The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 10.5 Price B P₁ D A E MC 0 Q1 Q₂ Quantity MC: Marginal cost curve MR: Marginal revenue curve. ATC: Average-total-cost curve AVC: Average-variable-cost curve ATC AVC MR Assume the price facing the firm in Figure 10.5 is P1. Which of the following statements is true? The firm should shut down because price per unit received is less than average total cost. Total revenue for the firm is area OBDQ1- Total cost for the firm is area OP EQ- The firm's total revenue is more than sufficient to cover its variable costs, so it should remain in operation. The firm should produce Q2-

The diagram at the right shows the various short-run cost curves for a perfectly competitive firm. a. Based on the diagram, and the assumption that the firm is maximizing its profit, fill in the following table. The last three columns require only a "yes" or "no". Market Firm's Is Price > Is Price > Are Price ($) Output ATC? AVC? Profits Positive? $4 $5 $7 $8 $10 Price ($) $1Q $8 $7 $5 $4 135 MC 155:170190 210 Output ATC AVC

Perfect competition is an economic term that refers to a theoretical market structure in which all suppliers are equal and overall supply and demand are in equilibrium. Figure 23. 1 shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. Figure 23.1 Cost, pnce (Rand) B. R800 C. R960 20 D. R720 200 60 80 Output per day 100 MC AC What is the total revenue of the profit-maximising firm in the short run? A. R2 000 Price AVC @ K

Graph below represents the cost structure of an individual firm in a perfectly competitive market. ATC MC 50 40 e AVC 30 20 10 8 10 11 12 Quantity (per day) a. Write down the break-even and the shut-down points (both corresponding quantities and prices) for this firm on the table below. quantity (q) Price (P) Break-even Point Shut-down Point b. If the price in this market is $50, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output. Show your calculations If the price decreases to $25. C. i. Considering the short-run: would firm earn positive or negative profit in this new scenario? Would it continue operating or stop production? Explain your answer ii. Considering the long-run: would new firms enter to the market or would existing firms exit from it? What would happen to the market equilibrium?…

Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost schedule in the table below. Apex’s product sells for $200 per unit.                 Quantity (units) 0   1     2     3     4     5      6    7     8      9      10Total Variable Cost (TVC) 0 100 180 220 300 390 500 640 800 1000 1250Answer the following questions:a. What is the profit-maximizing level of output? Calculate Apex’s profit.b. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?c. If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?d. Comment on your answers to parts (2) and (3

MC ATC 24 P = MR 20 18 4 100 350 500 700 q Bales of hay from the graph of a perfectly competitive firm above, answer the following questions:# 1. What is the profit maximization level of of output? ( 2. What is the value of ATC at the best level of output? 3. what is the amount of profit the firm makes at that level of output? show your calculations. 4. At what price firm will breakeven В I

what is the profit-maximizing output quantity?

The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm.   Round your answers to 2 decimal places.  Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 /   /   /   $ 100   1 $    $    $    130   2          150   3          180   4          220   5          270   6          330   7          440     a. Complete above the table. b. What is the break-even price?    Break-even price: $        c. What is the shutdown price?    Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss?        Quantity:  ;   (Click to select)   Loss   Profit  : $ e. If the market price of the product is $110, what quantity will Marshall’s Meats produce? What will be its profit or loss?     Quantity:  ;   (Click to select)   profit   loss  : $

The cost data in the following table are for Marshall’s Meats, a perfectly competitive firm.   Round your answers to 2 decimal places.  Output Average Variable Cost AverageTotal Cost MarginalCost Total Cost 0 /   /   /   $ 95   1 $   $   $   115   2       125   3       150   4       200   5       270   6       350   7       450     a. Complete above the table. b. What is the break-even price?    Break-even price: $       c. What is the shutdown price?    Shutdown price: $ d. If the market price of the product is $50, what quantity will Marshall’s Meats produce? What will be its profit or loss?        Quantity: ;           : $ e. If the market price of the product is $100, what quantity will Marshall’s Meats produce? What will be its profit or loss?     Quantity: ;           : $

Consider a firm selling apples and the market for apples is perfectly competitive. The following table presents the costs of a firm. Use the given information to answer questions 35 - 42. Q AFC AVC ATC MC TC 1$300 $100 $400$100$400 2 150 75 225 50 3 100 70 170 60 4 75 72.5 147.5 80 5 60 80 140 11O| 6 50 90 140 140| Find the market price such that the firm's maximized profit = $0 Answer: The firm's maximized profit is $0 if the market price = $.