ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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A firm sells 1,000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65.
1. What should the firm do in the short run? Why?
2. What should the firm do in the long run? Why?
3. At what
4. At what price would the firm consider shutting down in the long run?
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- NEED HELP! I am absolutely bad at graphs I need help with A through F and can you please explain. Draw the MR, MC, AVC, ATC, Demand, supply, MC and MR for the following situations. For each of these situations show the total revenue, total cost area, and shade the profit or loss area, and if the situation is a shut down state why it should shutdown. a. A perfectly competitive firm showing a profitb. A perfectly competitive firm showing a loss but not a shut-downc. A perfectly competitive firm at a break-even pointd. A monopolist showing a profite. A monopolist showing a loss but not a shut-downf. A monopolist at a break-even pointg. Difference between a monopolist and a perfectly competitive firm for a profit situation on the same graph space.arrow_forward5. John Capellini owns a small vineyard and sells wine. The market for his type of wine is fully competitive. John's cost function per bottle is TC = 800 +2Q +.5Q². If John can sell his wine for $32 per bottle, how many bottles should he produce? a. 1884 b. 800 c. 40 d. 30.arrow_forwardHow do I do this?arrow_forward
- Suppose fixed costs are $10,000, variable costs are $40,000 and the price of the good is $10 and quantity of the good the firm sells is $10,000. A. Caluclate Total Costs. B. Caluclate Total Revenue. C. Calculate the Firm's Profits.arrow_forward2. a) George's hair-cutting business is a profit-maximizing, perfectly competitive firm. George provides haircuts at €27 each. His total cost each day is €280, of which €30 is a fixed cost. He cuts hair for 10 customers a day. What can you say about George's short-run decision regarding shutdown and his long-run decision regarding exit? (Explain using less than 100 words).arrow_forwardMy answer was wrong can I be shown explained what the right answer is?arrow_forward
- A firm is selling apples is profit-maximizing, but they're in a constant cost industry. The industry is perfectly competitive and currently in long-run equilibrium. Assume apples are a normal good and consumer income falls, and the firm continues to produce. 1. Illustrate the decrease in income in the short run with a cost curves graph. Make sure to highlight the area of loss.arrow_forwardAccording to the graph below, if the price of the good is $17, then the result for the perfectly competitive firm will be: Graph: Short-run profit and loss Price MC ATC AVC 1S 13 Quantity Select one: a. making a long-run loss and so it will shut down. b. making a short-run loss but it will continue to produce. c. making a long-run profit. d. making a normal profit.arrow_forwardWhat did I do wrong?arrow_forward
- I answered initially wrong and need help?arrow_forwardWhat are the characteristics of a PC firm? Using Hot Dogs, Graph the market and the individual supply, demand and costs for Hot dogs side by side. Make sure to include the S.R. and L.R Price, Quantity, Demand, MR, MC, ATC, and profit.arrow_forward7. Use the graphs below to answer the following questions. Market a. Is the firm making an economic profit or loss? b. Will firms enter or exit this market? Markat c. Sketch on the graph and explain what happens to bring this market to long run equilibrium d. is the firm making an economic profit or loss? e. Will firms enter or exit this market? MC ATC Firm MR MC ATC age 1 of 3 -MR f. Sketch on the graph and explain what happens to bring this market to long run equilibrium.arrow_forward
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