Please give me correct answer with full explanation and calculation otherwise i give downvoteNote:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs:Quantity(ties per day)Total Cost0$1011722633745056568271018122914510170Instructions: Enter your responses as a whole number.a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.)ties per dayb. How much profit does the firm earn at that rate of output?46c. If the price of ties falls to $13, how many ties should the firm produce?ties per dayd. At what price should the firm shut down?Less than $7

A perfectly competitive(PC) market is a theoretical market structure where numerous purchasers and…

90 145 10 170 13 Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? $ 46 c. If the price of ties falls to $13, how many ties should the firm produce? ties per day d. At what price should the firm shut down? Less than $7

90 145 10 170 13 Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? $ 46 c. If the price of ties falls to $13, how many ties should the firm produce? ties per day d. At what price should the firm shut down? Less than $7

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 9P

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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…
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