizza house. The diagram shows the cost and revenue curves for the pizza…

A: Total profit is the difference between total revenue and total cost. Profit maximization is the…

Q: 10. When a perfecly competitive firma finds that its market price is beloww its minimum average…

A: For a perfectly competitive firm MR=MC=P.

Q: (b) Suppose under perfect competition a smartphone producer has total costs of production given by…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: Figure 16-12 Price 100 90 80 MC 'ATC 70 Fog 85 50 40 36 30 20 10 MR 4 12 16 20,24 28 32 Buaxtity d)…

A: Here, the given graph explains the situation under a firm with less competiton perfectly competitive…

Q: (a) Define the characteristic of imperfectly competitive market. (b)…

A: The market structure classifies the industries on the basis of what kind of product they produce and…

Q: TFC TVC TC AFC AVC ATC MC 60 15 3 4 50 5 8 22 140 8 60 9 300 10 50 a. Fill out the table (already…

A: Hi, according to our guidelines we are allowed to answer only question with three sub-parts in a…

Q: The above diagram illustrates the short run cost curves for Sarah Mat, a rice farmer in Queensland.…

A: In the short run, some of the inputs used in production is constant. Suppose, a firm hires laborers…

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…

Question

essay (on this firm) argues that, the firm would be better off by closing down. Do you
a unit of output of this company is Birr L3. A student working on his senior
A company in a perfectly competitive market has a total cost function given as:
6.
TC 50+40+
The price
agree? Explain
By using the knowledge of relationshins among the various cost concepts, fill the bia
cells of the following table.
Quantity
TFC
TVC
TC
MC
AFC
AVC
ATC
50
50
64
98
162
26
20
finms (Fi and Fa) producing identical product competing for
like to dominate the other, if possible. They each
defends

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

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

Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
Are there fixed costs in the lung-run? Explain briefly.
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.
What is die difference between accounting and economic profit?