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- 3- Conisder the following graph of a firm in the industry to answer the following: MC, ATC Units of Y A. Is this firm working in a comppitive market or monomply? Exp B. Is it working in short or long run? Explain. C. Does this firm achive economic profits, or losses, or breakeven? Explain.Sterling runs a donut shop which which is being operated in a perfectly competitive market where they earn positive economic profits. If the price of a donut is $3, Sterling makes 800 donuts a month, and their monthly average total cost is $2. What are Sterling's profits each month?When should a firm exit the market in the long run?
- PLEASE ANSWER ASAP When can you say that their is presence of a strong perfect competition?Question What should the perfectly competitive firm do in the short run, and why? What will this firm do in the long run? Current production = 10,000 Current price = $15 Total cost $300,000 Fixed cost = $200,000 Marginal cost = $15 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a C d Shutdown in the short run, because their shutdown loses will be $100,000 smaller compared to their loses if they stay open. In the long run they should exit the market. Shutdown in the short run, because their shutdown loses will be $50,000 smaller compared to their loses if they stay open. In the long run they should exit the market. Continue to produce in the short run, because their loses will be $50,000 smaller compared to their loses if they shut down. In the long run they should exit the market. Continue to produce in the short run, because their loses will be $50,000 smaller compared to their loses if they shut down. In the long run they should…58 When a perfectly competitive market is in long-run equilibrium, the firms supplying in that market are earning zero economic profit. E of Select one: OTrue OFalse
- When might a competitive firm shutdown in the short run and exit the market in the long run?Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 10 cents, then this firm: 0.35 Marginal Cest 0.30 0.25 0.20 Average Tetal Cost 0.10 0.05 10 20 30 40 50 e 70 B0 90 Quantity oughnuts/ay O should shut down. O will earn an economic loss. O should produce 50 doughnuts. O should shut down in the long run.The following table shows information for Hayek’s Maps, a perfectly competitive firm. a. Complete the MC column in the table: Output TC MC 0 $ 95 / 1 190 2 275 3 350 4 450 5 565 6 685 7 845 8 1,045 b. Given the prices in table below, fill in columns 2, 3, 4 and 5 of table. (Assume that partial units cannot be produced.) If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. (1) Price (2) Output (3) Total Revenue (4) Total Cost (5) Profit/Loss (6) Total Supply (7) Total Demand $ 89 800 98 780 107 740 116 700 125 660 134 620 c. Suppose there are 110 firms identical to this one. Show the total supply in column 6 of table above. d. If the market demand is as shown in column 7 of table , what will be the equilibrium price? What quantity will…