Tulip growing is a perfectly competitive industry and all growers have the same costs. The market price of tulips is $18 a bunch and each grower maximizes profit by producing 500 bunches a week. Average total cost of producing tulips is $23 a bunch and average variable cost is $16 a bunch. Minimum average variable cost is $8 a bunch. Calculate each grower's economic profit or loss in the short run. In the short run, each grower is incurring an economic loss of $ 1 a week. >> If the firm incurs an economic loss, select loss in the dropdown window and do not enter a minus sign.

A strawberry farm operating in a perfectly competitive market is operating below the break-even point. What is the best thing to do in the short run?   Group of answer choices   onsider shutting down or stopping production   Borrow money and buy more capital equipment.   Hire more workers.   Increase the price of its strawberries.

Consider the following data: equilibrium price = $7.50, quantity of output produced 100 units, average total cost = $9, and average variable cost = $8. What will the firm do and why? = a. Shut down in the short run, because price is below average variable cost. b. Shut down in the short run, because price is below average total cost. c. Continue to produce in the short run, because price is greater than average variable cost. d. Continue to produce in the short run, because firms are always stuck with having to produce in the short run.

Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly competitive market and the market price for a pie is $18, how many pies should Alina's Apple Pies produce  and what is the economic profit or loss per unit?

Price and Cost 961 The graph below contains the relevant cost curves for a perfectly (or purely) competitive firm. The graph below is not graded. You can move point A to help you answer the questions. 1000 900 800 700 600 500 400 300 200 100 0 0 MC Quantity ATC AVC AFC 100 200 300 400 500 600 700 800 900 1000 860 The price of the good must be above what point for the firm to earn positive economic profits? Number $ 600 What is the shutdown price for this firm? Number $400

QUESTION 10 Jack sells water bottles. Assume the market for water bottles is perfectly competitive. Jack sells his water bottles at the market price of $9.00. At the profit-maximising output level of 51 water bottles, Jack's average total cost is $4.40 per water bottle. The minimum average variable cost is $3.90 per water bottle. Answer the following questions: a. Jack's economic profit or loss is decimal places (ie: to the nearest cent). (use a negative value if a loss). Answer in dollars, rounded to two b. State whether the following statement is true or false: "At the profit-maximising quantity, Jack is making an economic profit of $4.60 per water bottle." Type T for true, or F for false c. State whether the following statement is true or false: "Jack should shut down if the market price is $3.85 per water bottle." Type T for true, or F for false

A firm sells its product in a perfectly competitive market where other firms charge a price of $95 per unit. The firm's total cost are TC-20+5Q+Q². a. How much output should the firm produce in the short run? b. What price should the firm charge in the short run? c. What are the firm's short run profits? d. What do you expect to happen in the long run?

No written by hand solution

The table shows cost data for a firm that is selling in a purely competitive market. Average Average Output Variable Cost Total Cost 10 12 14 16 20 $5.00 4.00 4.75 5.75 9.00 $15.00 13.00 11.50 9.00 12.00 Marginal Cost $3 4 6 9 14 Refer to the above cost table. If the price of the product is $9, what output level will the firm produce?

Tulip growing is perfectly competitive and all growers have the same costs. The market price is $25 a bunch, and each grower maximizes profit by producing 2,000 bunches a week. The average total cost is $20 a bunch, and the average variable cost is $15 a bunch. The minimum average variable cost is $12 a bunch. Please draw graphs where necessary.                                                                 What is the economic profit that each grower is making in the short run? What is the price at the grower’s shutdown point? What is each grower’s economic profit at the shutdown point?