If a perfectly competitive firm is incurring an economic loss, it ontinues to operate until either the price rises or its costs fall so that it no longer has an A economic loss Always shut down immediately (B Shuts down if P > AVC (C)

If a perfectly competitive firm is incurring an economic loss, it ontinues to operate until either the price rises or its costs fall so that it no longer has an A economic loss Always shut down immediately (B Shuts down if P > AVC (C)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 6E

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Perfectly Competitive Firm: Short-run Revenues, Cost, Profit Price Tot Rev P*Q Total MC= MP =AQ/AL W=$20 Labor Q=TP Var Cost Fixed Cost CostD ATC/AQ TR-TC input VC +FC 100 100 10 -100 5 5 20 100 120 10 50 -70 15 10 40 100 140 10 150 10 23 60 100 160 2.5 10 230 70 4 26 80 100 180 6.67 10 260 80 5 29 100 100 200 10 10 290 90 30 120 100 220 20 10 300 80 6. What does the relationship between MPL and MC tell you? What is marginal revenue of Q=23? Q= 29? Where is Profit maximized? • What do you think the Total Revenue and Total Ccst Cárves look fike in Pand Q space? 9:09 / 10:11 YouTube CC 72. In the video, what is the level of output that will maximize the firm's profit? Select one: a. Q=23 b. Q=26 c. Q=29 d. Q=30 4.
OutputAFC AVC АТС MC 1 100 40 140 40 50 35 85 30 3 33.33 35 68.33 35 4 25 36.25 61.25 40 5 20 38 58 45 16.67 40 56.67 50 A price taking firm has the above cost data. The price of output is $34. What level of output should the firm choose to maximize profit in the short run?
Solve D and E only in typed answer
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Economics Question
Assume soybeans are produced by a perfectly competitive, constant cost industry. Fresh Fam is a typical frm producing soybeans and is cumently operating with an economic loss. a. Using a correctly labeled graph for Fresh Farm, show each of the following in the short run i The marginal cost curve and average total cost, labeled MC and ATC, respectively ii. Fresh Farm's price and loss-minimizing quantity, labeled P; and Q, respectively The average variable cost curve, labeled AVC b. Suppose that newspapers have recently reported that excessive soybean consumption can cause health problems. As a resut, wil the new loss-minimizing quanty for Fresh Fam be grester than less than, ar equa to Op in the short run? Explain. c. Is the long-run market supply for soybeans perfectly inelastic, relatively inelastic, unit elastic, relatively elastic, or perfecty elastic? d. Assume now that the soybean market is in a long-run equilibrium and that fertilizerS used in soybean production cause water…
Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
Required information The following figure shows the costs for a perfectly competitive producer. AVC, ATC, MC $45 40 35 30 25 201 15 10 5 0 C 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period Refer to the above figure to answer this question. If the price of the product is $35, what is the profit-maximizing output?
Assume soybeans are produced by a perfectly competitive, constant cost industry. Fresh Fam is a typical frm producing soybeans and is cumently operating with an economic loss. a. Using a correctly labeled graph for Fresh Farm, show each of the following in the short run i. The marginal cost curve and average total cost, labeled MC and ATC, respectively ii. Fresh Farm's price and loss-minimizing quantity, labeled P; and Q, respectively. iii. The average variable cost curve, labeled AVC b. Suppose that newspapers have recently reported that excessive soybean consumption can cause health problems. As a resut, wil the new loss-minimizing quanty for Fresh Fam be grester than less than, ar equa to Op in the short run? Explain. c. Is the long-run market supply for soybeans perfectly inelastic, relatively inelastic, unit elastic, relatively elastic, or perfecty elastic? d. Assume now that the soybean market is in a long-run equilibrium and that fertilizers used in soybean…
ntQu102spring22 (1) - Protected View • Saved to this PC - O Search (Alt+Q) Faridatu Pafadnam References Mailings Review View Help t Defender Advanced Threat Protection and it hasn't detected any threats. If you need to edit this file, click enable editing, Enable Editing 3) Consider the following short-run cost curves for a profit-maximizing firm in a perfectly competitive industry. MC SRATC 4 SRAVC 1.5 1 100 200 300 400 Quantity FIGURE 1 a) Refer to Figure 1. If the current market price is $6, what is the profit-maximizing output for this firm? b) Refer to Figure 1. If the price is $6 and the firm is producing at its profit-maximizing output, then what are total costs for the firm? c) Refer to Figure 1. If the market price is $1, the firm will produce short run. units of output in the d) Refer to Figure 1. If the market price is $2, what the firm will do? Price $
Laura’s cleaning service is a profit-maximising, competitive firm. Laura cleans awhole house for $156. Her total cost each day is $1680, of which $480 is a fixed cost. She cleans 8 houses a day.(a)Should Laura shutdown her business in the short-run, assuming that she cannot recover her fixed cost?(b) Should she exit in the long-run?