Meow Chow sells cat food in a perfectly competitive market and has the following cost curves: Marginal Average Total Cost Variable Cost Average Quantity Cost 1 $0.20 $1.20 $0.20 $0.40 $0.80 $0.30 3. $0.60 $0.73 $0.40 4. $0.80 $0.75 $0.50 $1.00 $0.80 $0.60 If the market price of cat food is $0.63. then what quantity would maximize Meow Chow's profits? 0 2 0 3 04
Q: True or False? In his 1974 statement assigned as a reading, Arthur Burns argued that increases in…
A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…
Q: Commercial banks hold governments bonds of £71, reserves of £61, and currency of E48. The public…
A: Money Multiplier is the reciprocal of required reserves ratio on the other its also be determined by…
Q: You need to take one of the projects with the following cash flows: The cost of capital is 7%. Year…
A: As given two projects A and B with cost of capital is 7% and IRR of project A is 10% and IRR of…
Q: If a firm earns $375 billion in profits for the year and they retain $218 billion, what is the…
A: As given Profit = $375 billion Retain amount = $218 billion
Q: What forces may promote in the future a global economy, as opposed to localism?
A: Answer - Globalism:- Under the globalism where more free flow of information, Trade among the…
Q: Show the effects of an increase in the world interest rate on the market for loanable funds and the…
A: The market of loanable funds is base in the concept that the market interest rate is determined by…
Q: Environmental services are included in the National Systems of Accounts. True False
A: 1. Environmental services are included in the National Systems of Accounts. - TRUE
Q: Answer the following questions 1.a. Today many Central Banks around the World are thinking of…
A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…
Q: 4 A line on a graph that shows the maximum combinations of two goods which a consumer can purchase…
A: The economics as a study is based upon the idea that the resources which are present with the…
Q: Example 3 Investment proposals A and B have the net cash flows as Proposal End of years 1 vevend A…
A: Given:- End of year 0 1 2 3 4 A -10000 3000 3000 7000 6000 B -10000 6000 6000 3000 3000 i=…
Q: 0.02q + 5q - 38 Suppose the Sunglasses Hut Company has a profit function given by P(q) where q is…
A: Profit Function : P(q)=-0.02q2+5q-38 (a) For Marginal Profit, we differentiate the profit function…
Q: The figure shows the trade-off between consumption and quality of the environment. Which of the…
A: A consumption possibilities boundary represents the various amounts of two different things that a…
Q: What is the theory of containment and how did it drive US foreign policy and foreign interventions…
A: During the Cold War, the United States used a foreign policy tactic known as containment. According…
Q: 10 (Note: Point A is the midpoint of the demand curve) 8 Demand 2 3456 Pounds of cheese at At Point…
A: Marginal revenue is the additional revenue earned by selling one additional unit of output. It is…
Q: Potential economic value of mobile internet
A: The various sectors are developing and are contributing to economic growth and development. And the…
Q: Reyna is 15 years old, without a job and looking for work but she can't find a job due to the…
A: Frictional unemployment means unemployed because of a job switch or finding a job the first time so…
Q: f the monopolist cannot maintain the separation between the two markets, calculate the optimal…
A: The first three subparts are absolutely correct. Now We will solve part d We have a cost function:…
Q: Use Dornbusch’s overshooting model to discuss fully what will happen (in the short- and long-runs)…
A:
Q: Hello! I just want to ask for help whether the answers in the given pictures are correct. If it's…
A: Given; Cost function of both the firms; Firm 1; C1=cq1Firm 2; C2=cq2 Demand function; P=a-Q
Q: Which of the following statements is true in regards to the Chairperson of the Federal Reserve…
A: Answer: The chairperson of the Federal reserve system is appointed by the president for a four-year…
Q: Dennis is the International Representative of ABS-CBN and he is planning to partner with a foreign…
A: Payoff Summary Determine the dominance strategy. A. Determine ABS-strategy CBNs concerning GMA…
Q: 3. A supermarket chain buys loaves of bread from its supplier at $0.50 per loaf. The chain is…
A: The minimum acceptable rate of return (MARR) or hurdle rate in business and engineering economics is…
Q: 5. Donna and Nick both work at the same restaurant. Their wage used to be $12 an hour, but it was…
A:
Q: The figure shows the trade-off between consumption and quality of the environment. Which of the…
A: The varying amounts of two different things that society may utilize are represented by a…
Q: According to Joseph Harris (1993), which of the following shaped the way that the diaspora related…
A: Introduction It began with the European people in the 15th century. Joseph Harris gives more…
Q: Question 2 Consider the AD-AS model discussed during the lectures. Assume that the aggregate demand…
A: (a) AD curve slopes negative as we can see from the function because of the wealth impact on the…
Q: Commercial banks hold governments bonds of £71, reserves of £61, and currency of £48. The public…
A: As given data Reserve = £61 Currency of £48 by banks and £100 by public Deposits = £1000
Q: 23) When MR = MC and P= ATC for a monopolistically competitive firm, the firm is in A) short-run…
A: When a monopolistically competitive firm produces the level of output at which marginal cost (MC)…
Q: Bo's Donuts decides to have a sale to raise revenues. Bo lowers the price of each donut by 10%.…
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: Why does SMC curve cut AVC curve at the minimum point of AVC curve?
