Given the following profit-loss schedule in the short run, how many units should a firm produce? Quantity Marginal Revenue Total Cost Marginal Cost Average Total Cost 0 2 15 - - 1 2 19.75 4.75 19.75 2 2 23.5 3.75 11.75 3 2 26.5 3 8.83 4 2 29 2.5 7.25 5 2 31 2 6.20 6 2 32.5 1.5 5.42 7 2 33.75 1.25 4.82 8 2 35.25 1.5 4.41 9 2 37.25 2 4.14 10 2 40 2.75 4.00 11 2 43.25 3.25 3.93
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Given the following
Quantity Marginal Revenue Total Cost Marginal Cost
0 2 15 - -
1 2 19.75 4.75 19.75
2 2 23.5 3.75 11.75
3 2 26.5 3 8.83
4 2 29 2.5 7.25
5 2 31 2 6.20
6 2 32.5 1.5 5.42
7 2 33.75 1.25 4.82
8 2 35.25 1.5 4.41
9 2 37.25 2 4.14
10 2 40 2.75 4.00
11 2 43.25 3.25 3.93
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- $150 $145 $140 MC $135 $130 $125 $120 $115 ATC $110 $105 $100 $95 $90 $85 $80 AVC $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 0 1 2 3 5 6 Quantity Produced 7 8 9 10 11 The graph above shows the cost functions for a perfectly competitive profit maximizing firm. If the market price of the product is $70 per unit, the firm will produce units, will cover make an economic profit of dollars. dollars of its fixed cost, and willP 20 MC АТС 17 d 14 9 6. 40 50 55 80 The marginal revenue (MR) the individual producer receives when it maximizes its profit is $ (numeric) The marginal cost (MC) of the 40th unit produced by the individual firm is $ (numeric) The average total cost (ATC) of the 40th unit produced by the individual producer is $ (numeric)Problems & Applications (Ch 13) In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Marginal Cost (Dollars) Total Cost Total Revenue Marginal Revenue Profit Quantity (Dollars) (Dollars) (Dollars) (Dollars) A-Z 7 10 14 13 21 4 17 28 24 35 32 42 7. 42 49 In order to maximize profit, how many units should the firm produce? Check all that apply. O 3 O 4 O 5 O 6 6:45 PM a Desktop 62°F 12/5/2021 arch hp MAAAAA
- Total Revenue Total C ost Proit/Loss/ Price( P) Quantity (TR) (TC) Break Even $3 5. 2 9. 3 8. 4 11 5. 15 6. 21 30 8. 42 6. 60 10 85 Yummy Cupcakes is a purely competitive firm. The firm's costs are shown in the table above. The market price is $5 (USE THIS TO FILL IN THE PRICE COLUMN) When Yummy Cupcakes produces 1 cupcakel Q-1).the firm : O breaks even incurs a loss O earns profits will shutdownTotal Product 1 2 3 4 5 6 7 8 9 10 Average Fixed Cost $ 150.00 75.00 50.00 37.50 30.00 25.00 21.43 18.75 16.67 15.00 Multiple Choice The accompanying table gives cost data for a firm that is selling in a purely competitive market. If the market price for this firm's product is $68.10, it will produce 8 units at an economic profit of zero. 6 units at a loss of $90. Average Variable Cost $ 25.00 23.00 20.00 21.00 23.00 25.00 28.00 33.00 39.00 48.00 9 units at an economic profit of $281.97. 8 units at an economic profit of $130.72. Multiple Choice 6 units at a loss of $150. 6 units at a loss of $90. The accompanying table gives cost data for a firm that is selling in a purely competitive market. If the market price for this firm's product is $35, it will produce Average Total Cost $ 175.00 98.00 70.00 58.50 53.00 50.00 49.43 51.76 55.67 63.00 9 units at an economic profit of $281.97. Marginal Cost $25.00 21.00 14.00 24.00 31.00 35.00 46.01 68.07 86.95 128.97 8 units at an economic profit…The following are the cost information of a typical ice tea company in an industry with 100 firms. Output (ice tea per hour) Marginal Cost ($ per ice tea) Average Variable Cost ($ per ice tea) Average Total Cost ($ per ice tea) 3 2.50 4.00 7.33 4 2.20 3.53 6.03 5 1.90 3.24 5.24 6 2.00 3.00 4.67 7 2.91 2.91 4.34 8 4.25 3.00 4.25 9 8.00 3.33 4.44 a) At the price of $2.20 per ice tea, what is the firm’s profit maximizing level of output? Why is this the profit maximizing level of output for the firm? b) If the market price is $8 per ice tea and the firm is producing six (6) ice tea per hour, is the firm maximizing profit or not? Why or why not? If the firm is not maximizing profit, what should it do to maximize profit? c) At the price of $8 per ice tea, what is the firm’s profit-maximizing level of output? Why is this the profit maximizing level of output? What is the firm’s economic profit at…
