Perfect competition is an economic term that refers to a theoretical market structure in which all suppliers are equal and overall supply and demand are in equilibrium. Figure 23. 1 shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. Figure 23.1 Cost, pnce (Rand) B. R800 C. R960 20 D. R720 O 60 80 100 Output per day MC AC What is the total revenue of the profit-maximising firm in the short run? A. R2 000 Price AVC
Q: One reason the aggregate demand curve is downward sloping is that a lower price level
A: Introduction Aggregate demand curve The aggregate demand curve (AD) is the sum of consumption…
Q: QA-7-.5P Qa-10-P Qc=18-3P Make a price quantity chart for each consumer. Then add a column showing…
A: In perfect market competition the optimum quantity is produced where the demand curve and the supply…
Q: 3. The total (abatement) cost for cutting down on CO2 by R is C(R) = 7R² + 10R. The total benefit of…
A: Externalities are the third person thing. It is usually the harm/benefits caused by the producer…
Q: Potatoes are farmed using labor and machinery (farm equipment). They're often eaten with butter or…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: What happens to the graph of a budget constraint if there is a 10% increase in prices, and wages…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: Which of the following is considered to be loanable funds from financial institutions? CEA
A: The loanable funds concept is a theory of market interest rates in the field of economics. With this…
Q: INSTRUCTION: Give one example of a technopreneur, describe his/her business, and then explain what…
A: According to their areas of interest, different sorts of entrepreneurs operate their firms in…
Q: Suppose the goods-market in an open economy can be represented by the following equations: Y = a +…
A: In the aggregate expenditure model, equilibrium occurs where aggregate expenditure is equal to…
Q: O U, TZ OZ, SZ A OT, TU B PWorld = R U, SU S, SZ F LL K 0 G O L M V W E S T U Z This country was…
A: An import quota is an upper limit on countries' imports. So when import quota is enforced then the…
Q: Paige runs a ferret farm in Athens, Georgia. Paige pays $1500 a week for equipment and $800 a week…
A: Total cost is a sum of fixed cost and variable cost. Variable cost here is the labor cost and fixed…
Q: 1
A: We know that In the long run, competitive firms will operate at a level where marginal cost cuts the…
Q: Ouroboros’ total cost (TC) as a function of its production level q is given by the equation below:…
A: Given Total cost TC(q)=2q2-12000q+30,000,000 ...... (1) “Since you have posted a…
Q: Luke used regression analysis to fit quadratic relations to monthly revenue, TR, and total cost, TC,…
A: Total cost is the total consumption caused on the elements and non-figure inputs the development of…
Q: The quantity that maximise total surplus (the sum of consumer and producer surplus) is__? Because…
A:
Q: a. b. C. Use the linear demand curve shown below to answer the following questions. 750 Price…
A: Point elasticity of demand calculate or represent the elasticity of demand at a particular point or…
Q: For a consumer with a demand function q = 10 - 2pz, find the answers to the following. a. Consumer…
A: In the mentioned question we have been asked about the consumer surplus at p0 = 1 and p^ = 4.…
Q: The Phillips curve describes the relationship between OA. the money supply and interest rates. OB.…
A: Phillips curve states that there is a trade-off between inflation rate and unemployment rate in…
Q: Think of a person who likes having impact on their social networks. To do so, they always follow the…
A: Marginal returns refer to an increase in the total returns.
Q: TRUE OR FALSE? An improvement in the technology will reduce the supply of goods while an increase…
A: FACTORS THAT SHIFT SUPPLY CURVE Favourable natural conditions Fall or rise in input cost (cost of…
Q: 2. JetBlue and Delta are the only two major airlines with regularly scheduled service between New…
A: In the field of game theory, the phrase "Nash Equilibrium" refers to a situation in which the ideal…
Q: Case Scenario/ Real World is television production company that manufactures movies. The market…
A: Demand equation: x = 25000-50p Cost equation: C(x) = 18000+500x where: x = quantity demanded of…
Q: What is a weakness of using LCOE as a benchmark for comparing generation methods? a. It does not…
A: Present value is the idea that expresses an amount of cash today is worth more than that equivalent…
Q: . Explain briefly one the objective of national income accounting and balance of payment.
