Figure illustrates the cost curves of a perfectly competitive firm. If the market price is P1 Question 43Answer   The firm will experience a loss and raise its price to P2. The firm will then break even.    The firm will break even by producing a quantity of Q2.   The firm will experience a loss since price is less than ATC.   The firm may make a profit if it can increase the demand for its product.

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 75 million pounds per year. Suppose a top medical journal publishes research that animal-alternative protein sources such as jackfruit could decrease your expected lifespan by 5 years. The publication is expected to cause consumers to demand jackfruit at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the publication. 2 1 10 9 8 Supply Demand 0 0 + 15 30 45 60 75 90 105 120 135 150 QUANTITY (Millions of pounds) In the long run, some firms will respond by + 1 } Demand Supply until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the publication and the new long- run equilibrium after firms and consumers finish adjusting to the news. 2 1 10 9 Supply Demand B…

A firm operates in a perfectly competitive market. The firm’s total cost of production is given by the following equation: TC(q) = 100 + 48q2 + 5q, where q is the quantity supplied. What is the shutdown point for this firm in the short run, or in other words, what is the market price below which a firm is better off not supplying any units in the short run? [Advice: draw AVC and MC]

In a perfectly competitive market: the market price is 28 Marginal cost (MC) = 2(Q) + 8 average total cost at equilibrium is 28, and average variable cost at equilibrium is 7 The profit maximizing price is Number The profit maximizing quantity is Number :Total revenue is Number Total cost is Number Average fixed cost is Number Total fixed cost is Number Total profit/loss is Number Marginal ravenue is Number At this market price,over time, firms would: 1. Enter the industry 2. leave the industry 3. There is no incentive to enter or leave the industry. Number (assume all firms have the same cost structure) :At the market price, could this be a long run equilibrium price? (if yes=1, no=D2) (assume all firms have the same cost structure) Number

PRICE O P₂ P₁ MC ATC Q. Q₂ AVC Q₂ Q, Q₂ QUANTITY Suppose a firm operating in a competitive market has cost curves according to the above figure. Which of the following prices is the exit price? P1 P2 P3 P4 SAN

Consider the following figure for a perfectly competitive firm. Price, Costs MC K ATC E F AVC R J P = MR Q1 Q2 Q3 Q4 Q5 Output The figure above shows a perfectly competitive firm. To maximize profits or minimize losses, the firm will produce units and its profit/loss is given by Q3; Area of the rectangle JEKQ Zero ; Area of the rectangle IEKM Q3; Area of the rectangle JIMQ Zero ; Area of the rectangle JEKQ

If a firm operates at a loss, the loss is equal to TC - TR. If the firm shuts down instead, its loss is equal to FC. Given this, show that price must exceed AVC for the firm to operate at a loss and not shut down

Marginal cost= 2x+3 Average variable cost= x+3 Variable cost=x^2 + 3x x is the daily output. Product's price is 13 dollars. Part a) Calculate the level of output that will be produced.  Part b) Calculate the producer surplus of the firm.  Part c) The fixed costs are 5 dollars. In the short run, is the firm making a 0 economic profit, a positive profit, or a negative profit? Explain why.

The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs MC ($) Quantity of Ear Buds 5 10 15 20 25 30 35 40 2.00 2.45 3.55 4.00 5.50 5.98 8.52 pairs ATC ($) 2.00 2.00 2.15 2.50 2.80 3.25 3.64 4.25 Check my work Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? d. Now assume the market price is $5.50 per pair, and Buddies produces the…

Consider the perfectly competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MCMC), average total cost (ATCATC), and average variable cost (AVCAVC) curves shown on the following graph.   The following diagram shows the market demand for steel. Use the orange points (square symbol) to plot the short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms.   If there were 20 firms in this market, the short-run equilibrium price of steel would be   per ton. At that price, firms in this…