- The following are the cost information of a typical ice tea company in an industry with 100 firms. Output (ice tea per hour) Marginal Cost ($ per ice tea) Average Variable Cost ($ per ice tea) Average Total Cost ($ per ice tea) 3 2.50 4.00 7.33 4 2.20 3.53 6.03 5 1.90 3.24 5.24 6 2.00 3.00 4.67 7 2.91 2.91 4.34 8 4.25 3.00 4.25 9 8.00 3.33 4.44 d) Is the price $8 a short-run or long-run equilibrium price for the industry? If the price is not a long run equilibrium price, what adjustments are likely to happen in the market for it to reach long run equilibrium. e) What price must prevail in the market for a typical firm to operate in the short run? At this price, how many ice tea will be supplied by all firms in the market?The table gives some of the costs of the Delicious Pie Company. The marginal cost per pie of increasing the output of pies from 100 to 200 is Total variable cost (dollars) Output (pies) 0 100 200 300 400 $8.00 $600 $6.00 $5.00 0 400 1,000 1,800 2,800 Total cost (dollars) 300 700 1300 2100 3100 ?$ per unit $40 $20 2 4 6 8 10 MC 12 ATC MR AVC Output (q) The graph above shows a firm's Marginal Revenue (MR), Marginal Cost (MC), Average Total Cost (ATC) and Average Variable Cost (AVC). This firm is a profit-maximizing price taker. Find the firm's short run shutdown price. (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.)
- Q3_A The Break even Analysis of firm show that: BEP = 1000 FC = 10,000 $ P = 3% of the quantity of zero profit. A) The point of intersection of TR with TC is at the cost point of $ 45,000 for TR. B) At the point where (zero units sold) TC equals $ 5,000 C) the start of the line drawing for TR is at cost point $ 0 D) the value UVC for the product in question equals $ 10) E)the FC value in a point for BFP equals $ 10,000 For the given choices, showing which one is True and which one is False, correcting the False ones and given a reasonable reason for the True. Write your answer below:The graph presents the costs and revenue for a purely Cost and revenue competitive firm, where the market price is equal to $400 per unit of output. Use this information to determine the profit-maximizing output and profit for this firm. $800 (13,800) 750 700 Marginal cost 650 What is the profit-maximizing output of this purely 600 Average total cost (12,600) competitive firm? Round the answer to the nearest 550 whole number. 500 (4,500) (6,450) (12,450), 450 (10,400) 400 Marginal revenue (9,350) 350 profit maximizing output = units of output 300 (6,250) 250 Average variable cost (4,200) 200 What is the profit for the purely competitive firm that 150 |(1,150) produces at the output level in the first question. Round the 100 answer to the nearest whole number. 50 1 2 3 4 7 8 9 10 11 12 13 14 15 Units of output profit = $|Burger Prince is considering opening a new restaurant in Colton, Loma Linda, or Upland. The following fixed and variable cost data have been assembled. Variable Costs per customer Fixed Cost per year Labor Location Colton $200,000 $0.40 Loma Linda $180,000 $0.75 Upland $170,000 $1.00 Over what range of annual demand is each facility going to have a competitive advantage? 3. Material $0.20 $0.25 $1.00 Overhead $0.40 $0.75 $1.00