MCATC11020304050 607080QuantityAssuming constant return to scale and same cost functions for all firms in this industry, this firm'seconomic profit is equals to $ at the current demand curve in short run.O 60Price and Cost (dollars)2.

A firm experiences constant returns to scale when long run average total cost remains constant as…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The economic profit of a perfectly competitive firm is less than its total revenue equals its total revenue is greater than its total revenue O is less than its total revenue if its supply curve is inelastic and is greater than its total revenue if its supply curve is elastic. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
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Use the following data to analyze the condition when the product proce is set at $32 Assume the following unit cost data are for a purely competitive producer. See table below: Required: A. What will be the profit maximizing or loss- minimizing output? B. How much would be the economic profit that the firm will realize per unit of output? C. How much would be the product price for the firm to be at a shutdown position?
The firm depicted in Figure 7-10 is currently at point F producing 200 units of output per day. If it decides to increase its output level to 375 units, then it will Q 40 Figure 7-10 Dollars per Unit ATC LRATC ATC 200 375 Units of Output O adjust from point F to point G in the short run O be unable to adjust to point G in the short run because some inputs are fixed O be unable to adjust to point G in the long run because no inputs are fixed O be unable to adjust to point H in the short run because some inputs are fixed O adjust from point F to point H in the long run
Price (S) AB UD A) $(60-C) × 3 Quantity B) $(60-D) x 2 OC) $(60-B) × 5 OD) $(60-B) × 4 O E) $(60 - A) × 5 MC ATC Refer to the figure above, which indicates the short-run cost data for a typical firm in a perfectly competitive industry. If the price faced by a perfectly competitive firm is equal to $60, then this firm will earn profits of......if it maximizes profits. p = $60 AVC
Price (dollars) 8 7 6 5 4 3 2 1 0 80 O increase; increase; increase O remain same; remain same; decrease O decrease; remain same; decrease O decrease; decrease; decrease Short-run Short-run MC AC 100 110 The graph above shows the cost curves for a firm selling in a perfectly competitive market. If the market demand falls due to a recession, the long run equilibrium price will output will ., the firm's and industry output will Output (per day) Long-run AC
Exhibit 21-9 Cost MC, ATC₂ MC1 ATC1 MC 3 PI ATC 3 Quantity of Output Refer to Exhibit 21-9. Let MC 1 and ATC 1 represent the initial cost curves of a peanut butter producer. In which of the following cases is it most likely that the firm's curves will shift leftward to MC 2 and ATC 2? O a. The market price of peanuts decreases. O b. The market price of peanuts increases. O c. The government lowers taxes paid by peanut butter producers. O d. The market price of peanuts remains constant.
Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm's total fixed cost is $600 and its total variable cost is $400. If the price of the product is $8 per unit, the firm should produce O less than 100 units of output. O The amount is impossible to determine from the information given. O 100 units of output. O more than 100 units of output.
If a graph is used to compare total revenue and total cost of a perfectly competitive firm, then the horizontal axis of the graph will represent the and the vertical axis will represent OA. price, measured in dollars; quantity of goods produced O B. total costs measured in dollars; quantity of goods produced O C. quantity produced; both total revenue and total costs, measured in dollars. O D. quantity produced; total revenue and total variable costs, measured in dollars.
. The table represents the hourly output and cost structure for a local pizzeria. The market is per- fectly competitive, and the market price of a pizza in the area is $10. Total costs include all opportu- nity costs. Fixed costs equal zero. Total Hourly Output and Sales of Pizzas Total Hourly Variable Cost ($) 1 9. 2 11 12 14 5 18 6 24 7 32 8 42 54 10 68 a. Calculate the total revenue and total economic profit for this pizzeria at each rate of output. b. Assuming that the pizzeria always produces and sells at least one pizza per hour, does this appear to be a situation of short-run or long-run equilibrium? c. Calculate the pizzeria's marginal cost and mar- ginal revenue at each rate of output. Based on marginal analysis, what is the profit-maximizing rate of output for the pizzeria?
Figure 13-3 Refer to Figure 13-3. Curve D intersects curve C O 1) where the firm maximizes profit. 2) at the minimum of average fixed cost. 3) at the efficient scale. 4) where fixed costs equal variable costs. 12 Quantity
Price and costs (dollars) 20 10 L O 10 20 MC O always. ATC MR 40 30 Quantity (per day) The figure above shows a perfectly competitive firm. In the short run, the firm will shut down only if the AVC of producing 10 units is more than $20. only if the AVC curve reaches its minimum before 10 units are produced. only if the AVC of producing 10 units is less than $20.

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MC ATC 1 10 20 30 40 50 60 70 80 Quantity Assuming constant return to scale and same cost functions for all firms in this industry, this firm's economic profit is equals to $ at the current demand curve in short run. O 60 Price and Cost (dollars) 2.