The graph shows the demand curve (D), average total cost curve (ATC), average variable cost curve (AVC), and the 90 - marginal cost curve (MC) for a perfectly (or purely) 80 - competitive firm. D= MR 70- Assuming that this firm maximizes profit, what is this firm's profit? 60 - ATC 50 AVC profit: $ 40 40- 30- MC 20 - 10- 40 10 20 30 50 60 70 80 90 Quantity Price and cost ($)
Q: The following table shows marginal costs for a perfectly competitive firm: Output 100 200 300…
A: It is given that MC (in $) Output 5 100 10 200 20 300 40 400 70…
Q: The figure to the right represents the cost structure for a perfectly competitive firm with its…
A: In a competitive firm there are large number of firms selling identical products thus having no…
Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output…
A: A competitive firm is a price taker and can sell any quantity of output at the market determined…
Q: Suppose the price determined by the market is 1.5. Assume a perfectly competitive industry. Show all…
A: The firm would minimize the loss or maximize the profit at the output level where marginal revenue…
Q: xplain the three possible profit-maximizing positions of perfectly competitive firms in the short…
A: To expand profits in an entirely competitive market, firms set minor income equivalent to minimal…
Q: The fastfood industry can be considered a perfectly competitive industry between two competitive…
A:
Q: Scenario: You and the other donut shops that just opened in your area are all selling the same basic…
A: The formulae used to solve the table are given below: TC = VC + FC TR = P *Q Pr = TR-TC MC = TRn -…
Q: In the above figure, the left hand side graph represents a perfectly competitive industry and the…
A: Perfect competition is an ideal type of market structure where all producers and consumers have full…
Q: At what output does a perfectly competitive firm maximize its profit? when marginal cost equals…
A: A perfectly competitive firm is the one where there are large number of buyers and sellers selling…
Q: Consider the following cost curve for a firm in a competitive industry where the market price equals…
A: The rise or decrease in the cost of producing one more item or serving one more client is referred…
Q: The graph shows the marginal cost (MC), average total cost (ATC), and marginal revenue (MR) curves…
A: # a competitive firm produces output where P=MC. At this P=MC, from the given figure it is easy to…
Q: The graph below gives marginal costs (MC), average variable costs (AVC), and average total costs…
A: When P = MC = $1.5, Price (MC) is higher than AVC, so firm will continue to produce in short run. So…
Q: Consider the competitive market for products known as Bergers where there are 500 firms – with each…
A: Perfect competition is a market structure where there is a large number of buyers and sellers exists…
Q: 70. In a perfectly competitive market, industry demand is given by Q = 1000 – 20P. The typical…
A: In a competitive industry there are large number of firms producing identical products thus each…
Q: The fastfood industry can be considered a perfectly competitive industry between two competitive…
A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…
Q: Price and cost MC ATC AVC 20 MR 15 14 11 750 1,100 1,350 1,800 Quantity Figure 12-5 shows cost and…
A: The perfect competitive industry is that industry which has large number of buyers and sellers. They…
Q: Paragraph Styles 8. When firms are said to be price takers, it implies that if a firm raises its…
A: Since you have asked multiple question, we will solve the first question for you. If youwant any…
Q: Aji Fatou owns a rental space in New York and is thinking of opening a restaurant in that space. The…
A: Accounting profit refers to the net income for a corporation or sales less costs. You may calculate…
Q: Explain why a competitive firm’s marginal cost curve is the same as its supply curve.
