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- Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?4. A competitive firm’s short-run supply curve is its________ cost curve above its ________ cost curve.a. average total, marginalb. average variable, marginalc. marginal, average totald. marginal, average variableRevenue and cost (dollars per unit) MC AVC 50 40 30 20 10 10 20 30 40 50 Output (units per day) The above figure illustrates a perfectly competitive firm. If the market price is $40 a unit, to maximize its profit (or minimize its loss) the firm should Select one: a. produce 30 units. b. produce more than 30 units and less than 40 units. c. produce 40 units. d. shut down. e. produce more than 10 and less than 30 units.
- 1. A firm in a perfectly competitive industry has fixed costs of FC = 15, marginal costsof MC = 5 + 14q, and average variable costs of AVC = 5 + 7q.(a) What are the firm's variable costs (VC)?(b) What is the firm's total cost function? (0) If the price is $75, how much does the firm supply? (d) Does the firm continue to supply this quantity in the short-run? (e) Suppose there exists a standard market demand function from consumers(downward slopping). Please provide a logical discussion about how the marketachieves short-run equilibrium.If marginal revenue exceeds marginal cost, a competitive firm can increase profit by: a. Increasing output. b. Decreasing output. c. Making no change in output. d. Raising its price PreviousNext1. The following table has information on the revenues and costs for Tom's tennis ball manufacturing which operates in a perfecetly competitive market. a) Complete the table that corresponds to Tom's production when price is $3. What is MR? b) What is Tom's profit maximization output? What is the shutdown price, entry and exit price? c) What is the economic profit or loss? No of baseballs Total Variable Costs Total Fixed Total Cost $ Cost $ 1.00 2.00 4,00 2. 7.00 4. 11.00 16.00
- Figure 14-2 Suppose a firm operating in a competitive market has the following cost curves: 20 MC 18 16 14 12 ATC 10 8 7 4 1 3 4 5 6 7 8 9 10 QUANTITY Refer to Figure 14-2. If the market price is $10, what is the firm's total revenue? a. $35 b. $30 C. $15 d. $50 PRICEA firm in competitive market has demand and total cost functions as follows: P-2600-100 TC-2.5Q+1000 + 5000 a. What are fixed cost (FC), variable cost (VC), average total cost (ATC) and marginal cost (MC) b. In order to maximize profits, what are price and quantity? Calculate the maximum profita. Find total revenues and marginal revenues for each of the quantities. b. What quantity of CDs would maximize profit? What would the price be? 2.) Charlies's lawn-mowing service is a profit-maximizing.competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say about Charlies's short-run decision regarding shutdown and his long-run decision regarding exit?
- 1. Suppose a perfectly competitive soybean farmer is producing soybeans at a loss. a) Explain the relationship between the Price, AVC, and ATC for this farmer. b) Explain why the farmer would choose to produce at this loss rather than shutdown.a. Calculate profit for each quantity. How much should the firm produce to maximize profut ? b. Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at ) At what quantity do these curves cross? How does this relate to your answer to part (a)? c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium?3.The graph below shows the costs and revenue curves for Dollar-Daze, a typical profit-maximizing firm in a perfectly competitive market producing Good X. Answer the following questions based on the graph attached a. Calculate the firm’s fixed cost. Show your calculations.b. Identify the price and profit maximizing quantity of Good X for Dollar-Daze.c. Calculate the economic profit at the quantity identified in part (b).