ATC 12 AVC 1000 1500 1800 Use the graph above to answer the following questions. The graph represents a perfectly competitive firm where the market price is $4 The profit maximizing point of production is The total revenue earned by this firm is The total cost incurred by this firm is S The total profit eamed by this firm is S This firm will shut down" or "continue"? The long run market price should be S according to the graph above

ATC 12 AVC 1000 1500 1800 Use the graph above to answer the following questions. The graph represents a perfectly competitive firm where the market price is $4 The profit maximizing point of production is The total revenue earned by this firm is The total cost incurred by this firm is S The total profit eamed by this firm is S This firm will shut down" or "continue"? The long run market price should be S according to the graph above

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 13P

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Calculate the amount of profit or loss made by this firm at the equilibrium output. State the type of profit.
Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market. Output Fixed AFC Variable AVC Total ATC MC Cost Cost cost 1 $50 50/1=50 $30 30/1=30 30+50=80 80/1=80 NA 2 $50 50/2=25 $50 50/2=25 50+50=100 100/2=50 (100-80)/(2-1)=20 3 $50 50/3=16.67 $80 80/3=26.67 50+80=130 130/3=43.33 (130-100)/(3-2)=30 4 $50 50/4=12.50 $120 120/4=30 50+120=170 170/4=42.50 (170-130)/(4-3)=40 5 $50 50/5=10 $170 170/5=34 50+170=220 220/5=44 (220-170)/(5-4) =50 What can you expect from an industry in perfect competition in the long run? That is, what will the price be? What quantity will be produced? What will be the relation between marginal cost, average cost, and price?
Price and cost (dollars) Use the following information to answer the next 4 questions: The graph below shows cost curves for a perfectly competitive firm. Suppose that the market price is $2.60. 2.60 1.60 1.50 0.80 0.70 0.60 500 800 1100 Output SMC ATC AVC Question A firm producing 800 units of output is earning the maximum amount of profit, $880. is earning the maximum amount of profit, $2,080. should instead produce 500 units of output in order to earn profits of $500. should instead produce 1100 units of output in order to earn profits of $1,100.
11/1//23 Use the graph below to answer the following question. 2 OF 20 QUESTIONS COMPLETED Price and cost 20 18 16 14 12 이 10 8 6 4 2 MC 2 4 6 8 10 12 14 16 18 20 < 03/20 ATC The graph shows the cost curves of a firm in a competitive industry. If the firm is making zero profit at its optimal level of production, the market price is $ Quantity SUBMIT ANSWER
Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
ATC 12 Q 1000 1500 1800 Use the graph above to answer the following questions. The graph represents a perfectly competitive firm where the market price is $4. AVC
Graph below represents the cost structure of an individual firm in a perfectly competitive market. ATC MC 50 40 e AVC 30 20 10 8 10 11 12 Quantity (per day) a. Write down the break-even and the shut-down points (both corresponding quantities and prices) for this firm on the table below. quantity (q) Price (P) Break-even Point Shut-down Point b. If the price in this market is $50, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output. Show your calculations If the price decreases to $25. C. i. Considering the short-run: would firm earn positive or negative profit in this new scenario? Would it continue operating or stop production? Explain your answer ii. Considering the long-run: would new firms enter to the market or would existing firms exit from it? What would happen to the market equilibrium?…
Pls don't use AI solution Consider a firm operating in a competitive market. The firm is producing 50 units of output, has an average total cost of production equal to 7 dirhams, and is earning 350 dirhams economic profit in the short run. What is the current market price?.
Use the following table and use your previous calculations: find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm. Total Output Total Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 $280 a. MC = ATC between 30 and 40 Quantity ATC at minimum between 20 and 40 Quantity b. MC = ATC at 30 Quantity ATC at minimum between 20 and 40 Quantity c. MC = ATC at 40 Quantity ATC at minimum between 20 and 40 Quantity d. MC = ATC between 30 and 40 Quantity ATC at minimum between30 and 40 Quantity e. MC = ATC between 20 and 40 Quantity ATC at minimum between 20 and 40 Quantity
only typed answer Assume a competitive firm faces a market price of $120, a cost curve of: C = 13q3 + 20q + 500, and a marginal cost of: MC = q2 +20. What is the firm's profit maximizing output level? ?? Units (round your answer to two decimal places) What is the firm's profit maximizing price? ??? (round to the nearest penny) What is the firm's profit? ??? (round to the nearest npenny) In the short-run, this firm should ?? produce or shut down??
Price and cost (dollars) Use the following information to answer the next 4 questions: The graph below shows cost curves for a perfectly competitive firm. Suppose that the market price is $2.60. 2.60 1.60 1.50 0.80 0.70 0.60 500 800 1100 Output SMC ATC AVC Question 5 (2 points) A firm producing 800 units of output is earning the maximum amount of profit, $880. is earning the maximum amount of profit, $2,080. should instead produce 500 units of output in order to earn profits of $500. should instead produce 1100 units of output in order to earn profits of $1,100.
Assignment Instructions: Find the Graphs for a Pure Competition Firm Do a Google Images and find the graphs for a perfectly competitive firm. graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.