A: In perfectly competitive market there are many sellers as well as buyers. Price is given that means…
Q: The graph depicts the average total cost curve for a perfectly competitive firm. At the long-run…
A: In a perfectly competitive market, price is constant at all levels of output so it is equal to…
Q: Explain why a profit-maximizing competitive firm would produce up to the point where price equals…
A: The marginal cost of creation is the adjustment of absolute creation cost that comes from making or…
Q: Graph the AT C, AV C, MC, and MR curves in a single graph, and indicate the profit maximizing level…
A:
Q: Create a graph that shows the cost curves and profit maximizing output level for a perfectly…
A: A perfectly competitive firm is characterized by five factors: infinite number of buyers and…
Q: n the short run, in order to maximize profit, a firm in a perfectly competitive market will operate…
A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…
Q: why does price equal marginal revenue for the perfectly competitive firm? what is the relationship…
A: Perfect competition refers to the type of market organization in which there are many buyers and…
Q: Radhika has started providing tutorial service to 10th standard students in mathematics. She charges…
A: Given : Revenue per week per student = Rs 750 Total weekly cost = Rs 8000 Revenue for 10 students…
Q: Firm Alpha operates in a perfectly competitive market in a constant-cost industry and is earning…
A: Perfect competition: Perfect competition occurs in economic theory when all firms sell identical…
Q: draw a short run firm and industry competitive equilibriums for a perfectly competitive…
A: It is given that the alligator-farming industry is perfectly competitive and earns zero economic…
Q: Consider a firm that is indifferent between shutting down and continuing to operate in the short run…
A: Given that, Market price = $50 Total cost = $600 Average fixed cost = $10 We have to find revenue of…
Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…
A: Firms in perfect competition earn zero economic profit in the long run. This means price is equal to…
Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…
A: Average cost is the ratio of the total cost and the total output produced. Whereas, the marginal…
Q: Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost…
A: Answer: A perfectly competitive firm maximizes its profit where the average total cost (ATC) is…
Q: The graph on the right shows cost curves for a perfectly competitive firm. Firm's Supply Curve Use…
A:
Q: Suppose that a firm could sell 18 units of output for $100 each or $19 units of output for $98 each.…
A: Marginal revenue is increase in total revenue due to sale of one more unit of output.
Q: A firm in a perfectly competitive industry knows the following about its costs and revenue. The firm…
A: In perfectly competitive market price is constant so it is equal to marginal revenue. At profit…
Q: Question 8 of 20 The graph presents the costs and revenue for a purely Cost and revenue competitive…
A: In purely competitive market, price is constant so profit is maximised at a point where Price =…
Q: Equilibrium for the Perfectly Competitive Industry Consider Figure 34.1. Assume that the market…
A: A perfectly competitive market has a large number of buyers and sellers. The equilbrium price and…
Q: Suppose you are the manager of a watchmaking firm operating in a perfectly competitive market. Your…
A: In perfectly competitive market, price is constant so price is equal to marginal revenue. Firms will…
Q: in a perfectly competitive market with a constant cost industry, there are currently 100 identical…
A: A perfectly competitive firm produces at P=MC in short run. TC= Q2 + 4Q + 36 Differentiate TC w.r.t…
Q: In a perfectly competitive market with constant cost industry and with the market demand…
A: Let this be the long run TC= 100 + 4q2 Then ATC=TC/q LRATC=100/q+4q Minimizing this :Putting the…
Q: A perfectly competitive firm has total revenue of $10,000 from its daily output. That output is the…
A: "A perfectly competitive firm is a price taker and can't influence the price of it's product or…
Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output…
A: A competitive firm faces a parallel price line because in a competitive market, the firm is a price…
Q: Consider the following graph of the average and marginal cost functions for a firm in a perfectly…
A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…
Q: 8. Perfectly competitive firms, in the short run, should continue to operate as long as they earn…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: The following problem traces the relationship between firm decisions, market supply, and market…
A: Answer: Given, Number of firms in the industry = 100 (1). Equilibrium occurs where the quantity…
