Firm Profit, Loss, and Shut Down Based upon the graph, answer the following questions: 1) Will the firm incur an economic gain or economic loss? 2) What will the dollar amount of economic gain or economic loss be? 3) What will be the price and quantity where the firm will shut down? .мC 22 ATC 18 17.5 AVC 16 14 D= AR MR 79 11
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- DO >> # O ? O CENGAGE MINDTAP HW (Ch 13) Suppose the imaginary company of Roobek is a small, Cedar Rapids-based American apparel manufacturer specializing in athleisure. The following table presents the brand's total cost of production at several different quantities. Fill in the remaining cells of the following table. Quantity (Pairs) 0 240 L234 1 5 .6 Total Cost Marginal Cost (Dollars) (Dollars) T 120 210 270 315 380 475 630 MindTap - Cengage Learning AAAAA Fixed Cost Variable Cost (Dollars) (Dollars) I Average Variable Cost (Dollars per pair) On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points ftriangle symbol). Next, plot its average variable cost (AVC) curve using the purple points (diamond symbol). Finally, plot its marginal cost (MC) curve using the orange points (square symbol). (Hint: For ATC and AVC, plot the points on the integer; for example, the ATC of producing one pair of boots is $210, so you should start your ATC curve by…11. Madibaz is a company that produces t-shirts. The firm operates in a highly competitive, industry and each t-shirt is priced at R80. Madibaz's marketing manager wants to determine the possible total profit for the year given the price and costs of production. The total cost equation is TC=25000 +0.025Q where Q is the number of t-shirts per year. Calculate Madibaz's total profit.MCQ 21 If the firms operating in a perfectly competitive market are incurring losses, we can infer that: A I do not want to answer this question. the firms are not sufficiently large to achieve available economies of scale C the firms are currently operating at a rate of production at which MC > P D the firms are operating in the short run E the firms are subject to X-inefficiency in production the firms are currently operating at a rate of production below the profit-maximising level
- Please see how I've responded to the 2 questions below...Do you concur are am I off track here. What will the dollar amount of economic gain or economic loss be? The amount of loss would be Quantity*(ATC-Price)= 9*(17.5-16)=$13.5 What will be the price and quantity where the firm will shut down? Price where there is not able to recover average variable cost in the market. Shut down price is $12 and Quantity is 7 unitsOn the occasion of summer vacation, a student plans to open a milk tea shop. Before deciding to open a store, she wants to find out how profits fluctuate with fluctuations in selling prices and costs per unit of product. The selling price per cup of milk tea can range from VND 20,000.00 to VND 30,000.00 (the level of change is VND 1,000.00 each time) and the cost to make a cup of milk tea can range from VND 13,000.00 to VND 17,000.00 (the level of change is VND 500 each time). Knowing that the initial fixed cost is VND 24,000,000.00 and the number of cups of milk tea sold (Demand) depends on the selling price according to the formula: Demand = 24000 - 0.5 * Unit Price Use the two-dimensional sensitivity analysis to answer the following questions: a) What is the profit if the selling price is 23,000.00 VND and the cost per unit is 15,000.00 VND? b) How will profit change with each increase in cost of a product unit by VND 500.00 with a constant selling price of VND 25,000.00? c) What is…The short-run market demand and supply for Kente cloth are expressed as follows: Demand: ? = 40 − 0.25? Supply: ? = 5 + 0.05? Marginal cost: −20 +4? a) The short-run level of output is ___________ metres.[1] 40.00[2] 5.05[3] 35.30[4] 20.00[5] 7.71
- 20) - Google Chrome "mod/quiz/attempt.php?attempt%3=1579003&cmid%3812962&page%3D2 em (Academic 20- MC ATC AVC 16 4. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have th same cost curves and the price equals $16 per unit Select one: O a. over time, the price will fall as new firms enter the market. O b. over time, firms will leave this market. O c. the market is in its long-run equilibrium. O d. the firm is making zero economic profit. o search hp Price and cost (dollars per unit)The blue curve on the fallowing graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Goods 250 225 1guantity 25 "Demanded (inita) 200 Demand Price (Dolars per unitJ 175 125.00 E 150 125 100 75 Damand 50 10 15 20 25 30 35 40 45 s0 QUANTITY (Unta) On the graph input tool, change the number found in the Quantity Demanded feld to determine the prices that correspond to the production of D, 10, 20, 25, 30, 40, and S0 units of output Calculate the total revenue for each of these production leveis. Then, on the fallowing graph, use the green paints (triangie symbol) to plot the resuts. 3130 2017 Total Revenue 2504 2191 SATE 313 15 20 25 30 35 QUANTITY (Nurber of unita) 10 40 45 50…Suppose I estimate the following demand function for a watch I produce and sell: Q = 10000 - 4P +200PR Where: Q = quantity demanded in units P = price in dollars PR = number of YouTubers who positively review my watch We are currently operating at the following values: P = $400 PR = 10 In addition, suppose MC is $300. Given all this, please answer the following questions: 1. Derive the firm's current demand curve and calculate and interpret the firm's current price elasticity of demand. Be as precise as you can with your elasticity interpretation. 2. Given you answer in b, should the firm increase or decrease output in order to maximize profits (NOT revenues)? Explain and show your work on a well labeled graph. Hint: your graph should indicate the current output level as well as the profit maximizing output level. 3. What is the profit maximizing output and price? Show and explain all your work and match up your answer to your work in part b.
- Assume John sells milk at AUD2.50 per litre. Also, assume John sells each pizza at AUD 10.00. Calculate John's accounting profit and economic profit for the month of January.Why will firms in most markets be located at or close to the bottom of the long-run avenge cost me?Assume the firm can sell its product for $14 each. TR AVC TC АТС MC $2000 100 $1400 $600 $2600 $26.00 $6.00 200 $2800 $5.00 $3000 $15.00 300 $1920 $6.40 $3920 $9.20 400 $5600 3280 $8.20 $13.20 $13.60 Suppose the manager decided to sell at an output that maximized average profit. At a market price of $14, how many would he sell? would you do about this manager, and why? As the owner of this company, what