Refer to Figure 12-10. If the price is less than $6, the firm shouldshort run andin the long run.OA. shut down; exit the marketOB. continue operating, stay in the market and expandOC. continue operating; exit the marketOD. exit the market; exit the marketin theRevenueand cost(dollarsper unit)$20111060J200 250300ATCAVCMRQuantity

The study and analysis of commercial financial concerns using abstract economic ideas and concepts…

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 C. continue operating; exit the market OD. exit the market; exit the market in the Revenue and cost (dollars per unit $20 11 10 6 200 ATC AVC Quantity

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 C. continue operating; exit the market OD. exit the market; exit the market in the Revenue and cost (dollars per unit $20 11 10 6 200 ATC AVC Quantity

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...

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What two lines on a cost curve diagram intersect at the zero-profit point?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
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?
Danilo and his wife operate a restaurant where they sell all their meals for $14.00 each. The markup on each meal is $5.00 and overhead expenses are 19.00% of cost. a. How much does it cost them to make each meal? $0.00 Round to the nearest cent b. What is their operating profit per meal? 50.00 Round to the nearest cent c. Calculate the break-even price. Round lo the nerert rent
ATC Price MC AVC 8 4 10 11 12 13 Quantity The graph shows the cost curves of a firm in a competitive industry. Assume that all frms in the industry have identical cost curves. The price in this market in the long run is S K 11/21 > o SUBMIT ANSWER 8OF 21QUESTIONS COMPLETED MacBook Pro
Figure 8-1 $30 MC ATC 20 -AVC 10 4 6. Quantity What is the firm's total cost in Figure 8-1 when it produces four units? 11 15 60 75 Price
Price and cost $4.00 3.20 2.40 1.60 0 Questraq; not sugamon Isnigiem sunsven lang jam neris MC ITAALS 25006 DMC Sorberg in ATC AVC HONDE SOM= 15152 850 1,700 MR 2,550 D Quantity a. If Elijah produces at the profit-maximizing level of output, how much is his total revenue? How much is his total cost? Briefly explain your calculations. a. How much economic profit is Elijah earning? Briefly explain your calculation.
Suppose a perfectly competitive firm is operating in short run. The information of MR, Q,ATC and AVC are 15 taka, 60 unit, 45taka and 35 taka respectively. Calculate firm’sprofit/loss and total fixed cost. From these calculations and based on all the giveninformation, can you conclude about the firm’s decision in short run? Explain your reasoningwith the help of a suitable diagram. Show all the relevant information in yourdiagram.[Q=profit maximizing output and MR=marginal revenue]
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off PERFECT COMPETITION ASSUME FIXED COSTS = $62 INDIVIDUAL FIRM Quan Tot Fix Varia Aver Aver tity al ed ble Margi nal Cost Co Cos Cost st t 10 20 30 40 50 60 70 80 90 100 28 48 64 Text Predictions: On 82 104 130 162 202 262 342 1. Complete the table 2. 3. 4. 5. age age Fixed Varia Cost ble Cost Price 1 =$2.0 0 Margi nal 2. Accessibilite Good to g reven ue Price Price Price 2 3= =$2.2 $3.00 = $3.3 4 5 Margi 5 Marginal nal Reve nue reven ue Margi nal Reve nue Aver age Total Cost Graph the AVC, ATC, AFC, & MC curves Superimpose the MR Curves on your graph. At each price (P1, P2, P3, P4) What output should be produced? What is the profit at each output If P4 is the prevailing price, what, if anything happens to this industry in the long run?
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Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?