Let's consider a company that produces a good Z, in a perfectly competitive market. The expression for the total cost of this undertaking is as follows: C( q) = 72 + 2q2 Graph the marginal cost, average cost, and average variable cost curves of this company. Your chart should be accurate. Also include the break- even point (SR) and closing point (SF).
Q: e. A decrease in the price of electricity from $5.75 to $5.25 per kilowatt hour causes an increase…
A: The objective of the question is to calculate the cross-price elasticity of demand for electric cars…
Q: For the utility function U = Qx^0.84Qy^(1-0.84) find the trade-off rate between good X and good Y at…
A: Marginal rate of substitution (MRS) is the economic theory that determines the rate at which a…
Q: Y Score on Economics Final Exam 100 75 50 25 A 0 5 10 Hours of Study How would you describe the…
A: The linear relationship shows a one-to-one relationship between two variables. In this case, the two…
Q: The figure below shows the cost and revenue curves for a monopolist. The maximum profit earned by…
A: The monopolist is only firm in the market. It has market power to fix the price. There is no…
Q: During 2009, the Federal Reserve was easing monetary policy in an attempt to boost the economy. That…
A: GDP basically refers to the total monetary value of all final goods and services that a nation…
Q: If total liabilities decreased by $4880, then O stockholders' equity must have decreased by $4880.…
A: The accounting equation is given as:This shows that for every balance sheet of any business, two…
Q: Use your knowledge of the price mechanism to explain why strawberries are cheaper in the summer in…
A: The pricing mechanism, a fundamental concept in economics, is dependent on how buyers and sellers…
Q: 1. Four key markets and the circular flow of income The circular-flow diagram is a visual model of…
A: The circular flow of income model is a simplified visual representation of how money, goods, and…
Q: follow. Price per unit 00 MC 100 Units of output Figure AVC d = MR q
A: In a competitive market, numerous firms offer identical products, making each firm a price taker. To…
Q: Suppose you lend $2,500 at 11.5% for 3 years. If the interest is compounded annually, how much…
A: When interest on a principal amount is compounded annually, it means the interest is calculated and…
Q: Consider the following Indirect Utility Function UPM derived from Linear Expenditure System (LES):…
A: Marshallian demand function depicts the quantity demand for a commodity as the function of the own…
Q: A consumer has the indifference map shown below. The market prices of X and Y are $20 and $12,…
A: Utility maximization is a strategic scheme whereby individuals and companies seek to achieve the…
Q: The inverse supply function for coal is PS = 2 + QS. The inverse demand function for coal is PD = 20…
A: Consumer surplus is an economic concept that represents the difference between what consumers are…
Q: An experiment is conducted on which chocolate tastes better. Participants are given cups labeled…
A: In economics, research refers to the systematic and scientific investigation of economic phenomena…
Q: In the process of creative destruction, what gets destroyed? • Firms • Workers •…
A: Creative destruction is a concept introduced by the Austrian economist Joseph Schumpeter in the…
Q: Suppose both the demand for olives and the supply of olives decline by equal amounts over some time…
A: The demand curve shows an inverse relationship between price and quantity. The increase in price…
Q: Indicate what components of GDP (if any) each of the following transactions would affect. Check all…
A: GDP i.e Gross Domestic Product is one of the most widely used indicators of economic performance…
Q: Which scientific method of research would be used if a college student running for student body…
A: Survey- It is the method of research involving the collection of data from a group of individuals to…
Q: Tim is buying pizza and salad for a company lunch. Suppose that a slice of pizza costs $4.00, and a…
A: A budget constraint shows various combinations of two goods a consumer can purchase by spending all…
Q: Two firms produce the same good and compete against each other in a Cournot market. The market…
A: The Cournot model of oligopoly outlines a scenario where a small number of firms autonomously…
Q: How does the fluctuating value of the Euro affect the price of German cars sold in the United…
A: With a focus on issues like trade, exchange rates, and international finance, international…
Q: Appreciation of the real exchange rate A. makes U.S. exports less expensive to foreigners. B.…
A: Appreciation refers to the increase in the value of a currency relative to other currencies in the…
Q: Figure 9-1 Price $50 10 15 US Supply O 5 units O 15 units O 10 units O 20 units World price U.S.…
A: The import of a good can significantly impact the supply and demand dynamics within a market. Here's…
Q: Suppose your elasticity of demand for your parking lot spaces is –2, and price is $8/day. If your MC…
A: Making business decisions and allocating resources in the face of numerous challenges is part of…
Q: PPF
A: The Production Possibilities Frontier (PPF) is a graphical representation of the combination of two…
