You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC = $8  Market price = $13   Quantity MC ($) 1 10 2 8 3 9 4 11 5 14 6 18 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much?

Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. V AVC COSTS (Dollars per ton) 100 882 889 80 20 0 MC 5 25 30 35 QUANTITY (Thousands of tons) 15 20 10 45 40 50 The following diagram shows the market demand for steel.

Problem 2.5    The cost function for Acme Laundry is  TC(q) = 10 + 10q + q^2 so its marginalprod cost function is  MC(q) = 10 + 2q where q is tons of laundry cleaned.  Derive the firm's average cost and average variable cost curves.  What q should the firm choose so as to maximize its profit if the market price is p?  How much does it produce if the competitive market price is p = 50?

Price The graph shows the market demand and supply curves for wheat, and assume it to be a perfectly (or purely) competitive good. Suppose wheat farmers are earning positive economic profits. Assuming all else remains the same, show how the market responds to this discovery in the graph. Demand Supply Quantity

The graph below depicts the cost structure for a firm in a competitive market. Use the graph to answer the following questions. Figure 14-2 Price PPPP Q₁Q₂ MC AVC ATC Quantity Refer to Figure 14-2. When price rises from P ₂ to P 3, the firm finds that All of the above are correct. marginal cost exceeds marginal revenue at a production level of Q₂. it earns normal or zero profit. O if it produces at output level Q3 it will earn a positive profit.

You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC = $7 Market price = $16 Quantity MC ($) 11 9 10 4 12 15 6 19 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much? Output: |(Click to select) v$

In competitive markets economic profit becomes zero in the long-run. However, it is also possible for some firms to earn a greater accounting profit and to enjoy a higher producer surplus than other firms. How is it possible?

COnsider the following firm in a competitive market: total cost= 50+.5Q     Q= Quantity What is its fixed cost? what is its variable cost?

Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal cost of growing peaches for an individual grower are illustrated in the figure to the right. Assume that the market price for peaches is $30.00 per box. What is the profit-maximizing quantity for peach growers to produce? boxes. (Enter your response as an integer.) At this level of output, profit will be $. (Enter your response rounded to the nearest dollar.) Peach growers will earn positive economic profit in the short run at any market price above $ per box. (Enter your response rounded to one decimal place.) Price (dollars per box) 40- 36- 32- 28- 24 20 16- 12- 8 4- 10 MC 20 30 40 50 60 70 80 Output (boxes of peaches per day) ▬▬ ATC 90 100 Q

Assume the price of a product in a perfectly competitive firm is $20 and currently it is making minimum loses. What is the marginal cost (MC) and marginal revenue (MR) at this production level?