P $15 9 11 3 C 14 MC MR Q According to the graph shown, at point C the firm is earning: fewer profits than at point B, and they should produce more. higher profits than at point B, and they should produce more. fewer profits than at point B, and they should produce less. higher profits than at point B, and they should produce less.
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- Suppose that the market for cashmere sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 PRICE (Dollars per sweater) Esc 80 70 60 50 78°F Sunny 40 30 20 10 0 FT 1 0 MC ATC F2 40 70 60 80 10 20 30 QUANTITY (Thousands of sweaters per day) -0- @ AVC 2 50 F3 Q+ # 3 F4 H 90 $ 4 100 F5 Profit or Loss OL % 5 F6 T i F7 A 6 Y Ca F8 & 7 F9 U * 8 F10 D ( 9 F11 ) F12 J 0 Fn 25 10:28 AM 6/25/2022 Dry Er [ A BackspaceUsing the graph attached, calculate the firm's profits at the profit maximizing output.Compute the firm’s profit for A, B, and C and enter this data into the table.
- (1) Use the graph to answer the question below. The quantity is measured in thousands of units. What will this firm decide to do in the long run? A-It will stay in the market because the price is above its AVC at its profit-maximizing output. B-It will leave the market because the price is below its ATC at its profit-maximizing output. C-It will increase its price to point B to earn normal profit. D-It will increase its output until its profit-maximizing output level is equal to B. E-Insufficient data to determine. (2) A dairy farmer is operating in a perfectly competitive market. The market price for milk is between the farmer's average variable cost and average total cost at the profit-maximizing level of output. What will the farmer do? A-Produce more milk. B-Produce less milk. C-Shut down in the short run. D-Operate in the short run and leave the industry in the long run. E-Insufficient information to determine (3) A firm operating in a perfectly competitive market cannot…Aplia Homework: Production and Cost in the Firm 4. Profit maximization using total cost and total revenue curves Suppose Ana runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a price-taker market, and the market price is $10 per teddy bear. The following graph shows Ana's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven teddy bears that Ana produces, including zero teddy bears. 125 100 75 P 0 2 QUANTITY (Teddy bears) 6 Total Cost ☐ 8 *** Total Revenue A Profit (?)What is the goal of a firm?
- What two lines determine whether a firm is making positive or negative or zero profits?The following table shows some of the short run costs for the American Paper Co Fill the blanks in the following table (Hint - Total Fixed Costs remain the same across all levels of output for any firm). Tell me the steps that you took to fill in the blanks. Output (Q) 1 2 3 4 AVC lall 9 TFC AFC 10 10 10 10 10 5 3.33 2.5 ATC 15 | 16 18 TC Legend : AVC - Average Variable Costs; AFC - Average Fixed Costs; ATC - Average Total Costs; TC - Total Costs; MC - Marginal Costs. Our fixed cost is 10 for all of the four outputs MC XXXX OCDiscuss the theory of the firm
- Under what circumstances might you expect the demand curve of the firm to be a. Vertical? b. Horizontal? c. Negatively sloping? d. Positively sloping?Suppose Larry runs a small business that manufactures shirts. Assume that the market for shirts is a price-taker market, and the market price is $10 per shirt. The following graph shows Larry's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Larry produces, including zero shirts. 125 100 TOTAL COST AND REVENUE (Dollars) 25 ☐ Total Cost ☐ -50 0 1 2 3 4 5 6 7 8 QUANTITY (Shirts) Total Revenue A Profit (?) Calculate Larry's marginal revenue and marginal cost for the first seven shirts he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. 25 2 COSTS AND REVENUE (Dollars per shirt) 0 1 2 3 5 6 7 8 QUANTITY (Shirts) Marginal Revenue Marginal Cost Larry's profit is maximized when he produces is shirts. When he does this, the marginal cost of the previous shirt he…explain what is happening in this graphs