3:04:11...docxa. What quantity of jugs would be sold each day in order to maximize his total revenue?Quantity:b. What price would the chief charge?Price: $c. What is MR at this price and quantity?MR:Quantity per periodd. Assuming no marginal costs, what price would the chief charge in order to maximize his total profits?Price: $How to Build a C....docxHOHow to Build a Pl....docxSearch< Prev.,35 of 60wwwwwwHow to Build a Pl....docxNext >How to build aOPs The graph below shows the daily demand curve for fresh spring water in a remote mountain village in the land of Far Country. The onlyspring is controlled by the village chief who earns revenue from the sale of water in order to cover the costs of running the village. Thevillagers bring their own jugs and pay a price per jug as they leave.Price54321020406080Quantity per period100D120k

The given graph shows the demand curve of fresh spring water has a vertical intercept 6 and a…

a. What quantity of jugs would be sold each day in order to maximize his total revenue? Quantity: b. What price would the chief charge? Price: $ c. What is MR at this price and quantity? MR: d. Assuming no marginal costs, what price would the chief charge in order to maximize his total profits? Price: $

a. What quantity of jugs would be sold each day in order to maximize his total revenue? Quantity: b. What price would the chief charge? Price: $ c. What is MR at this price and quantity? MR: d. Assuming no marginal costs, what price would the chief charge in order to maximize his total profits? Price: $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Tomas is the general manager for a local automated car wash. The market he operates is perfectly competitive. Every car wash in the area is charging $7 for a car wash, which is also the marginal cost per wash. What will happen to Tomas’ profits if he changes his price to $8. Why? What about the price of $5? What is his profit-maximizing price?
What is a price taker? A price taker is A. a firm with a perfectly inelastic demand curve. B. a firm that has the ability to charge a price greater than marginal cost. C. a firm that is unable to affect the market price. D. a firm that does not seek to maximize profits. E. a firm with a downward-sloping demand curve. When are firms likely to be price takers? A firm is likely to be a price taker when A. it has market power. B. firms in the industry collude. C. it sells a differentiated product. D. it represents a small fraction of the total market. E. barriers to entry are substantial.
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What is the firms profit or loss?
Refer to the diagram to the right. In the long run, why will the firm produce Q, units and not Q units, which has a lower its average cost of production? OA. Although its average cost of production is lower when the firm produces Qg units, to be able to sell its output the firm will have to charge a price below average cost, resulting in a loss. B. The firm's goal is to charge a high price and make a small profit rather than a low price and no profit. O C. At Qg. average cost exceeds marginal cost so the firm will actually make a loss. Op. At Qg, marginal revenue t is less than average revenue cost which will result in a loss for the firm. Price and cost per unit ($) MR Q₁ QgQnQj Quantity MC ATC
The figure below shows the demand and costs facing Mike's Bikes, a producer of mountain bikes. What quantity does the firm produce and what is its price? Calculate the firm's economic profit or economic loss. Price and cost (dollars per bike) 400 350 300 250 200 150 100 50 MC ATC MR 100 200 Quantity (mountain bikes per week) Quantity produced is 100 mountain bikes per week, price of a mountain bike is $200 per bike, and economic loss is $10,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $250 per bike, and economic loss is $5,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $200 per bike, and economic profit is $5,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $250 per bike, and economic profit is $5,000.
If firms can easily enter and exit a market, then A. firms will earn zero economic profit in the short run. B. firms will produce at minimum average fixed cost in the long run. C. firms will produce where price is greater than marginal cost. D. firms will produce where price is greater than marginal revenue. E. firms will produce at minimum average cost in the long run.
Dollars A BC O Hi K O G O Multiple Choice I ELM N MC MR Quantity Refer to the diagram. At the profit-maximizing level of output, the firm will realize ATC Demand an economic profit of A-B-H-J. a loss of GH per unit. an economic profit of A-C-G-J. a loss of JH per unit.
4. Hundreds of music stores have been closing in the face of stagnant demand for CDs because of new competition by online music vendors. a. How would price competition from these new sources cause a retail store to close? b. In the long run, will CDs remain a viable product? If so, how?
Please follow instructions and follow graph. Show work
5. Restaurants offer related but differentiated products to their consumers. In the long run, new restaurants enter the market and imitate the cuisine and atmosphere of successful competitors. How would you expect a restaurant to set its prices in the long run? Describe the relationship between price and average total cost. Does a restaurant earn economic profits?
A firm that is producing the quantity at which marginal cost exceeds both average total cost and the market price will increase its economic profit by a. producing a smaller quantity b. producing a smaller quantity c. raising the price to equal marginal cost d. producing the quantity that minimises average total cost e. producing a larger quantity