A: production cost is the monetary value incurred in production factors while producing the goods and…
Q: 2. Suppose the total cost function of a firm that produces hotdogs is C = 150q- 4q+ 2q where q is…
A: Given that Total cost = 150q - 4q2 +2q3 MC = 150 - 8q + 6q2
Q: Why is it important to study productivity? How do we determine productivity? Give an example of each…
A: Productivity is a proportion of economic execution that looks at how much labor and products are…
Q: From 1980 to 2010, China achieved a rapid increase in per capita Real GDP by: lowering its…
A: The extraordinary greater part of China's exports comprises made merchandise, of which electrical…
Q: | Fill in the blanks in the following table: Total Total Average fixed Average variable Average…
A: Cost of production means expenditure incurred on factor of production. Total cost involve varibale…
Q: Quantity per peried) Quantity (per period) Pan PaneD Quantity (per peried) Quantly (per perin…
A: When there is change in other factors and price remains constant, then the supply curve or demand…
Q: How can the tourism industry apply the recovery stages of crisis management to situations in Covid…
A: An economic recovery is the period after a recession in the business cycle.An economic recovery is…
Q: Refer to the above table. Assuming that opportunity costs are constant, the opportunity cost of…
A: Opportunity cost basically refers to the cost of best next foregone. It is the cost of something…
Q: Two duopolistic oil producers are faced with the total demand function of P = 180– Q and the…
A:
Q: Discuss the relationship of price to consumerperceptions of quality.
A: Customer perception is important in many areas, including customer understanding, communications and…
Q: Discuss the basic economic problem of scarcity. Be sure to include a definition of the term, how it…
A: Scarcity is a fundamental economic problem: Scarcity, or a lack of resources, is one of the most…
Q: he marginal product of the 14 th worker is 8 and the firm sells its output for $4 per unit. If labor…
A: MP of 14th worker = 8 Output sell = $4 per output
Q: Elasticity & Total Revenue Please fill-in the empty cells in the table below. Explain the…
A: Elasticity of demand is the ratio of %change in Qd(quantity demanded) and %change in P(price) of the…
Q: Consider the following table, which provides the price of beef and the price of all foods from 2014…
A: Any relative price is the price of the good in terms of price of other good. It is simply a ratio of…
Q: 1. The market price for tomatoes is $2/pound. Lynn is too small to influence the price of tomatoes.…
A: The labor market, sometimes known as the job market, is concerned with the supply and demand for…
Q: Suppose that the price of chocolate changes from PHP 40 to 42 and the quantity demanded for banana…
A: Given: Old Price of chocolates = PHP 40 New Price of chocolate = PHP 42 Old quantity of banana = 70…
Q: Question 6 With wars going on oversean, we are witnessing political instability abroad. If you are…
A: The economies around the globe are involved in international trade, where the entities in the…
Q: Give 5 examples of Capital Recovery problems with a solution
A: The phrase "capital recovery" is used by businesspeople in various contexts. It is essentially a…
Q: Question: summarize the case You are an attorney working for a large law firm. Anthony, Paul…
A: The goal of summarizing is to offer context for your argument/thesis by succinctly presenting the…
Q: Which one is an example of a positive externality? O noise from a construction sight O a student…
A: Externality is the effect due to the production activity of a manufacturing firm. For example,…
Q: If a central bank focuses on preventing either high inflation or deep recession by using low and…
A: Inflation: - Inflation is the phenomenon of an increase in the prices of goods and services in an…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?The market for apple pies in the city of Ectenia iscompetitive and has the following demand schedule:Price Quantity Demanded$1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0Each producer in the market has fixed costs of $9 andthe following marginal cost schedule:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost andaverage total cost for each quantity from 1 to6 pies.b. The price of a pie is now $11. How many pies aresold? How many pies does each producer make?How many producers are there? How much profitdoes each producer earn?c. Is the situation described in part (b) a long-runequilibrium? Why or why not?d. Suppose that in the long run there is free entryand exit. How much profit does each producerearn in the long-run equilibrium? What isthe market price? How many pies does eachproducer make? How many pies are sold inthe market? How many pie producers areoperating?The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE(Dollars pertracker) 100 90 70 60 50 40 20 10 0 0 MO ATC AVC 50 60 70 80 10 20 30 40 QUANTITY (Thousands of trackers per day) 90 100 Profit or Loss In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.
- Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60The market for apple pies in the city of Ectenia is competitive and has the followingdemand schedule:Price Quantity Demanded$ 1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0 ch producer in the market has fixed costs of $9 and the following marginal cost:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost and average total cost for 1 to 6 pies.b. The price of a pie is now $11. How many pies are sold? How many pies does eachproducer make? How many producers are there? How much profit does eachproducer earn?c. Is the situation described in part (b) a long-run equilibrium? Why or why not?d. Suppose that in the long run there is free entry and exit. How much profit does eachproducer earn in the long-run equilibrium? What is the market price? How many piesdoes each producer make? How many pies are sold in the market? How many pieproducers are operating?
- JYour business has the capacity to produce up to 5 units/week. The table & graph below show average cost (AC) for different weekly production levels. Your objective is to maximize profit each week. Average Cost 22 20 AC 18 1 20 14 2 15 12 3 12 10 1 2 4 4 13 Quantity 15 Your product sells in the market for $21/unit, and you can sell as many units at that price as you can bring to market. You know from your economics training that deciding how much to produce should rely on marginal concepts like marginal cost (MC). So, based on the AC table above, create a table that shows the MC of each unit. (Assume that there are no fixed costs, so total costs are zero if Q=0.) Based on MC for each unit, determine the profit-maximizing quantity to produce and sell. BRIEFLY explain your answer. (Your answer needs to be based on MC and being able to sell each unit for $21.) AC ($/unit)Price and cost (dollars per mug) NA a ∞ ONA a 16 0 5 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) $160; $280 The figure above shows Mollie's Mugs' costs producing mugs. The mug market is perfectly competitive. If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is per day and it incurs an economic loss of per day. $8; $14 MC $0; $120 ATC AVC $0; $6Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50+ 1/2q² Marginal Cost: MC = q where 9 is an individual firm's quantity produced. The market demand curve for this product is: Demand D = 160 - 4P where P is the price and is the total quantity of the good. Each firm's fixed cost is $ What is each firm's variable cost? 50+ 1/1/19 19² 1 29
- The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC АТС of Ear Buds ($) ($) 9.00 - 10 2.00 5.50 15 2.44 4.48 20 3.56 4.25 25 4.50 4.30 30 5.02 4.42 35 5.96 4.64 40 8.56 5.13 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$ d. Now assume the market price is $5.50 per pair, and Buddies produces the…Principles of Microeconomics Name: Homework #3 Prof. R. Harris DUE: Wednesday, April 17, 2019 at the beginning of class - NO EXCEPTIONS. Please remember to show all work and please be neat. Please staple this if you print it on your own. 1. Consider the following table of numbers, which represents demand and cost conditions for a com firm. petitive TR 600 0 1 2 $o $400 600 $400 $240 600 $430 $670 $960 $1,350 $1,840 $2,440 $3,120 $3,910 $4,800 600 600 600 600 600 600 5 6 7 600 600 9 10 (a) Fill in the missing values (b) Use the information in the chart to determine what level of output the firm should produce. Explain your reasoning.3 The figure below shows the cost curves for a profit-maxmizing firm in a periecny competitive narket. If the market price is $30 and if the firm is producing outpul. the amount of its total variable cost? Price TVC and cost TO ATCHO MC ATC AVC PAL $40.50 36.00 30.00 MR 22.00 7LEE 20.00 130 180 240 Quantity O S7,200 b. $6,480 C. $5,400 d. $3,960