A:
Q: Glen and Ben both drink coffee and coke every day. Glen likes coffee a lot more than Ben and Ben…
A: A utility function states the amount of satisfaction gained by the consumer as a function of a…
Q: QUESTION 4 Considering the following model: Ct = ao+a1 Yt + a₂Ct-1+ut It = Bo + B1R₁ + B2lt-1 + 121…
A: We have Ct=α0+α1Yt+α2Ct-1+u1t ..... (1)It =β0+β1Rt+β2It-1+u2t…
Q: The fixed cost at Sonny Motors is $5765764 annually. The main product has revenue of $84 per unit…
A: Given fixed cost = 5,765,764 P Revenue per unit = 84 $ Variable cost per unit = 43 Units sold =…
Q: The Mamas and the Papas, a monopolist, faces a constant marginal cost of $3 of producing cashews. If…
A: Given The marginal cost of monopolist MC=$3 The elasticity of demand: Ed=-4 We have to find the…
Q: F4
A: Entrepreneur is a person who plays significant role in changing economic and business transactions…
Q: Which of the following assertions regarding social efficiency and social welfare is correct? a. They…
A: In economics, terms like efficiency and welfare are used to analyze the nature of activities and…
Q: According to the graph below, the firm doesn't make a profit when the quantity exceeds what value?…
A: Profit is the difference between the total revenue and and total cost.
Q: Which of the following is an expansionary fiscal policy? increase in taxes only both increase in…
A: Usually in the simple language we can say that the expansionary fiscal policy is usually known to be…
Q: The effect of the changes in income and prices?
A:
Q: Consider a duopoly where the market demand is described by the equation: P150-Q. The marginal cost…
A: Market demand curve: P = 150 - Q Marginal Cost of each firm: MC = 60 Hence the Total Cost becomes:…
Q: Which of the following would not cause a decrease in demand for potato chips? a decrease in income…
A: Demand curve Shows an inverse relationship between price and quantity demanded. It slopes downward…
Q: Suppose that you own a used car dealership. You want to sell a 2005 Honda Civic LX. You know that…
A: The greatest quantity of money a customer is inclined or willing to spend on a product or service is…
Q: Pulsar Plc is considering of exporting its products to the Swedish market. It expects to earn an…
A: Economic profit = Total revenue - Explicit costs - Implicit costs
Q: The maintenance cost for a machine after one year is expected to be P600. The cost will increase by…
A: Given cashflow in 1st year = 600 P Increasing constant cost per year = 72 time = 13 years interest…
Q: If the marginal cost is above the average cost at a certain level of production and the firm decides…
A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…
Q: A producer has the possibility of discriminating between the domestic and foreign market for a…
A: Given Domestic demand function: Q1=20-0.2P1 ... (1.1) Foreign demand function:…
Q: Give three instances when RFID might be preferable over bar codes.
A: Radio Frequency-Identification innovation (RFID): It includes a tag fastened to an item that…
Q: Consider a firm with the following cost function C(q)= 30+5g. Currently the firm is producing 100…
A: Formula to calculate Marginal Cost:- MC=dTCdQ…
Q: Provide a brief description of Globalization and indicate three (3) ways that Globalization is…
A: A competitive advantage is when a business can create goods or services more quickly,…
Q: X Segment has excess capacity. It produces product X at total product cost of 100 (includes 20 FC).…
A: Given information Excess capacity occurs when a firm is producing before the long-run optimum level.…
Q: Think of a consumer who has a 200 000 euros income and can spend them on an opera, paying a price of…
A: Given, Consumer's income = 200000 Price of an opera ticket = 150 Price of a rural tour = 500
Q: 5. Illustrate in appropriate diagram (change in demand or change in supply) the impact on the good…
A: Demand and Supply of goods and services depend on a lot of things. Demand depends on the price,…
Q: Determination of Equilibrium Level of Employment by The aggregate demand price and aggregate supply…
A:
Q: 2. Show that the price elasticity of demand is constant for demand functions of the form P = A Q"…
A: Introduction Price Elasticity of demand When the elasticity value is greater than 1.0, this…
Q: Which fiscal policy expects the economy to self-adjust? O balanced budget O counter-cyclical O…
A: Fiscal Policy is the policy in which taxes and government spending is used for influencing economic…
Q: Think of a consumer who has a 200 000 euros income and can spend them on an opera, paying a price of…
A: Budget Line The budget line is a diagrammatic display of every combination of the two commodities…
Q: Based on Gross Domestic Product, discuss how increasing the labour force participation rate of…
A: Gross domestic product refers to the total amount of goods and services that are produced in an…
Step by step
Solved in 3 steps
- 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.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.Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $60.00 $45.00 $105.00 $45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $56.00 (i) Will this firm produce in the short run? (Click to select) No Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? (Click to select) Not applicable Loss-minimizing…
