310 185 170 95 80 65 $ A profit-maximizing firm will break even when market price is $ SMC If market price is $80, a profit-maximizing firm will produce ATC 0 1100 1600 1900 The figure above shows cost curves for a perfectly competitive firm. Suppose that market price is $310. A firm producing 1 700 units of output should produce AVC 9 units of output instead, to earn profits of $ units of output and earn profits of $
Q: 200 400 600 900 1000 1200 1400 Quantity per perd Va Refer to the above graph to answer this question…
A: The externalities are side effects of economic activities that are faced by the third parties. The…
Q: Given that f(x) = b^x for b > 0, determine the values of b that will make the function f an…
A: This can be described as a concept that shows when an individual, firm, or any entity uses an…
Q: 5.30 250 1.50 1.00 $ 9.10 56 25 $3 2.50 NOTE: the MC of 6 5 units is equal to $2, the MC of 7.5 is…
A: Average total cost (ATC): is the average of the total costs, and is given by:Marginal cost(MC): is…
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…
Q: The points located at the intersection of the budget line with the y axis means: a) these are…
A: This can be defined as a concept that shows from the available fixed resources to the consumer how…
Q: PRICE LEVEL 140 135 130 125 115 110 105 100 100 105 LRAS AS 110 115 120 OUTPUT (Bons of dollars) AD…
A: The aggregate demand curve is the graphical presentation of the macroeconomic concept of demand that…
Q: f this were an OECD economy, which had been conducting unconventional monetary policy (UMP), briefly…
A: It is mentioned in the provided question to answer only the 'D' subpart. Hence, only the specified…
Q: fer to the diagram to the right which shows the cost and demand curves for a profit−maximizing firm…
A: The perfectly competitive market refers to a market where homogenous products are produced by all…
Q: You are a member your company"s strategic planning group. Your company is in the business equipment…
A: The study of how firms make decisions and allocate resources in the face of restrictions is known as…
Q: (Cost of debt) Sincere Stationery Corporation needs to raise $531,000 to improve its manufacturing…
A: Markеt valuе, also known as markеt capitalization in thе contеxt of stocks, is thе total valuе of a…
Q: 16. The demand for euros in the foreign exchange market equals 8000 - 2000e and the supply of euros…
A: Exchange refers to the value of one currency in terms of the currency of another country. There are…
Q: when a firm is operating at the minimum of its............. cost curve it is at its shutdown point…
A: The objective of the question is to identify which cost curve a firm is operating at when it is at…
Q: Provide a table with the nominal GDP for Trinidad and Tobago for 2020 and 2021. Using only the…
A: Macroeconomic analysis provides a thorough picture of an economy's financial situation. It detects…
Q: You have $10,000 to invest for 90 days. Current spot rate: $1.32/£. The 90-day forward rate is…
A: Home Currency Return (HCR): This shows the return on an investment when measured in the investor's…
Q: Charlie You chose low price, and Ms. Rimby also chose low price. What is Top Notch's payoff? $2…
A: The pay-off matrix for Top Notch and Blue Skies is provided below. Blue SkiesLow PriceHigh PriceTop…
Q: Suppose a binding price floor is imposed on a market. Can you show a correct craft that shows the…
A: A legally binding price floor is a minimum price imposed by the government with the intention of…
Q: Consider an economy described by the following: Ć = $3.5 trillion ī = $1.3 trillion G The expression…
A: The Marginal Product curve is referred to as the MP curve in economics. It displays the increased…
Q: June 2018, the price of jet fuel jumped 33%. rom June a. Based on a general Cournot model, use…
A: Cournot Model is the economic model in which firms compete in quantities rather than prices. The…
Q: An asset with a first cost of $13,000 is depreciated using the Modified Accelerated Cost recovery…
A: The modified accelerated cost recovery system is the modified version of ACRS. It is a tax…
Q: If the expected path of one-year interest rates over the next four years is 3 percent, 2 percent, 2…
A: Expectation theory in economics explains the yield on bonds based on an investor's expectation of…
Q: A French corporation imports goods from the United State and expects to pay in U.S. dollars in six…
A: PFuture contract is the financial agreement between parties to hedge the risk associated with…
Q: GDP is $12 trillion in a closed economy. Consumption is $8 trillion, and government spending is $2…
A: Private savings is the amount of money that households and businesses set aside after paying taxes…
Q: Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unemployment Rate Inflation rate % % 8.24…
A: Unemployment is the economic state in which individuals who are actively seeking employment are…
Q: Stone Inc. owns a clothing factory and hires workers in a competitive labor market to stitch cut…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: a. What is the profit-maximizing quantity when price is $20? b. What is the profit-maximizing…
A: This can be described as a form of market in which no single producer or consumer has the power to…
Q: gure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At…
A: The total cost is the sum of the total of fixed cost and variable cost.TC = TFC+TVCFixed costs do…
Q: The following graph plots the aggregate demand curve for this economy. Show the impact of the…
A: The money demand curve is downward sloping. It represents the inverse relationship between interest…
Q: The recent report on SMEs across the country asserted that the contribution of SMEs to GDP and…
A: The Impact of Strategic Orientation on the Performance of Small and Medium-Sized Enterprises (SMEs)…
Q: The graph gives an economy's AE curve when the economy is in long-run equilibrium. Equilibrium…
A: Aggregate expenditure describes the total amount of spending in the economy through consumption,…
Q: What is this household's marginal propensity to consume at c1 (in percent)?