Q: Explain the three possible profit maximizing positions of perfectly competitive firms in the…
A: The various forms of market structure include perfect competition, oligopoly, monopoly, and…
Q: When the perfectly competitive firm produces the quantity of output at which marginal revenue equals…
A: A perfectly competitive firm maximizes profit by producing at the level where marginal revenue…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Perfect competition is an economic term that refers to a theoretical market structure in which all suppliers are equal and overall supply and demand are in equilibrium. Figure 23. 1 shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. Figure 23.1 Cost, pnce (Rand) B. R800 C. R960 20 D. R720 200 60 80 Output per day 100 MC AC What is the total revenue of the profit-maximising firm in the short run? A. R2 000 Price AVC @ KQ23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.s12.5 MC АТС $10.0 P-MR 8.0 $7.5 $5.0 $2.5 - $0.0 0 10 20 30 40 50 60 70 80 90 100110120130 Quantity When maximizing profit, the perfectly competitive firm depicted in the graph will earn per-unit profit approximately equal to: $2.5 $7.5 $2.10 $10 Cost, Price
- Calculate the average total, fixed, and marginal costs for a “competitive” firm with the following production cost schedule. q Total Cost ATC AFC MC0 10 100 12 200 16 300 26 400 38 500 75 600 120 What output or q (in the units of 10) is the most efficient production level? If the market price is $0.10 then what output or q (in the units of 10) is the most profitable production level? (This is the answer im looking for)MC ATC 24 P = MR 20 18 4 100 350 500 700 q Bales of hay from the graph of a perfectly competitive firm above, answer the following questions:# 1. What is the profit maximization level of of output? ( 2. What is the value of ATC at the best level of output? 3. what is the amount of profit the firm makes at that level of output? show your calculations. 4. At what price firm will breakeven В ISuppose a firm in a competitive industry has the following cost curves: 10 9 8 7 6 5 4 3 2 1 Price + 1 + + + 2 3 4 5 MC ATC AVC P1 P2 P3 P4 + 6 7 8 Quantity Refer to Figure 14-13. If the price is P1 in the short run, what will happen in the long run? Nothing. The price is consistent with zero economic profits, so there is no incentive for firms to enter or exit the industry. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. Because the price is below the firm's average variable costs, the firms will shut down.
- Lisa’s Lawn Company (LLC) is a lawn-mowing business in a perfectly competitive market for lawn-mowing services. The following table sets out Lisa’s costs. Quantity (Lawns per hour Total Cost (dollars per lawn) 0 $30 1 40 2 55 3 75 4 100 5 130 6 165 If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow? If the market price is $30 per lawn, what is Lisa’s profit in the short run? If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?56. Total profit from marginal profit. Hanna's Hat Com- pany's marginal profit, P, as a function of its total cost, C, is given by dP -200 dC (C + 3)3/2" a) Find the profit function, P(C), if P = $10 when C = $61. b) At what cost will the firm break even (P = 0)?Price (S) 24- 21- 18- 15- 12- 9- 6- 3- 0 MG OC. 800 OD. 1,200 6 8 10 12 14 16 18 20 Quantity (100s) (Figure 7) The graph shows a firm's marginal cost curve. This firm operates in a perfectly competitive industry with market demand and supply curves given by Qd = 100-8 P and QS = -20+2 P, where Q is measured in millions of units. Based on the figure, how many units of output will the firm produce at the equilibrium price? OA. 400 OB. 1,100
- The following table shows the output and total cost for a firm in a purely competitive industry Output TC AC MC 0 40 1 95 2 115 3 130 4 150 5 175 6 210 7 260 8 330 If the price of the product is RM50, what will be the equilibrium output of the firm? Calculate the profits or losses.A firm on competitive market has the data about cost as below Q,0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 TC 100160208254290320340355370390430475525580640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. c. Determine the supply curve of this firm 3. A firm on competitive market has the data about cost as below Q 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TC 100 160 208 254 290 320 340 355 370 390 430 475 525 580 640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. C. Determine the supply curve of this firmQuestion Suppose firm VACC produces in a (perfectly) competitive industry and has the cost function C = 300 + 2q^2 + 15q where q is its output level. a) What are VACC's marginal cost? b) How much output will VACC produce for a price P = 115? c) Compute VACC's profits. d) What is the difference between a firm's profits and producer surplus ? (Can you give an intuition for the concept of producer surplus ?) e) What is VACC's producer surplus ?