- PRODUCTION| 2 8 10 12 14 LEVEL MARKET 3 3 3 3 PRICE ТОTAL INCOME TOTAL FIXED 14 14 14 14 14 14 14 COST ТОTAL 4.5 5.5 6.7 8.2 10 13.25 VARIABLE 25 COST TOTAL COST TОTAL BENEFIT MARGINAL 3 3 3 3 INCOME AVERAGE TOTAL COST Develop the following numerical example of perfect competition, which should add the procedure for calculating the missing costs, income, and profit. Considering the following data: a) Indicate at what level of production the MC is equal to the price, so that the company is perfectly competitive in the short term. 3. 3.Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $ 60.00 $ 45.00 $ 105.00 $ 45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 a. At a product price of $56.00 (i) Will this firm produce in the short run? yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? profit- maximizing output = 9 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 16 b. At a product price of $41.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the…onsider the table below and assume the market price is $35 per unit. Totalproduct Totalfixed cost TotalVariablecost 0 150 0 1 150 50 2 150 75 3 150 112.4 4 150 150 5 150 200 6 150 270 7 150 360 8 150 475 9 150 620 10 150 800 Now assume there are 600 identical firms in this industry, that is, there are 600 firms, each of which has the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows: Price Quantitydemanded $20 6,800 30 5,975 45 5,500 60 5,125 75 4,500 95 4,200 120 3,600 150 2,400 In equilibrium each firm will realize: Multiple Choice an economic profit of $155. a loss of $45. an economic profit of $35. a loss of $135.
- A firm on competitive market has the data about cost as below Q,0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 TC 100160208254290320340355370390430475525580640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. c. Determine the supply curve of this firm 3. A firm on competitive market has the data about cost as below Q 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TC 100 160 208 254 290 320 340 355 370 390 430 475 525 580 640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. C. Determine the supply curve of this firm1) Briefly explain how the total revenue for a profit-seeking film is determined 2)Briefly explain what is meant by the term "fixed costs" and provide three examples of same. What determines a firm's level of fixed costs? 3)Contrast the rold of fixed costs and variable costs in economic decisions about future prodiction 4)Briefly compare and contrast the perceived demand curve for a monopolitically competitive firm and a perfectly competitive firm. 5)Briefly explain what quantity a profit maximizing monopolistic competitor will seek. Why not this type of competitive frim is productively efficient?The following graph shows the marginal cost curve for Oiram-46, a competitive firm producing magic hats. Suppose that currently, the prevailing market price is $1.50 per magic hat. On the following graph, use the blue points (circle symbol) to plot Oiram-46's price line. Then use the grey points (star symbol) to indicate the profit maximizing quantity of output produced by Oiram-46. TOTAL COST (Dollars) he 12 11 10 a 8 N 3 2 1 0 + Oiram-46 7 0 MC + H 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit-maximizing quantity is Demand Profit maximizing quantity ? magic hats, average revenue is $ and marginal revenue is
- Frances sells pencils in the perfectly competitive pencil market. Her output per day and her costs are as follows: Output per Day Total Cost Variable Cost АТС AVC MC $1.00 1 2.50 1.50 2.50 1.50 1.5 3.50 2.50 1.75 1.25 1 3 4.20 3.20 1.40 1.067 0.7 4 4.50 3.50 1.125 0.875 0.3 5.20 4.20 1.04 0.84 0.7 6.80 5.80 1.33 0.97 1.6 7 8.70 7.70 1.24 1.1 1.9 8 10.70 9.70 1.34 1.21 If the current equilibrium price in the pencil market is $1, how many pencils will Frances produce, what price will she charge, and how much profit (or loss) will she make?Assume a purely competitive increasing cost industry is intislly long eun equilibrium producing 10 million units atca market price of $5.00. Supoose that increaae in consumer demand occurs. After all economic adjustments have been completed which output and price combination is most likely to occur ? 9.5 units at a price of $4.50 11 units at a price of $4.75 9 units at a price of $5.25 12 units at a price of $5.50The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm. Round your answers to 2 decimal places. Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 / / / $ 100 1 $ $ $ 130 2 150 3 180 4 220 5 270 6 330 7 440 a. Complete above the table. b. What is the break-even price? Break-even price: $ c. What is the shutdown price? Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; (Click to select) Loss Profit : $ e. If the market price of the product is $110, what quantity will Marshall’s Meats produce? What will be its profit or loss? Quantity: ; (Click to select) profit loss : $