Q: Exercise: A firm produces output according to the following production function: q = A K1/4 L1/4 The…
A: Production function:Production is a function of land labor capital and entrepreneurship. It includes…
Q: Player 1 X Y Player 2 1 2 1 3,2 2 Wo 1 1,3 -0,1 hich of the following is the Subgame Perfect Nash…
A: The given question shows two players 1 and 2 with the following strategies and payoffs:Player 1 has…
Q: 1. A country had real GDP per person average of 5800 in 2005 and has had real GDP growth of 8,4% per…
A: GDP basically refers to the total monetary value of all final goods and services that a nation…
Q: Draw a correctly labeled aggregate demand and aggregate supply graph and show each of the following:…
A: Aggregate demand:Aggregate Demand is when the total number of consumers have the desire to buy…
Q: Suppose now that that Y denotes the annual salaries (in thousands of dollars) for US citizens who…
A: To determine the upper and lower bounds of the 95% confidence interval (CI) for the parameter…
Q: Consider a market with an inverse demand Function p = 60-4*Q. There are two firms, an incumbent and…
A: Game theory was discovered by von Neumann and Morgenstern in which two or more players play a game.…
Q: Subject: Engineering Economics An earth compactor costs Rs. 2,00,000 and has an economic life of 9…
A: The objective of the question is to calculate the annual cost to the owner of the earth compactor,…
Q: *Demanding accountability beyond economics' is used to describe societal expectations in the context…
A: The phrase 'demanding accountability beyond economics' refers to the growing expectation that…
Q: An economy with a strong export sector has been accumulating large surpluses in its current account.…
A: The objective of the question is to identify the most appropriate action for the government to take…
Q: O True O False
A: Utility refers to the satisfaction or well-being of the terrorist. It is a measure of how well the…
Q: en do ne xports of goods and services increase? et exports of goods and services increase when OA.…
A: Net export refers to the gap between the export and import. The net export is positive if export…
Q: Refer to the information provided in Figure below to answer the question that follow. 24 820 18 D 4…
A: The profit-maximizing output is the level of production at which a firm achieves the highest…
Q: In the utility of the terrorist equation: U₁ = a₁ + 8 (F₁(F), B) i i The amount of food security…
A: Utility refers to the satisfaction or well-being of the terrorist. It is a measure of how well the…
Q: 10) Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run…
A: Production function:Production is a function of land labor capital and entrepreneurship. It includes…
Q: In the context of public finance and taxation, which scenario best illustrates the concept of a…
A: A Pigovian tax is a type of tax imposed by the government to address the negative externalities…
Q: Problem 3: Different GDP Techniques Consider the following mini-economy composed of two firms (Firm…
A: Gross domestic product is the final combination of goods and services in a country. GDP is an…
Q: The graph to the right shows a situation in which the economy was in equilibrium at potential GDP…
A: Government spending is the total amount spent to improve economic conditions. It could be on…
Q: Explain what does the author refers to when he says "People Face Trade-offs" - Try to do it in your…
A: The phrase 'People Face Trade-offs' is a fundamental concept in economics. It refers to the idea…
Q: Case Study Question: The XYZ Company operates in a highly competitive market, producing and selling…
A: A perfectly competitive model refers to a market situation at which there are many buyers and…
Q: The production possibilities frontiers depicted in the diagram to the right illustrate A. both the…
A: The production possibility curve shows the trade-off between the two commodities that arises from…
Q: Consider the following production function: q=100L0.80.4 Currently the wage rate (w) is $2.00 and…
A: The profit-maximizing firm or cost-minimizing firm would employ the labor and capital at the point…
Q: Below table shows the production possibilities for the country of Emilon: A Rice 311111 0111 Beef…
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: Happy Goluki likes tea (good 1) and cookies (good 2). Her preferences are represented by the utility…
A: Utility function : U = q10.5 + q20.5q1 : Tea q2 : Cookies Income = 180
Q: Refer to the information provided in Figure below to answer the question that follow. Total utility…
A: Total utility is defined as the satisfaction that is derived from the consumption of a good or a…
Q: Suppose that the economy's production function is: Y = (K) 0.5 (AN) 0.5, that the savings rate s is…
A: The objective of the question is to find the steady state values of the variables in the given…
Step by step
Solved in 3 steps with 7 images
