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Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 13, Problem 19QE
(a)
To determine
The quantity of output that is produced at $70.
(b)
To determine
Profit of the firm.
(c)
To determine
Expectation of the firm.
(d)
To determine
In a perfectly competitive market structure, the long-run
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Students have asked these similar questions
The graph shows the market for Mickey's Mountain Bikes.
1. What is the profit-maximizing output per week and the price per bike?
2. At this level of output, what is the firm's average total cost, and the economic profit per week?
3. What can we conclude as a result of the economic profit?
In the market for running shoes, all the firms face a similar demand curve and have similar cost curves to those of Smart in question 3.
a. What happens to the number of firms producing running shoes in the long run?
Answer:
b. What happens to the price of running shoes in the long run?
Answer:
c. What happens to the quantity of running shoes produced by Smart in the long run?
Answer:
d. What happens to the quantity of running shoes in the entire market in the long run?
Answer:
e. Does Smart shoes have excess capacity in the long run?
Answer:
f. Why, if Smart firm shoes has excess capacity in the long run, doesn’t the firm decrease
its capacity?
Answer:
g. What is the relationship between Smart Shoes’ price and marginal cost?
Answer:
ion 5 of 20
The accompanying graph depicts the Marginal Cost (MC),
Average Cost (AC), Marginal Revenue (MR), and Demand
(D) curves for a competitive firm.
20
MC
a. Move point E to the profit maximiznig price and quantity
on the graph.
18
AC
16
b. What price should this firm charge to maximize profit?
14
12
D= MR
10
Profit-maximizing price: $
6
4
c. How many units should this firm produce to maximize
2
profit?
2
4
6
8
10
12
14
16
18
20
Quantity
Profit-maximizing output:
units
Price, MR, MC ($)
Chapter 13 Solutions
Microeconomics
Ch. 13.1 - Prob. 1QCh. 13.1 - Prob. 2QCh. 13.1 - Prob. 3QCh. 13.1 - Prob. 4QCh. 13.1 - Prob. 5QCh. 13.1 - Prob. 6QCh. 13.1 - Prob. 7QCh. 13.1 - Prob. 8QCh. 13.1 - Prob. 9QCh. 13.1 - Prob. 10Q
Ch. 13 - Prob. 1QECh. 13 - Prob. 2QECh. 13 - Prob. 3QECh. 13 - Prob. 4QECh. 13 - Prob. 5QECh. 13 - Prob. 6QECh. 13 - Prob. 7QECh. 13 - Prob. 8QECh. 13 - Prob. 9QECh. 13 - Prob. 10QECh. 13 - Prob. 11QECh. 13 - Prob. 12QECh. 13 - Prob. 13QECh. 13 - Prob. 14QECh. 13 - Prob. 15QECh. 13 - Prob. 16QECh. 13 - Prob. 17QECh. 13 - Prob. 18QECh. 13 - Prob. 19QECh. 13 - Prob. 20QECh. 13 - Prob. 1QAPCh. 13 - Prob. 2QAPCh. 13 - Prob. 3QAPCh. 13 - Prob. 4QAPCh. 13 - Prob. 5QAPCh. 13 - Prob. 1IPCh. 13 - Prob. 2IPCh. 13 - Prob. 3IPCh. 13 - Prob. 4IPCh. 13 - Prob. 5IP
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Similar questions
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- Suppose Larry runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Larry's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven (inclusive) that Larry produces. Calculate Larry's marginal revenue and marginal cost for the first seven shirts he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. Larry's profit is maximized when he produces shirts. When he does this, the marginal cost of the last shirt he produces is , which is than the price Larry receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize his profit) is , which is…arrow_forwardThe graph illustrates the demand for Blue Sky surf boards and the firm's marginal revenue. On the graph, draw the marginal cost curve if the firm produces 150 surf boards a week. Label it. Draw a point at the intersection of the MC and MR curves. Draw a point to show the price of a Blue Sky surf board when the firm produces 150 surf boards a week. Draw an arrow to show the firm's markup. Label it. >>> Draw only the objects specified in the question. 750- 675- 600- 525- 450- 375- 300- 225- 150- Ģ 75- 0- 0 Price and cost (dollars per surf board) 50 100 150 Quantity (surf boards per week) Select Point 3-point Curve Double Arrow D MR 200 250arrow_forwardHannah has a small business making clothing alterations. Which of the following products would dramatically affect her profit margins if the price were to decrease for that product? A. dresses B. thread C. sewing machinesarrow_forward
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