When the market price is equal to the minimum value of the average variable cost curve: a) the firm covers its fixed costs of production  b) marginal cost is greater than average variable cost  c) average cost is less than average variable cost  d) marginal revenue equals average variable cost

Q: A firm’s marginal cost curve above the average variable cost curve is equal to the firm’s individual…

A: The marginal cost defines the cost that a producer incurs to produce an additional unit. After a…

Q: Please explain every part in details  A competitive firm has the following short-run cost function:…

A: A competitive firm is an economic unit that produces goods or services and competes in the market…

Q: Alpha Limited is a perfectly competitive firm. The total cost (in dollars) of producing Q per day is…

A: Total cost is the sum of fixed cost and variable cost.  Fixed cost remains same at each level of…

Q: Douglas Fur is a small manufacturer of fake-fur boots in Chicago. The following table shows the…

A: Average total cost (ATC) is calculated by dividing total cost by the total quantity produced.…

Q: suppose in the short run the amount of machines she has is fixed at 27. How many mixers should she…

A: The production function is given byHere, y is the quantity of baklava produced, and x1 and x2 refer…

Q: The following are the cost information of a typical ice tea company in an industry with 100 firms.…

A: Answer -      Long run equilibrium - In long run all the variables are free to vary and long run…

Q: In the long run, fixed costs are

A: Total Cost: The total cost of a commodity refers to the sum of fixed costs (FC) and variable cost…

Q: The above cost curves are for a firm producing flour, which is measured in pounds.  1. What is the…

A: A cost curve is a graph that shows the costs of production as a function of the overall quantity…

Q: High total revenue does not necessarily mean  maximum  profit. Explain this stateme

A: Below are the formula for the TR and profit: TR = Price x Quantity Profit = TR - Total Cost

Q: A rational firm operating in a perfectly competitive market has its demand and total cost function…

A: Total Cost Function : TC=50+25Q-40Q2 Total Cost can be decomposed into two parts: 1) Total Fixed…

Q: Graphically show the relationship between the total fixed cost, the total variable cost, and the…

A: Total Cost = Total Fixed Cost + Total Variable Cost

Q: Long-run average total cost (Multiple Choices )     might have an upward-sloping segment that…

A: Long run average total cost is the long run cost per unit. Economies of scale refer to the situation…

Q: n the short run a firm can minimize costs by shutting down. minimize costs by going out of business.…

A: The firm will continue to produce in the short run as long as it is able to recover the variable…

Q: A firm has the following revenue and cost functions. TR = 60 Q – Q2 TC =1⁄2Q2 +30Q +30 Determine…

A: Profits = Total Revenue - Total Cost Profit is maximium when: marginal revenue = marginal cost

Q: Calculate the economic profit at the profit-maximizing quantity you identified in part (a). Show…

A: An economic profit or loss is the difference between the revenue gained from the sale of an output…

Q: Find the marginal profit. C(x)=4x^2; R(x)=x^3+5x+15

A: Profit=Revenue-CostProfit=(x3+5x+15)-(4x2)Profit=x3-4x2+5x+15

Q: If economic profit is $5000, explicit cost is $1200, total revenue is $7000 Calculate the value of…

A: The given information is as follows:- Economic profit of the firm = $5000 Explicit costs = $1200…

Q: Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his…

A: "A perfectly competitive market structure is the one which consists of many buyers and sellers and…

Q: Suppose a firm faces the following cost function: C(q) = 36 + 16q – 8g² + 2q° -

A: Given cost function:C(q)=36+16q-8q2+2q3

Q: The marginal cost curve of a firm is MC = 6y + y2 .

A: Answer: Given that:     The marginal cost curve of a firm is MC = 6y + y^2 . Total variable costs to…

Q: You sell items. Your marginal revenue and marginal cost are given by the formulas:  MR (q)=…

A: The firm would involve the cost of the production of the goods and services to produce goods and…

Q: The figure below displays the short-run marginal cost and short-run average cost curves for a firm.…

A: In short run ,  In perfect competition , firm will produce where P = MC  P is the price  MC is the…

Q: Sergio Lopez is a publisher of Latin American poetry.  His fixed cost is $525, and the cost to…

A: Fixed cost is $525, and the cost to produce each individual copy of his book is $3.50.   A linear…

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: A firm with fixed costs produces at the lowest point on its U-shaped average variable cost curve. If…

A: Fixed costs are business expenses that are not dependent on the level of goods or services produced…

Q: Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: What is the value of the firm's average fixed cost (AFC)of producing 10 units of output?   What is…

A: The average fixed cost refers to the output’s per unit fixed cost. The average variable cost refers…

Q: Suppose rocking chair manufacturing is a perfectly competitive industry in which there are 1,000…

A: Given a price of $1,000, the firm in the perfectly competitive rocking chair industry would optimize…

Q: Short-run average total cost      shows the minimum average total cost for each level of output…

A: Answer: Correct option: option 4 (might have a flat portion that indicates a constant average cost…

Q: The intersection of a firm's marginal revenue and marginal cost curve determines the level of output…

A: A firm maximises its profit when the marginal revenue is equal to the marginal cost (MR=MC).

Q: Suppose a firm faces a short-run total cost function of SRTC = 20 + 3Q + 2Q2 . a) Write the firm’s…

A: Marginal cost is the additional cost incurred in producing an extra unit of a good. Average total…

Q: You operate a business subject to Perfect Competition.  The price of the good is P =40, your…

A: Given, Price (P) = 40 MC = 10 + 0.05Q Fixed costs = 5000

Q: The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost…

A: We can see that one of the axis we see the cost and profit is given, the verticle axis.Here, the…

Q: Variable costs usually change as the firm alters the quantity of output produced. True False

A: A variable cost  may be a company expense that changes in proportion to what proportion a…

Q: rue? Marginal cost is equal to marginal revenue. O This is the quantity a firm would choose to…

A: AVC=TVC/Q MC= change in TC/ change in Q

Q: A firm has a cost function of C = 1000 + 20Q + 1/10Q2a) Estimate the firm’s demand function. You may…

A: The objective of the question is to estimate the firm's demand function, find the firm's revenue…

Q: what is the amount of the total fix cost

A: Total cost (TC) = total fixed cost (TFC) + total variable cost (TVC)  Average total cost (ATC) = TC…

Q: 1. A company believes that the demand curve for its products is given by: P = 20 - 0.1Q, for Q≤ 50…

A: A  demand curve shows the relationship between the price of a good and the services and the demand…