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d- With help of hypothetical MC,
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- Based on the table below for a perfectly competitive firm: Quantity Fixed Variable Total Cost Cost Cost Marginal Cost ****: |10 20 200 50 200 100 250 300 5 500 20 1000X **** 30 40 200 300 200 800 (a) Find the marginal cost as X. (b) If the equilibrium price is $20, find the profit maximizing quantity. (c) How much profit will the firm earn?(a) Define the characteristic of imperfectly competitive market. (b) Explain the condition when an imperfectly competitive firm earns an abnormal profit with the help of graph.If you're a manager in a highly competitive business such where should you put your most effort to maximize profit? Pricing or cost cutting?
- Use table to find the required values: Price $32 Quantity 400,000 Explicit costs $3,500,000 Implicit costs $4,100,000 (A) Calculate total revenue. (B) Calculate accounting profit. (C) Calculate economic cost. (D) Calculate economic profit.Justin’s Jeans sells in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $33 per unit, and the total fixed cost is $30.(a) Identify the profit-maximizing quantity. Explain using marginal analysis. (b) Calculate the economic profit at the profit-maximizing quantity you identified in part (a). Show your work.(c) Calculate the average fixed cost of producing 6 units. Show your work.(d) Based on your answer to part (b), will the number of firms in the industry increase, decrease, or stay the same in the long run? Explain.(e) Based on your answer to part (b), will the market price increase, decrease, or stay the same in the long run? Explain.(f) The income elasticity of demand for Good M is 1.4, and the cross-price elasticity of demand for jeans with respect to the price of Good M is −0.75. Based on your answer to part (e), what will happen to the demand for jeans? Explain.(g) Now assume that the market in which…You are advised to promote perfectly competitive firms in the industry, what would be your arguments. (In terms of main features, profit maximization, loss minimization, etc.) Use diagram.
- Evaluate the statement. T/F There are no selling cost incurred in a perfectly competitive market.Fill out the rest of the table what would the highest profit be in this perfectly competitive firm and what would the maximizing output be? is there a breakeven price and if so, what is it?If you are a manager in a highly competitive business such where should you put your most effort to maximize profit? Pricing or cost cutting, please explain?
- Many films in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?Use the values for a perfectly competitive firm below to answer the questions: Price Quantity $10 Total Cost Fixed Cost Variable Cost 2000 $24,000 $8000 $16,000 (a) Should this firm shut down in the short run? Explain why or why not in 1-4 sentences. (b) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run? (c) Are your answers to (a) and (b) different? Explain why in 1-4 sentences.Imagine you own a company STR LLC. You produce homogenous and easily available goods. Explain the type of market you are operating in. Elaborate your pricing strategy where you can earn normal profits. You have to show production costs and revenue in a table at what production levels you manage to earn profits or otherwise make losses. References: • Makowski, L., & Ostroy, J. M. (2001). Perfect Competition and the Creativity of the Market. Journal of economic literature, 39(2), 479-535. Kaldor, N. (1935). Market imperfection and excess capacity. Economica, 2(5), 33-50.