- This is a graph of our firm’s costs. Label the lines on the graph using the following labels: average fixed cost (AFC), average variable cost (AVC), average total cost (ATC) and marginal cost (MC). Then label the shut down and breakeven points on the graph. The accountants claim that we are at our profit maximizing point. You decide to investigate potential diseconomies of scale. What diseconomies of scale do you think you might find? How could these be addressed and hopefully decrease costs? (20 points)Could you show the profit and loss on the graph. Furthermore, the figures for cost you posted were incorrect as they are not dropdown options.A company produces very unusual CD's for which the variable cost is $ 15 per CD and the fixed costs are $ 50000. They will sell the CD's for $ 79 each. Let a be the number of CD's produced. Write the total cost C as a function of the number of CD's produced. C =$ Write the total revenue R as a function of the number of CD's produced. R=$ Write the total profit P as a function of the number of CD's produced. P=$ Find the number of CD's which must be produced to break even. The number of CD's which must be produced to break even is Question Help: Video Submit Question
- The following are the cost information of a typical ice tea company in an industry with 100 firms. Output (ice tea per hour) Marginal Cost ($ per ice tea) Average Variable Cost ($ per ice tea) Average Total Cost ($ per ice tea) 3 2.50 4.00 7.33 4 2.20 3.53 6.03 5 1.90 3.24 5.24 6 2.00 3.00 4.67 7 2.91 2.91 4.34 8 4.25 3.00 4.25 9 8.00 3.33 4.44 a) At the price of $2.20 per ice tea, what is the firm’s profit maximizing level of output? Why is this the profit maximizing level of output for the firm? b) If the market price is $8 per ice tea and the firm is producing six (6) ice tea per hour, is the firm maximizing profit or not? Why or why not? If the firm is not maximizing profit, what should it do to maximize profit? c) At the price of $8 per ice tea, what is the firm’s profit-maximizing level of output? Why is this the profit maximizing level of output? What is the firm’s economic profit at…The following are the cost information of a typical ice tea company in an industry with 100 firms. Output (ice tea per hour) Marginal Cost ($ per ice tea) Average Variable Cost ($ per ice tea) Average Total Cost ($ per ice tea) 3 2.50 4.00 7.33 4 2.20 3.53 6.03 5 1.90 3.24 5.24 6 2.00 3.00 4.67 7 2.91 2.91 4.34 8 4.25 3.00 4.25 9 8.00 3.33 4.44 d) Is the price $8 a short-run or long-run equilibrium price for the industry? If the price is not a long run equilibrium price, what adjustments are likely to happen in the market for it to reach long run equilibrium. e) What price must prevail in the market for a typical firm to operate in the short run? At this price, how many ice tea will be supplied by all firms in the market?Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the company’s total cost of production at various production quantities. Fill in the remaining cells of the following table. On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle 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 $200, so you should start your ATC curve by placing a green point at (1, 200). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $80, so you should start your MC curve by placing an orange square at (0.5, 80).) Note: Plot your points in the order in which you would like them connected. Line segments…
- Month (m): 4 Day (d): 1 Use the two numbers above, m and d, to complete the cost function for a perfectly competitive firm: Cost (q) = m q2 + d = (30) For a cost function like yours, Marginal Cost (MC) = 2 m q . Specifically, what are the following for the cost function you wrote out above? Fixed Cost = Average Total Cost = Cost (q)/q = Variable Cost = Average Fixed Cost = FC/q = Marginal Cost = 2 m q = Average Variable Cost = VC/q = (15) Fill in the table with your values from your cost function. q Total Cost AVC AFC ATC MC 0 0 0 -- -- -- 1 2 3 4 5 6Suppose the imaginary company of Athena is a small, Rochester-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 Total Cost Marginal Cost Fixed Cost Variable Cost (Pairs) (Dollars) (Dollars) (Dollars) (Dollars) COSTS (Dollars per pair) 240 On the following graph, plot Douglas Fur's average total cost (ATC) curve using the green points (triangle 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 placing a green point at (1, 210). For MC, plot the points between the integers: For example, the MC of increasing production from zero to…A profit-maximizing firm in a competitive market is currently producing 90 units of output. It has average revenue of $6, average total cost of $6, and fixed cost of $270. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must be 90 units.
- We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?***What would this look like in EXCEL, Graph and Table*** The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50?Douglas Fur is a small manufacturer of fake-fur boots in Dallas. The following table shows the company’s total cost of production at various production quantities. On the following graph, plot Douglas Fur’s average total cost (ATC) curve using the green points (triangle 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 $155, so you should start your ATC curve by placing a green point at (1, 155). For MC, plot the points between the integers: For example, the MC of increasing production from zero to one pair of boots is $95, so you should start your MC curve by placing an orange square at (0.5, 95).) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.