If the price is equal to 14, which firm(s) will continue to operate even if it/they is/are losing? FIRMI O 1 2 3 4 5 Q 1 2 FIRM II 0 3 AFC AVC 4 15 3 15 7.5 5 None of these firms. 5 3 AFC 15 7.5 3.75 10.25 14 5 3.75 8 co 3 FIRM III 13 AC 3 18 8.5 12.5 7 13 16 18 MC AVC AC MC 16 14 15.25 19 17 24. 14 12.33 17.3 20 24 17.80 20.8 28
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Which firm/s will continue to operate even if they are losing
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- In which market structure does Johnson Electronics (Pty) Ltd operate? Provide areason for your answer and what level of output maximizes the firm’s profit? Provide the reason for youranswer output price total revenue average cost total cost margnial cost profit/ loss 10 10.00 100 20.80 208 0 -108 20 10.00 200 12.40 248 4.00 -48 30 10.00 300 9.90 297 5.00 3 40 10.00 400 9.00 360 6.20 40 50 10.00 500 8.80 440 8.00 60 60 10.00 600 9.00 540 10.00 60The chart below gives a firm's total cost of producing different levels of output. The profit maximizing level of output for this firm is Output 0123456 02 0 3 04 O 5 Total Cost $13 20 25 28 32 43 60 O Cannot be determined from the information givenonsider 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.
- The oil drilling industry includes a small number of firms all producing about the same product. What price should the North Dakota Shale Oil Co charge for its oil? North Dakota Shale Oil Co p, cost MC AC AVC P2 P3 P4 y MR O P3 O P2 O P4 O P1If the market price is $17 and the firm produces 4 units of output, then its profit would be TFC TVC TC MC AVC ATC $50 $0 $50 -- 1 50 20 70 20 20 70 2 50 30 80 10 15 40 3 50 45 95 15 15 31.67 4 50 62 112 17 15.50 28 5 50 90 140 28 18 28 50 132 182 42 22 30.33 7 50 186 236 54 26.57 33.71 O a. -50 O b. 18 O c. -44 O d. 0 What does monopolistic competition have in common with monopoly? a. the ability to collude with respect to price O b. barriers to entry O c. a downward-sloping demand curve O d. a large number of firmsCAUTION: MANY PRODUCTS MAY NOT BE EFFECTIVE ON ROADRUNNERS The table below gives data on costs for the Acme Mail-Order Company, a firm in a competitive market. Among their customers is a certain hungry coyote. Q FC VC TC MC AVC ATC 60 60 -- 1 60 16 76 16 16 76 2 60 28 88 12 14 44 3 60 38 98 10 12.7 32.7 4 60 46 106 8 11.5 26.5 60 52 112 10.4 22.4 60 60 120 8 10 20 7 60 70 130 10 10 18.6 8 60 82 142 12 10.25 17.75 60 95 155 13 10.6 17.2 10 60 110 170 15 11 17 11 60 127 187 17 11.5 17 12 60 147 207 20 12.25 17.25 a. Determine the priceand quantity for Acme Company at -the shutdown point -the break-even point b. If the price is $20, what happens in the industry in the long run, assuming all firms have costs identical to the Acme Company's. c. Repeat the analysis from part b, but for a price of $12. LO
- Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. AFC (P) AVC (P) Output (in packs) 0 1 2 3 4 5 6 7 8 9 10 60.00 30.00 20.00 15.00 12.00 10.00 8.57 7.50 6.67 6.00 45.00 42.50 40.00 37.50 37.00 37.50 38.57 40.63 43.33 46.50 ATC (P) 105.00 72.50 60.00 52.50 49.00 47.50 47.14 48.13 50.00 52.50 MC (P) 45.00 40.00 35.00 30.00 35.00 40.00 45.00 55.00 65.00 75.00 A. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run? Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack? B. Assuming that the product price is P42 per pack, answer the same questions in letter A. C. Because of increasing sellers of masks in the market, the product's price further decreased to P32 per pack. Again, answer the same questions in letter A. D.…Suppose there are two firms, and they are able to coordinate with each other. What are the expected profits for each firm if they successfully collude and split the market output equally? The answer has to be a number louin which only to trim 1 and 2 stud producer for de her dece how rare pers to pan and bring to town The Tes cenere fr ( Price Test Revenue land Total Pro 73 ༡ བྷསྶཀྐཏྟཊྛགྒཊྛངྒཱཊྛཱརཱབྷིཛྫོ 120 0 110 100 2000 93 2700 33 5000 71 2000 53 3840 50 3500 31 2010 130 20 2000 110 90 1133 130 4 ሰFigure A Competitive Firm1.2 MC %24 ATC AVC Given P1 =$5.00 P2 =$6.00 P3 = $7.00 Q1 = 110.00 P3 P2 P1 MR Quantity Q1 Refer to "Figure A Competitive Firm1.2", this typical firm earns a profit (or loss) in the amount of about O minus $200.00 O minus $230.00 O minus $210.00 O minus $220.00
- Consider the table of firm costs and revenue below. It may be useful to calculate the missing values. QMCMR TC TR 1 3 5 13 5 2 2 5 15 10 3 3 5 4 5 5 5 8 5 6 12 5 If the firm chooses Q to maximize short-run profit, what will the profit be? IT = -3 O T = 3 IT = -6 IT = 6You continue to own and operate Rockit Asphalting services but areno longer the only supplier. The monopoly profits you were earning attractedentry and the collusive agreement you offered to your new competitors did notsucceed. Your business is still the dominant firm but now there exists acompetitive fringe.The competitive fringe produces with total cost:Cf = 3qf.So marginal cost equals 3 which also represents the fringe supply curve. Therealso been some changes to the costs of your firm. The costs for your firm arenow:Cd = 2Qd.And market demand is now:p = 10 − Q.Finally, note that the change in total costs for your firm has also produced acapacity constraint. Your firm cannot expand beyond ?? ≤ 5.a) Given these changes to the market structure that your supply, computeyour firm’s output and profits.b) Suppose that you have a strategy to gain market share by raising thecosts of your rivals (the fringe producers.) This strategy allows you toincrease the marginal cost of the fringe firms…$30.00 $25.00 i of $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: a. $1,000 b. $2,000 с. $500 d. $2,500 21