The table represents the demand (quantity at each price) for and the total cost to produce a firms product. Complete the last three columns of the table above.  a. Based upon the data in your table, how many products will the firm produce and at what price will it sell it product to maximize profit? Will the firm make an economic profit? If so, how much?  b. In what type of market structure does this firm participate? How did you decide this

Q: Price Quantity Marginal Cost 60 1 30 55 2 30 50 30 45 4 30 40 30 35 30

A: A profit maximizing firm should produce up to that level of output where price = marginal cost. If…

Q: A competitive market system is efficient. Discuss and explain this statement in detail. Your answer…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: Complete table. B. Applying the rule of profit maximization, if the product market price of $35,…

A: A perfectly competitive firm is a price taker, which means it takes the price set by the market…

Q: Are the following statements true or false? Select the best answer. Statement 1: Allocative…

A: Productivity and allocative efficiency is achieved in Perfect competition market structure.…

Q: Which market offers higher consumer surplus and why? The perfectly competitive firm or the monopoly…

A: In perfect competition, there are large number of buyers and sellers and each firm sells identical…

Q: Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are…

A: a) Marginal cost is expanding/increasing as an ever-increasing number of variable input sources are…

Q: Suppose the total cost of producing widgets can be described by Y=10X²+50X+100 where Y is the total…

A: Given: Total cost function (TC) y = 10x2 + 50x + 100 Competitive market The condition of equilibrium…

Q: use relevant diagrams as well as microeconomic theory, discuss why competitive firms stay in…

A: In the long run, a firm in a perfectly competitive market will only make a normal profit(zero…

Q: The number of firms in an industry is not always a good indicator of the extent to which that…

A: The number of sellers in an industry determines the market share of the firm. A large number of…

Q: How much should the firm produce to maximize its profit? What is the firms AR? What is the firms…

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…

Q: Why do economists believe that economic profit is the more accurate measure of a business success?…

A: Accounting profit only considers the cost that has actually happened, but economic profit considers…

Q: Assume firms decide to enter the market, how will this affect market price and quantity in the long…

A: In a market with perfect competition, every manufacturer offers the same products or services. There…

Q: true or false The rational and profit maximizing firm will choose to operate in Stage 1 or Stage 2…

A: Total product is defined as the total amount of output produced by employing given amount of input.…

Q: HARRY: We should examine whether our company’s productivity—gallons of potion per worker—would rise…

A: To find out if the company's production has increased, equating its marginal revenue with its…

Q: How much should a firm sell of a particular product in order to maximize profit? What factor does it…

A: A firm should maximize profits and bring in the output level, where there would equilibrium point…

Q: State what market structure exists in Jamaica since the early 2000s. Explain if excess profit will…

A: Since early 2000s monopolistic competition exists in Jamaica.

Q: What evidence of economic competition do you see in your everyday life? what evidence do you see on…

A: Economic competition refers to the situation where the firms in the economy compete with each other…

Q: Explain how market competition affect the mark –up in price setting and the fraction of the marginal…

A: If there is market competition then setting mark-up price will be affected a lot. Let's understand…

Q: What are the advantages of pure competition?

A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…

Q: Small “Mom and Pop firms,” like inner city grocery stores, sometimes exist even though they do not…

A: “Mom and Pop firms” is a small independent business entity where the ownership and operations are…

Q: What incentive compensation needed by employees to remain competitive within the industry?

A: The reward in the form of cash paid to employees for the service that they provide is defined as…

Q: In __________ market structure, the firm's are price maker

A: Firms can be either price maker i.e ( having full control over setting prices) or they can be price…

Q: You are running a chocolate factory and need to decide on the price to sell the chocolate as well as…

A: Profit maximiser firms decide to charge price and output determination is set when marginal cost and…

Q: Outline the characteristics of a perfect competition market that makes it different from an…

A: "In an economy there are different market structures. Market structure depicts how various…

Q: Economic profits and losses: a) are the expected outcomes of a decrease in dollar votes and an…

A: The firm would result in the production of the goods and services. The firm would result in the…

Q: Use the table below to answer the following questions: Costs Revenues Price ($) Total Quantity…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The decision to continue competing in a market depends upon the answers to the following questions…

A: To sustain in the market ones have to bear the fixed cost in the short run as we know.  Compete with…

Q: Agriculture in India is mostly characterized by Perfectly Competitive Market! What are the…

A: Perfectly competitive market structure is the market structure in which there are large number of…

Q: Give an example in the marketplace that describes the principles of the free market (perfect…

A: Prices of goods in competitive market are determined by free market forces of demand and supply.…

Q: The data in the following table give information about the price P (in dollars) for which a firm can…

A: As we know , that profit is the difference between total income and total cost . Whereas Marginal…

Q: If the producers of rice wants to maximize profit up to what level of output will it produce and at…

A: The allocative efficiency could be achieved by equating marginal private cost with marginal private…

Q: Dave's Donuts sold 1,000 donuts. Total revenue was $400, and the cost of producing the 1,000 donuts…

A: The amount of money received by businesses from the sale of their products is referred to as total…

Q: Do you think firms really try to maximize profits? Do firms (especially small ones) know what prices…

A: Economist generally assume that firms act as profit maximisers. Economists don’t think there’s…

Q: In the long run, in a competitive economy, companies use resources until the extra or marginal…

A: (Q) In the long run, in a competitive economy, companies use resources until the extra or marginal…

Q: industry. Total product is the Q of production. Total product TFC TVC TC AFC AVC ATC MC 1 40 95 75…

A: In a competitive market there are large number of firms producing identical products thus acting as…

Q: In competitive markets, there are many small firms with each firm unable to influence the market…

A: Given: Price = $20 TC = 50 +2Q + 3Q2 MC= dTC/dQ = 2+6Q

Q: why competitive firms stay in business if they make zero profit?

A: First it should be clear that zero economic profit means that total Total Revenue is equal to the…

Q: How does underutilization of resources leads to Surplus? Why is it important to the organization to…

A: In an economy, surplus refers to the situation when the demand for a specific product or item is…

Q: Evaluate and explain the following statement: The market system is a profit-and-loss system.

A: ‘Market’ refers to a place where goods are bought & sold. The goods are bought & sold at…

Q: Evaluate the view that the main goal of firms will always be profit maximization.

A: Profit maximization is a condition when firms want to maximize their profit.  It is calculated by…

Q: Can you name five examples of perfectly competitive markets? Why or why not?

A: Perfect competitive market is a market with large number of buyers and sellers exists and firms are…

Q: Uncle Brandon's farm has costs and revenue as seen in the graph. What is Uncle Brandon's…

A: A competitive firm maximises profit by producing that level of output at which marginal cost equals…