an Essay  with diagrams   “Cost functions can be very important for determining the structure of a market.

Q: Price Quantity Marginal Cost 60 1 30 55 2 30 50 30 45 4 30 40 30 35 30

A: A profit maximizing firm should produce up to that level of output where price = marginal cost. If…

Q: 5. Suppose a firm has the following cost curves, depicted in the graph below. +5 a. Suppose price is…

A: Profit Maximization: The firm will aim to maximize its profits or minimize its losses in the short…

Q: The cost function of producing Q units of good: C(Q) = 4Q2 + 16Q + 40 Write down the average cost…

A: Total cost: ‘total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: The curves below reflect information about the cost structure of a firm. Use the figure to answer…

A: In a market,  a firm's cost curves helps to analyze its production efficiency at different output…

Q: How can a company have a competitive advantage without scale?

A: Differentiation Strategy.Being distinctive is a great approach for businesses to differentiate…

Q: Should the Marginal revenue exceed the marginal cost? Why?

A: The firm is said to be in equilibrium when it has no tendency to increase or decrease its output. If…

Q: What would be the value of economic profit if explicit cost is $200, implicit cost is $150 and total…

A: The data presented in the question above is:- Explicit cost of the firm = $200 Implicit cost of firm…

Q: What happens to the average fixed cost, when the output of a firm increases.

A: # In an economy, the average fixed cost is referred to be as fixed cost per unit of output produced.…

Q: In economics, the long-run' refers to the time period when all factors of production are fixed. some…

A: The long run refers to a period of time during which all variables of production can be changed. It…

Q: What do you mean by product variation?

A: # In markets such as oligopoly and monopolistic competition where there is high competition, in such…

Q: The cost function of producing Q units of good s.t:

A: ‘Total cost’: ‘Total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: Identify the economies of scale where the producer operates. Show cost curves of the firm…

A: The economies of scale means when the level of production or output is raised, the average cost of…

Q: There are big efficient farms in Brazil that use lots of machinery competing against many small…

A: In the coffee industry, big farms in Brazil have a significant advantage over small farmers because…

Q: The total cost changes from 92 to 122 and the quantity changes from 1 to 2 Calculate the value of…

A: # change in total cost divided by the change in total quantity is referred to be as the marginal…

Q: onsider the production process for a Vending Machine Service. Identify the fixed costs associated…

A: Small business can be described as a partnership, privately-owned company, or sole proprietorship…

Q: "Costs do not affect the market price" is this statement right or wrong? Show your work

A: Answer: According to a prior research of price determination in the market age, production expenses…

Q: If you are a manager in a highly competitive business such where should you put your most effort to…

A: Answer: In a highly competitive industry, all the firms sell almost homogeneous goods. The cost of…

Q: What is the relationship between the marginal cost (MC) curve and marginal product MP) curve of a…

A: The marginal product is the change in the total product when an additional unit of the variable…

Q: You are working for company that operates in a competitive industry, which sells flower bouquets.…

A: The quations is an example of perfect competition where marinal cost curve is equal to supply curve.…

Q: None

A: From the analysis of the cost curves and the given price of $12, we can draw several important…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: The cost function of producing Q units of good: C(Q) = 4Q2 + 16Q + 40 Write down the average cost…

A: Cost is the expenditure incurred on inputs to produce given output. Total Cost (TC) consists of…

Q: 40 35 20 PRICE (Dollars per shirt) On the following graph, use the orange points (square symbol) to…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What will be the price and quantity where the firm will shut down?

A: As a perfectly competitive firm produces a greater quantity of output, its total revenue steadily…

Q: In the short run, which cost is fixed and cannot be changed? a) Average cost b) Marginal cost c)…

A: Understanding the various sorts of costs in financial aspects is significant for examining business…

Q: 3:5 Uwe produces bicycles. The quantity of bicycles is Q. The material costs are 36 for each…

A: Since , we are given that Quantity of bicycle produced=Q Material cost= 36 for each means 36Q Cost…

Q: Suppose a resturant in a city making above normal profit in the short run. How will the market…

A: A restaurant is operating in a monopolistic competitive market structure.

Q: 1) Use the graph to answer the question below. The quantity is measured in thousands of units.…

A: As per the guidelines answer is given to the first question. (1) As per the diagram given in…

Q: The total cost changes from 92 to 122 and the quantity changes from 1 to 2 Calculate the value of…

A: Marginal cost refers to the additional total cost derived from an additional quantity produced.…

Q: Marginal cost tells us a. the amount fixed cost rises when output rises by one unit O b. the…

A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…

Q: Use the cost curves below to answer the following questions. 120 90 80 70 40 30 200 250 300 500 MC…

A: In perfect competition,  A firm will produce where P = MC  P is the market price MC is the marginal…

Q: Which one of the following is a fixed cost for a handmade furniture manufacturer?   The cost of…

A: The total costs of any firm in the short run comprise the firm's fixed costs and its variable costs.…

Q: When will a business shut-down in the short-run?

A: Short-run: - it is a short time period in which some factors of production are variable and some are…

Q: A firm's long run cost is the cost of production when the firm Select one calculates its cost at…

A: In the long run, all the factors of production are variable, that is, the firm can even alter the…

Q: What level of output does a firm produce?

A: The quantity of products and services produced in a particular time period is referred to as output…

Q: What is the total cost and average cost when marginal cost is 120, fixed cost is 25, total revenue…

A: In economics, cost is the value of resources that are used to produce a good or service. This…