In the given graph of a perfectly competitive firm, assume that the firm is profit maximizing and does not shut down in the short run. Price $485 $450 $300 $225 205 260 Quantity Calculate the firm's total cost. a) $48,100 b) $78,000 c) -$78,000 d) -$48,100 336 4 365 MC ATC AVC MR-P

In the given graph of a perfectly competitive firm, assume that the firm is profit maximizing and does not shut down in the short run. Price $485 $450 $300 $225 205 260 Quantity Calculate the firm's total cost. a) $48,100 b) $78,000 c) -$78,000 d) -$48,100 336 4 365 MC ATC AVC MR-P

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: that satisfies all the axioms Let X = R (K22). Assume that u represents except (strict convexity).3…

A: - A utility function is a concept used in economics and decision theory to represent an individual's…

Q: 9. Application: Elasticity and hotel rooms The following graph input tool shows the daily demand for…

A: Elasticity of demand is a measure of how sensitive the quantity demanded of a product or service is…

Q: What would a country profile for Columbia include, specifically looking at: Size, Climate,…

A: South America's economy encompasses farming, mineral extraction, and producing goods, and services.…

Q: Analyze how demand and supply achieve an efficient market equilibrium and calculate various…

A: Soft drink businesses have prospered enormously throughout the preceding century, with development,…

Q: The graph shows the market for education in a developing country. In this country all schools are…

A: The Externalities are side effects of economic activities that are not accounted for by the market…

Q: 9. Regulating a natural monopoly Consider the only electric company in a small town, which you can…

A: A monopoly market is a market structure in which a single firm or entity has exclusive control over…

Q: All of the following are ways in which developing countries normally accrue legal revenue for the…

A: Developing countries rely on various sources to generate legal revenue for their annual GDP. These…

Q: worked, she would have sold used golf balls online and made $20. Her opportunity cost of the movie…

A: Opportunity cost represents the potential benefits that an individual, investor, or business misses…

Q: Complete Table 3 the Aggregated Supply and Demand Data Price £/MWh 5 10 Volume [MWh] 0-15 15-35…

A: Market demand is the aggregate quantity demanded by all the consumers for a given price level…

Q: Which of the following is a not a valid reason why economists' consider the computation of a…

A: The midpoint formula for elasticity is used to calculate the percentage change in amount or price…

Q: Suppose that the market for cab rides in a community is initially in long-run equilibrium.…

A: Market price describes the existing or current price at which a good, service, or asset is bought…

Q: An equation of the form y=1 = 7000 (1.09)* provides an example of interest compounded annually. This…

A: Growth rate is the addend by which a quantity increases (or decreases) over time. For example,…

Q: The uncertainty surrounding the COVID-19 pandemic led firms to reduce their desired investment in…

A: Desired investment refers to the planned or intended level of investment expenditure that firms or…

Q: Mo's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina.…

A: A perfectly competitive market is a theoretical market body where all companies offer homogeneous…

Q: spending large new high speed railway line, would be most likely to A increase the budget deficit. B…

A: Government spending refers to the aggregate sum of money that a government distributes and uses to…

Q: What are some similarities between predictive policing and the social credit score

A: Predictive policing is a mathematical-based system that analyzes data to predict where and when…

Q: Information asymmetries The following diagram relates to a market with an information asymmetry. The…

A: Asymmetric information, also known as information asymmetry, refers to a situation in which one…

Q: The Unemployment Rate Go to the Bureau of Labor Statistics website (www.bls.gov). Click on…

A: The economic indicator that measures the proportion of the labor force that is jobless and actively…

Q: Scenario 1 Suppose the marginal product of labor in the economy is given by MPN-200-0.5N, while the…

A: The market clearing wage is the wage at which the supply of labour is equal to the demand for…

Q: A firm's supply curve is depicted in the following graph. Price (P) 200 a. 16 b. 25 C. 18 d. 0 150+…

A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…

Q: There are two shows on Netflix that Jeff can watch, Show 1 and Show 2. X₁ measures the number of…

A: The utility function refers to all those commodity bundles that derive the same amount of utility…

Q: A country's economy is described with the following parameters: Y=9000, G=1500, T=500,…

A: Y = 9000G = 1500T = 500C = 300 + (1/2)*(Y-T)I = 2500 - 30rr = 11NX = 1200-150Excangerate.…

Q: 2. Let U=U(x,y) be the utility function of the agent. x and y_represent the goods. Assume positive…

