E. RoughlyMeRefer to the accompanying graph to answer the following two questions.PriceandCost$20.00$15.00$8.00MCATCAVCQuantity290 tohi oviliisqnoa.b.11.This firm's short-run supply curve is represented by theaverage total cost curve above $20.marginal cost (MC) curve above $15.C.MC curve above $8.d.MC curve above $20.e.average variable cost curve above $15.12. A firm would produce in the long run only if the market price isa. at or above $20.b. above $15.c. between $15 and $20.d. above $8.e. between $8 and $15

11. Answer:Firm's marginal cost curve above minimum average variable cost (AVC) is treated as firm…

Answered: E. Roughly Me Refer to the accompanying…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 4.7P

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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.
Suppose a resturant in a city making above normal profit in the short run. How will the market behave inthe long run? Can the said restuarant continue to make above normal profit in the long run too. explain using illustration
Figure 9-16 $/4 MC 6.70 6.00 ATC 4.90 AVC 4.00 = MR 2.80 2.60 12 14 If the price-taker fırm in Figure 9-16 9-16.png is currently producing 6 units, then to maximize profit in the short run, it should keep producing 6 units increase production to 12 units increase production to 14 units increase production to 8 units O shut down
A market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the profit-maximizing output quantityfor individual firms as the market leaves and thenreturns to long-run equilibrium.
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A market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the market quantity as the market leavesand then returns to long-run equilibrium
11. Explain the condition of equilibrium of a firm based on marginal cost and marginalrevenue. Need details explanation and make sure that no plagiarised answer
QUESTION 11 Figure: Cost curves for a firm 1Price 19 18 17 16 15 MC 13 12 ATC 1233 6is Quantity Refer to Figure. At the price of $10 per unit, the firm's Total Cost will be Note: If the graph intersections are little off, please take the closet point. O a. $35 O b.$50 C. $33 d. $30
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