Microeconomics Final Milestone-25

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Lesson 9 Question 2

Q11 solution needed pic is just reference for Q8   Question 11 Refer to your answers to Questions 8 Will there be entry, exit, or neither by other firms in the long run?  Why?

10. N-Calculating Profit/Loss for PC Firm *4* Charley Company is a competitive price-taker firm that is currently producing 100 units of output (q-100), At the current level of production, the firm has Marginal Revenue of (MR=) $12, Marginal Cost of (MC=) $15, Average Variable Cost of (AVC=) $7, and Average Total Cost of (ATC=) $20. From this information, we can conclude that Charley Company is currently: O Suffering an economic loss but could decrease Its losses by decreasing production (q). O Enjoying an economic profit but could increase Its profits by Increasing production (q). O Enjoying an economic profit but could increase its profits by decreasing production (q). O Suffering an economic loss but should not change its production (a) as it is doing the best it can. O Suffering an economic loss but could decrease its losses by increasing production (a).

3. A profit-maximizing firm is perfectly competitive and is at long-run equilibrium. The output of the firm is 200 units and the total revenue is $1,200.00.Based on the information given, which of the following applies for the firm? The firm's marginal cost is $4.00. The firm's marginal cost is $6.00 The firm's marginal cost is $7.00 The firm's marginal cost is $9.00

QUESTION 10 Jack sells water bottles. Assume the market for water bottles is perfectly competitive. Jack sells his water bottles at the market price of $9.00. At the profit-maximising output level of 51 water bottles, Jack's average total cost is $4.40 per water bottle. The minimum average variable cost is $3.90 per water bottle. Answer the following questions: a. Jack's economic profit or loss is decimal places (ie: to the nearest cent). (use a negative value if a loss). Answer in dollars, rounded to two b. State whether the following statement is true or false: "At the profit-maximising quantity, Jack is making an economic profit of $4.60 per water bottle." Type T for true, or F for false c. State whether the following statement is true or false: "Jack should shut down if the market price is $3.85 per water bottle." Type T for true, or F for false

Slide 2 Questions: a. What is the total revenue of the firm at the optimum level of output? b. What is the total cost at the optimum level of output? c. What is the profit of the firm at the optimum (profit-maximizing) level of output? d. What is the average cost of each unit sold at the optimum level of output? Is the firm at its log-run equilibrium? If yes/no, why?

4) Explain why a firm should continue to operate in the short run so long as market price is greater the firm's average variable cost at the profit-maximizing level of output.

No written by hand solution

The table below shows cost and revenue information for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Instructions: Enter your answers rounded to two decimal places. Choco Lovers Cost and Revenue Quantity of Gift Boxes TC ($) ATC ($) MC ($) 25 205.00 8.20 7.00 30 237.50 7.92 35 7.79 7.00 40 312.50 8.00 45 362.50 8.06 10.00 50 422.50 8.45 12.00 Assume the profit-maximizing price is $10 per gift box, and then answer the following questions: a. Profit-maximizing quantity = gift boxes b. Total revenue = $ c. Profit = $ d. Profit per unit = $ per gift box

Question 14 if you know that the market price for a perfectly competitive firm is 10 Dirhams and the average total cost for this firm -5 dirhamds and the quantity of the maximum profit for this company is - 100 units and the profit/loss (market price - average total cost) x quantity of maximum profit 1- calculate the amount of profit or loss this company has 2- do you advise the company to continue in the market or to shut down the business?

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Solve D and E only in typed answer

Assume that a firm in a perfectly competitive industry has the following total cost schedule:OUTPUT (UNITS)         TOTAL COST ($) 10                                      110 15                                      150 20                                      180 25                                      225 30                                      300 35                                      385 40                                      480a. Calculate a marginal cost and an average cost schedule for the firm. b. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What are total profits? c. Is the industry in long-run equilibrium at this price?

QUESTION 8 Barney produces fried chicken and is operating in a perfectly competitive market. Barney's profit maximising output is 50 sets of fried chicken at the market price of $15.00 per set. His average total cost at this output is $11.00 per set and his average variable cost is $8.50 per set. His minimum average variable cost is $6.70 per set. Select the item from the list provided to make the following statements true. 1. $550 2. increase until $20 3. $125 V The total fixed cost incurred by Barney at his profit maximsing output is Barney is currently making a/an After a long period of time, more and more people enter the 4. $335 market to sell fried chicken. One would expect the market price to per set. 5. economic loss 6. $425 7. remain at $15 8. economic profit 9. normal profit 10. $975 11. accounting loss 12. decrease

The original price of pumpkins were $22.

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Question 14 Below, the graph on the left shows the long-run average and marginal cost for a typical firm in a perfectly competitive industry. The graph on the right shows demand and long-run supply for the industry. LMC, LAC Price and cost (dollars) 40 P LMC 40 35 LAC 30 25 Vix 20 15 10 35 30 25 20 15 10 5 0 $15; 250 $15; 400 $35; 250 Price and cost (dollars) 100 200 300 400 500 Firm's output Industry output Long-run equilibrium occurs because of the entry of new firms into the industry or the exit of existing firms from the industry. In the above industry, long-run equilibrium occurs at a price of and output of $35; 400 LO 5 0 S D

A purely competitive firm finds that the market price for its product is $25.00. It has a fixed cost of $100.00 and a variable cost of $10.00 per unit for the first 50 units and then $30.00 per unit for all successive units.   Instructions: Round your answers to 2 decimal places.   a. Does price equal or exceed average variable cost for the first 50 units?              (Click to select)   No   Yes         What is the average variable cost for the first 50 units?           b. Does price equal or exceed average variable cost for the first 100 units?                (Click to select)   No   Yes         What is the average variable cost for the first 100 units?           c. What is the marginal cost per unit for the first 50 units?                  What is the marginal cost for units 51 and higher?           d. For each of the first 50 units, does MR exceed MC?              (Click to select)   No   Yes         What about for units 51 and higher?              (Click to select)   No   Yes…

11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following costs: Total Cost: TC = 50 + q? Marginal Cost: MC = q where q is an individual firm's quantity produced. The market demand curve for this product is: Demand Qp = 120 – P where P is the price and Q is the total quantity of the good. Each firm's fixed cost is $ What is each firm's variable cost? 50 + 9

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

Part G

2)Suppose you start a business of manufacturing computer software. Assume that this computer software company is a perfectly competitive firm. Your fixed cost per month is Tk. 60,000 and total cost is Tk. 140,000. If you sell 1000 software per month and the average revenue is Tk. 90, what should be your short-run decision regarding shut down and long run decision regarding exit?

Q23 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.

( 8. Short-run and long-run effects of a shift in demand Suppose that the jackfruit industry is initially operating in long-run equilibrium at a price level of $5 per pound of Jackfruit and quantity of 175 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as Jackfruit could increase your expected lifespan by 4 years. The publication is expected to cause consumers to demand Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. (punod jad sig 10 PRICE (Dolars per pound) In the long run, some firms will respond by 10 a 8 T 6 5 3 2 Supply EX Demand Shift the demand curve, the supply curve, or both on the following graph to Tlustrate both the short-run effects of the publication and the new long- run equilibrium after firms and consumers finish adjusting to the news 1 915 0 005 140 QUANTITY Mllions of pounds) 35 280 315 360 Demand Jackfruit at…