A: a. The agent's utility maximization problem involves making choices to maximize their satisfaction…

Q: Keiko bought a sofa on sale for $292. This price was 27% less than the original price. What was the…

A: The sales price refers to the amount of money for which a product or service is sold to customers.…

Q: An automobile company has two version of the same model car for sale, a two-door coupe and the…

A: Linear programming is a computational optimization approach employed for determining the best…

Q: After reading and watching videos on monopolistically competitive markets, write a 2-3 page paper…

A: Introduction:This paper examines Apple Inc., a prominent firm operating within a monopolistic…

Q: Your answer has to be more than five(5) sentences for each question based on researched facts and…

A: The Production Possibility Curve (PPC) represents the different combinations of goods and services…

Q: Discuss the social and economic development responsibilities of the South African government.…

A: The role of the government is a multifaceted and contentious matter. There is no universally…

Q: Price ($) SMC Demand PMC Quantity Refer to the graph above. What areas represents the government…

A: Arthur Pigou, a renowned economist, is credited with developing the notion of externalities. Arthur…

Q: The following graph shows demand and cost curves of the only cinema in a small county town. The…

A: Under a monopoly, a single seller faces the entire market demand on his own. Here, the seller…

Q: 7) Suppose a monopolist facing a linear demand curve has marginal cost MC and charges monopoly…

A: A market structure known as a monopoly involves a single seller who has extensive market power.…

Q: Use diagram to explain what will happen to the exchange rate between the rand and the US Dollar if…

A: The value of one currency in another currency's terms is known as the nominal exchange rate. It also…

Q: Jim Bob holds an engineering degree and is currently employed in an aerospace company in Dallas. Jim…

A: Interest payment refers to the return a person receives on their savings in their respective bank…

Q: Consider the following graph to answer the given question. PRICE (Dollars per pinckney) 28.00 20.00…

A: Tax revenue is the income that is gathered by governments through taxation. It is the essential…

Q: Use this for #8 and #9. Y Y3 Yz Y₁ O X₁ X2 X3 k X Suppose that the initial optimal point of…

A: When price of a good changes,…

Q: In reality, the reserve ratio for Canadian commercial banks is close to percent, which means that…

A: Certainly! Here's a simplified explanation of the deposit creation process in Canadian commercial…

Q: What is the future worth of this investment?

A: Future worth(FW) is the value of an asset at a specific date. It measures the nominal future sum of…

Q: How do you analyze how Publix oligopolies position themselves to be successful?

A: How do Winn-Dixie and other oligopolistic companies position themselves for success? Analyzing the…

Q: How do costs vary in response to changes in the quantity of a variable input? In your own words. 250…

A: In economics, the concept of costs and their relationship with the quantity of a variable input is…

Q: The annual output and prices of a three-good economy are shown in the table below.

A: Nominal GDP takes into account the current market prices of goods and services, including any price…

Q: How do you analyze how Publix oligopolies position themselves to be successful?

A: Publix is a prominent grocery store chain operating in the United States. As an oligopoly, it…

Q: In AD / A * S analysis, fiscal policy affects the economy through: A. Both the AS and AD curves.…

A: Fiscal policy refers to the use of government spending and taxation to influence the overall state…

Q: The market power the firms have, the competitive the market structure

A: Market power refers to the ability of the firm to influence the price of the product in the market.…

Q: The following mutually exclusive investment alternatives have been presented to you. The life of all…

A: It is given in the question that the IRR of alternative B, C, D, and E is 7.4%, 25.4%, 39%, and 9.2%…

Q: “I’m working as a restaurant consultant. My clients are Amy’s Diner and Joe’s Burger Stop. Both…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

Q: If an economy is producing inside the production possibilities curve, then A) There is full…

A: Production Possibility Curve or the Transformation Curve is a graphical representation that…

Q: Select an electronic manufacturing company of your choice in Malaysia and answer the following…

A: Intel Malaysia is a leading electronic manufacturing company in Malaysia that specializes in the…

Q: How do you analyze how Publix oligopolies position themselves to be successful?

