Immagine a firm in a competitive market comes up with a new production method, which halves its marginal cost at all levels of Q. Fixed costa are unaffected. Which of the following statements are true?  1. The firm's AC at all levels of Q would be Lower. 2. The firm would extract an innovation rent from selling at the market price with lower costs. 3. The firm's point of minimum AC would be a higher level of Q. 4. The innovation would immediately cause the market price to drop.

A profit-maximizing firm decides to shut-down production in the short-run. Its total fixed cost of production is $100, i.e. TFC = $100. Which of the following statements is true?   a If the firm produced, the firm's revenues would have been lower than $100.  bIf the firm produced, the firm's total variable cost must be lower than $100. cIf the firm produced, the firm's losses would have been higher than $100. dIf the firm produced, the firm's total variable cost would have been higher than $100.

If the market price of a product is $10 that lie between the minimum average variable cost $8 (AVC) and minimum average total cost $15 (ATC) of a firm, that firm will:___________ a) always shut down. b) always continue to produce.c) produce in the short run but shut down in the long run. d) produce in the long run but shut down in the short run. e) make positive economic profits.

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.

I need help solving problem 4 sections a-d.   Please note that this is not graded work. I obtained this question from an old text book to help me practice problem sets. Do let me know if you have additional questions.

A manufacturer of electric switches in a competitive industry has a fixedmonthly cost of $50,000, total monthly variable cost $100,000, and marginalcost of $5. What is the profit if the monthly production is 100,000 units?Assuming that prices of switches fluctuate from month to month, what is the lowest price the manufacturer can accept in order to stay in business in the long run and in the short run. Will those prices be the same?  Show detail work

Consider a kettle firm A in a perfectly competitive market. Table 1 shows the quantity produced per hour (Q) and the total cost (TC) in the short run. Quantity 0 12345C70 2 6 8 Total cost 17 30 40 55 75 100 130 165 210 Fixed cost 17 17 17 17 17 17 17 17