We know that a perfectly competitive firm is a price taker because O A) MC and ATC are equal at the profit-maximizing amount of output. B) its MC curve slopes upward. C) its demand curve is horizontal. D) it has no supply curve. E) its ATC curve is U-shaped.
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- For a perfectly competitive producer, the firm's short-run supply curve is: MC ATC AVC QAssume the industry for flour tortillas in Denver is perfectly competitive. There are 200 firms. Seventy-five of the firms are “high-cost,” with short-run supply curves QHC = 5P. The other 125 are “low-cost,” with short-run supply curves QLC = 8P. Quantities are measured in dozens of tortillas and prices in dollars. Derive the short-run industry supply curve for tortillas QS. Assume the market demand curve for tortillas is given by QD = 10,000 − 625P. Find the market equilibrium price and quantity. At this price, how many dozens of tortillas are produced by the high- and low-cost firms, respectively? Determine total industry producer surplus at the equilibrium. Especially need the producer surplus.The supply curve for a competitive firm is: a)it’s entire MC curve b)the upward-sloping portion of its MC curve c)it’s MC curve above the minimum point of the AVC curve d)it’s MC curve above the minimum point of the ATC curve e)it’s MR curve
- Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the average total cost of clocks is $95, the average variable cost of clocks is $90, and the price of clocks is $85. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm: A) can increase profit by increasing output.B) is earning a positive economic profit.C) should continue to produce since total revenue exceeds total variable cost.D) should shut down.In the short run, a perfectly competitive firm maximizes profit at that point where the upward rising part of the MC curve intersects the MR curve. Fully explain in your own words why the other intersection point of MC and MR is not considered as a profit-maximizing point. (No need to include any graphs here)You can tell a firm is operating in a market that is in long-run competitive equilibrium if a) economic profits are zero. b) economic profits are positive. c) accounting profits are zero. d) accounting profits are negative. e) economic profits are negative.
- Assume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis. It may help to create your own cost table and fill in columns for Marginal Cost and Average Total Cost based on the Total Cost information below. a.What is the level of profit for this firm at the profit maximizing output? b.To convince yourself that the quantity you found is indeed the profit maximizing quantity, try calculating what the profit would be at the next higher level of output. What did you find? c. What do you predict will happen in this market over the long run?A firm produces a product in a perfectly competitive industry and has a total cost function TC= 50+4q+2q². a. At the short-run market price of $20, the firm is producing 5 units of output. Is the firm maximizing its profit? Explain. b. What quantity of output will the firm produce in the long run, assuming there is no change in cost structure? What will be the long-run equilibrium price? c. Graphically depict the long-run equilibrium for an individual firm within this market.Suppose a perfectly competitive firms demand curve is below the ATC curve. Explain the conditions under which a firm continues to produce in the short run. Based on the table above, if the competitive equilibrium price $14 a) what is the profit maximizing output for this firm? b) What is the maximum profit the company can make?
- A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues: TC = $830,000 VC = $525,000 TR = $428,000 Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns. is it Profit=TR-TC?The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (quantity-0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to drawit. To refer to the graphing tutorial for this question type, please click here Price and cost 18 15 14 13 12 10 19/21 SUBMIT ANSWER 13 OF 21 QUESTIONS C OMPLETED 28 MacBook Pro 금□ F7 F8 F9 F1o F2 F3 F5the short-run supply curve of a perfect competitive firm is the same as that portion of the marginal cost curve, over and above the minimum portion of the AVC. with graphic support carefully proof this .