A: How do Winn-Dixie and other oligopolistic companies position themselves for success? Analyzing the…

Q: give examples of given regulations below for me to understand it more. plases base in the…

A: Foreign exchange operations refer to the activities and transactions involving the exchange of one…

Q: The following table shows the initial aggregate supply and demand data for a country. Price Level…

A: The macroeconomic equilbrium in an economy is determined by the aggregate demand and aggregate…

Question

In the given graph of a perfectly competitive firm, assume that the firm is profit maximizing and
does not shut down in the short run.
Price
$485
$450
$300-
$225
205 260
c) -$78,000
d) -$48,100
Quantity
Calculate the firm's total cost.
a) $48,100
b) $78,000
336
365
MC
ATC
AVC
MR=P

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: To explain working for perfectly competitive firm in short run

VIEW

Step 2: To calculate firm's Total cost

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

Laura’s cleaning service is a profit-maximising, competitive firm. Laura cleans awhole house for $156. Her total cost each day is $1680, of which $480 is a fixed cost. She cleans 8 houses a day.(a)Should Laura shutdown her business in the short-run, assuming that she cannot recover her fixed cost?(b) Should she exit in the long-run?
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 shutdown
The table below shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. $0 (it breaks even) loss of $1,000 Quantity profit of $440 loss of $440 100 200 300 400 500 600 Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760 4,000 5,800 Variable Cost (dollars) $0 360 If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss? 560 960 1,760 3,000 4,800
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:
What is the total cost for this firm? (omit $ sign. Report cents as needed.) MC ATC D Quantity Price $14.00+ $12.00 $10.00 $8.00 0 1 1 I 250 300 MR
P (dollars) MC ATC AVC 4 2 Q (units) 300 600 900 Consider the following cost schedule for many firms in perfectly competitive market. If the market price is $4, then the firm should be to maximize profit and profit will O shut-down; negative O produce 600 units; negative O produce 600 units; positive O produce 600 units; zero 6
What is relationship between total revenue (TR) and cost (TC) if the price is greater than ATC (is TR greater, less, or equal to TC)? Does the firm make positive economic profit or loss?
ntQu102spring22 (1) - Protected View • Saved to this PC - O Search (Alt+Q) Faridatu Pafadnam References Mailings Review View Help t Defender Advanced Threat Protection and it hasn't detected any threats. If you need to edit this file, click enable editing, Enable Editing 3) Consider the following short-run cost curves for a profit-maximizing firm in a perfectly competitive industry. MC SRATC 4 SRAVC 1.5 1 100 200 300 400 Quantity FIGURE 1 a) Refer to Figure 1. If the current market price is $6, what is the profit-maximizing output for this firm? b) Refer to Figure 1. If the price is $6 and the firm is producing at its profit-maximizing output, then what are total costs for the firm? c) Refer to Figure 1. If the market price is $1, the firm will produce short run. units of output in the d) Refer to Figure 1. If the market price is $2, what the firm will do? Price $
Calculate average revenue when it is given that Total revenue is $70 and output is 5 units
Maria manages a bakery, that specializes in ciabatta bread, and has the following information on demand and costs: Ciabatta Bread Sold Price Per Hour (Q) (P) 0 $6.00 1 5.50 2 5.00 3 4.50 4 4.00 5 3.50 6 3.00 7 2.50 8 2.00 Total Cost (TC) $2.00 6.50 10.00 13.00 15.50 17.50 19.00 21.00 24.00 loaves of ciabatta bread per hour. (Enter your response as an integer.) a. To maximize profits, Maria should sell Maria should charge a price of $ Maria's maximum profit is $ (Enter your response rounded to two decimal places.) (Enter your response rounded to two decimal places.) (Enter your b. The marginal revenue when selling the profit-maximizing number of loaves of ciabatta bread is $ response rounded to two decimal places.) The marginal cost when selling the profit-maximizing number of loaves of ciabatta bread is $. (Enter your response rounded to two decimal places.)
1. Mariel runs an ice cream shop. Her short-run cost is given by 300 + is the number of ice cream cones she sells per day. + 3q where q 3000 (a) Find mathematical expressions for Mariel's marginal cost, average variable cost, and average total cost. (b) Sketch' Mariel's marginal cost, average variable cost, and average total cost. (c) Suppose the market price for ice cream cones is $3. How many ice cream cones will Mariel supply? What will her profits be? Identify your answers on the diagram and then compute the values mathematically. (d) Find the minimum market price such that Mariel will stay in business in the short-run, both on your diagram and mathematically. (e) Assume that Mariel can only run an ice cream shop of this size and in the long run must decide whether to operate or not. (In other words, assume that Mariel's LRAC curve is her short-run average total cost curve.) Identify the minimum market price such that Mariel will stay in business in the long-run on your diagram.…
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??