PriceP₁P2P3PAQuantityMCIf the short-run price is., the perfectly competitive firm willA) P1; break evenB) P2; break evenC) P3; earn positive economic profitD) P4; earn positive economic profitE) P2; negative economic profitAVCATC

The objective of the question is to determine the economic outcome (break-even, positive economic…

Answered: Price P₁ P2 P3 PA Quantity MC If the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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MC АТС $25.00 AVC $19.50 -- $15.00 $12.50 - - 30 40 50 60 Output (Q) For the firm shown in the diagram above, its Long Run Supply Curve is its curve for any price greater than ATC; $19.50 MC; $12.50 AVC; $12.50 MC; $19.50
Consider the following graph and choose the correct option: MC $18 E АТС AVC 14 12 B - 10 Minimum average variable cost 3 3.5 4 5 Quantity of tomatoes (bushels А None of the answers are correct В The short-run supply curve of this firm is the portion of the MC curve starting at point C The short-run supply curve of this firm is the portion of the MC curve starting at point A The short-run supply curve of this firm is the portion of the MC curve starting at point B
Sally owns and operates a pizza house. The diagram shows the cost and revenue curves for the pizza house. Initially, Sally sets her price to maximise profits. Corts Revenue ( # G : Quantity per day (1) Which market structure is this? Explain. (i) Calculate the profits made by Sally. Is this a long run or short run situation? Explain. (i) Calculate the change in total profit if Sally changes her objective from profit maxim Attach File Browse Content Collection Browse Local Files revenue maximisation. You are advised to show your working
Land of Many Lakes (LML) sells butter to a supermarket in New York. Since the market for butter is usually considered to be perfectly competitive, LML company Select one: a.can choose quantity of butter that it produces but not the price at which it sells its butter. b.cannot choose either the price at which it sells it butter or the quantity of butter that it produces. c.can choose both the price at which it sells its butter and the quantity of butter that it produces. O d.can choose the price at which it sells its butter but not the quantity of butter that it produces.
n A seller in a perfectly competitive market can increase his profit in the short run by: Increasmg his selling price above the market price 6 Decreasing his selling price so he sells more output Conducting an effective advertising campaign for his product d None of the above
Costs MC (per pound) ATC AVC 3.00 2.25 1.50 150 180 225 Quantity (pounds) The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the following questions. Assume the market price is $3 per pound. a. What is the lowest price at which the apple producer will supply output in the short run? $ per pound. b. What is the firm's profit-maximizing (loss-minimizing) output? c. Is the firm earning a profit or a loss? loss profit
MC АТС $25.00 AVC $19.50 $15.00 $12.50- 30 40 50 60 Output (Q) The Short Run Supply Curve for the firm shown in the diagram above is its MC curve for any price greater than $12.50 $25.00 $15.00 $19.50
Dollars A BC O Hi K O G O Multiple Choice I ELM N MC MR Quantity Refer to the diagram. At the profit-maximizing level of output, the firm will realize ATC Demand an economic profit of A-B-H-J. a loss of GH per unit. an economic profit of A-C-G-J. a loss of JH per unit.
Please solve Fast i give 2 like Which of the following is not true according to Figure 1? Hide Transcribed Text Figure 1: Cost and Price AC : Average Cost, AVC: Average Variable Cost, and MC: Marginal Cost A) The firm earn a zero economic profit when it produces 40 unit at the price of $5.7 per unit. B) The minimum acceptable price (the shut-down point) is $4.3 per unit. C) The firm's supply curve is its MC curve above minimum of AVC. D) The firm earns an economic profit when the price exceeds $4.3 per unit.
Refer to Figure 12-10. If the price is less than $6, the firm should short run and in the long run. OA. shut down; exit the market OB. continue operating, stay in the market and expand OC. continue operating; exit the market OD. exit the market; exit the market in the Revenue and cost (dollars per unit) $20 11 10 6 0 J 200 250 300 ATC AVC MR Quantity
Help Save & Exit Submit The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that produces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) 15 Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $1 20 2.00 1.25 25 2.45 1.49 30 3.55 4.00 1.83 35 2.14 40 5.50 6.00 8.50 2.56 45 2.94 50 3.5 Instructions: In part a, enter your answer as a whole number. In parts b, c and d, round your answers to 2 decimal places. a. If the market price of children's mittens is $6.00 per pair, how many pairs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? 24 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? p..........: d.…
E4 A Firm ís short-run total cost function is: T C = 4q2 - 2q + 7 The Firm sells in a perfectly competitive market and the ruling price is p = 50 (a) Find the output level that maximizes profits. Show you have a maximum. (b) Find the output level that minimizes average cost, AC. Show you have a minimum. (c) Sketch the graphs of total cost and total revenue with the same axes (d) Sketch the graph of the profit function.

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Price P₁ P2 P3 PA Quantity MC If the short-run price is. , the perfectly competitive firm will A) P1; break even B) P2; break even C) P3; earn positive economic profit D) P4; earn positive economic profit E) P2; negative economic profit AVC ATC