What level of output should this firm produce in the short run? What price should this firm charge in the short run? What is the firm’s total cost at this level of output?

13. Firms in Competitive Markets The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than average total cost. The price of fertilizer must be less than marginal cost. The price of fertilizer must be equal to average variable cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. Prics and Cast MC Firm Demand Quantity Market Quantity (?) If firms in the market are producing output but are currently making economic losses, market, and indicates the corresponding supply curve. illustrates the present situation for the typical firm in the Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check…

Q3

Brody's firm produces trumpets in a perfectly competitive market. The table below shows Brody's total variable cost. He has a fixed cost of $240, and the price per trumpet is $60.-Calculate the average total cost of producing 6 trumpets. Show your work. -Calculate the marginal cost of producing the 11th trumpet. -What is Brody's profit-maximizing quantity? Use marginal analysis to explain your answer. -At the profit-maximizing quantity you determined in part (c), calculate Brody's profit or loss. Show your work. -Brody also produces saxophones at a loss in a perfectly competitive market. Draw a correctly labeled graph for Brody's firm showing the following at a market price of $200. -Brody's profit-maximizing quantity of saxophones -Brody's loss, completely shaded   Quantity Total Variable cost 6 $120 7 $145 8 $165 9 $220 10 $290 11 $390

“That segment of a competitive firm’s marginal-cost curve that lies above its average-variable-cost curve constitutes the shortrun supply curve for the firm.” Explain using a graph and words.

V4

The following graph shows the long-run supply curve for persimmons. Place the orange line (square symbol) on the following graph to show the most likely short-run supply curve for persimmons. (Note: Place the points of the line either on W and R or on W and M.) PRICE (Dollars per pound) 24 20 16 6 2 co 4 0 0 W 4 M R Long-Run Supply 2 6 8 10 QUANTITY (Thousands of pounds of persimmons) 12 Short-Run Supply ?

Suppose the cost of renting a snowy bus were to fall from $30 per hour to $20 per hour. What do you expect would happen in the short-run (stage 1 equilibrium) to (a) the number of cones produced by each snowy bus; (b) total production of cones in the market, and (c) economic profits of snowy bus businesses? Briefly explain (you don't need to do any calculations, just explain inwords).

Consider the perfectly competitive market for steak (a normal good). Starting from long-run equilibrium, show graphically what happens in the short and long run to q. Q. P, and r in the market for steak (in comparison to the starting point) if income increases. Briefly explain.

113. Subject  :- Economy