A: Marginal propensity to consume means the portion of consumption which is bought from the consumer's…
Q: Assume that the gross domestic product is $6,000, personal disposal income is $5, 100, the…
A: National saving is the total saved money from people, businesses, and the government in a country.…
Q: Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily…
A: In the realm of economics and production, three key concepts play a crucial role in understanding…
Q: Assume a firms production function depends on labour hours (L) only and is give F(L) = 5L0.8 .…
A: The production function shows the relationship between output and input. Here, only one input is…
Q: Lauren grows grapes. Her average variable cost (AVC), average total cost (ATC), and marginal cost…
A: The marginal cost refers to the additional cost of production incurred due to additional production.…
Q: The data in the table below are for the economy of Merton, which has a natural rate of unemployment…
A: The GDP implies the value of all the commodities and services provided in the economy by the…
Q: New Normal University has found it necessary to institute a crime-control program on its campus to…
A: Cost-benefit analysis is a decision making tool that helps us to choose the best plan of action from…
Q: Partnership Game Lee (Player 1), and Julie (Player 2), are business partners. Each of them has to…
A: The level of effort is given as The cost of putting the effort is given as The profit for both the…
Q: If the production function is F(K,L)=A∗K0.4L0.6 then what is the marginal rate of technical…
A: The production function refers to the mathematical relationship between the output of a firm or a…
Q: Financial markets have the basic function of assuring that domestic firms can attract more…
A: A financial market is a market where financial assets like stocks, bonds, etc. are exchanged between…
Q: National income account Personal consumption expenditures Personal taxes Government consumption and…
A: GDP is the sum total of the market value of final goods and services produced in a country during a…
Q: Discuss what can be the expected result of the firms in the Cournot oligopoly, that is, that can be…
A: The Cournot duopoly model is a theoretical framework in economics that examines the strategic…
Q: 2. Consider two players playing a simultaneous moves game. These players can be one of the two…
A: Game Theory refers to the study of mathematics where two players and two or more strategies are…
Q: Villagers each have $1,200 to invest in either cattle or a government bond. They will sell either at…
A: Marginal income is the change in total income. Marginal income =
Q: Refer to Figure 13-2. Ceteris paribus, an increase in the price level would be represented by a…
A: A model used in macroeconomics is the (AD/AS) model. It clarifies how an economy's price level and…
Q: park Studio produces commercials for other companis. A 2-minute commercial, for example, needs…
A: Isoquant is the graphical representation of all the combinations of inputs on a curve that produces…
Q: A) Describe the assumptions of personnel economics. How are these assumptions unique compared to…
A: A specialist area of research called personnel economics uses economic theories to analyze labor…
Q: Price P₁ P2 9.00 8.00 Quantity Q₁ Q2 Normal; 0.57 Normal; -0.57 inferior; 0.57 inferior; -0.57 1.000…
A: Income Elasticity of Demand measures the percentage change in the quantity demanded of a good or…
Q: Economic profit = accounting profit - the opportunity costs of resources already owned by the…
A: Economic Profit:Economic profit, also known as economic value added (EVA), is a measure of a firm's…
Q: c. If this is a monopoly firm, a part of the demand schedule and the marginal revenue is given by…
A: In economics, a monopoly is a market structure in which a single seller controls the entire supply…
Q: The Registered Insurance Brokers Act of Ontario states, "An insurance broker means any person who…
A: Insurance is a contract, represented by a policy, in which an insurer indemnifies another against…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 8 images
- A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new process lowers the firm’saverage cost, meaning that this firm alone (although still aprice taker) can earn real economic profits in the long run. a. If the market price is $20 per widget and the firm’s marginalcost is given by MC=0.4q , where q is the dailywidget production for the firm, how many widgets willthe firm produce? b. Suppose a government study has found that the firm’snew process is polluting the air and estimates the socialmarginal cost of widget production by this firm to be. If the market price is still $20, what is thesocially optimal level of production for the firm? Whatshould be the rate of a government-imposed excise tax tobring about this optimal level of production? c. Graph your results.Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?
- essay (on this firm) argues that, the firm would be better off by closing down. Do you a unit of output of this company is Birr L3. A student working on his senior A company in a perfectly competitive market has a total cost function given as: 6. TC 50+40+ The price agree? Explain By using the knowledge of relationshins among the various cost concepts, fill the bia cells of the following table. Quantity TFC TVC TC MC AFC AVC ATC 50 50 64 98 162 26 20 finms (Fi and Fa) producing identical product competing for like to dominate the other, if possible. They each defendsAssume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $60.00 $45.00 $105.00 $45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $56.00 (i) Will this firm produce in the short run? (Click to select) No Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? (Click to select) Not applicable Loss-minimizing…Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $ 60.00 $ 45.00 $ 105.00 $ 45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 a. At a product price of $56.00 (i) Will this firm produce in the short run? yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? profit- maximizing output = 9 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 16 b. At a product price of $41.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the…
- Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market. Output Fixed AFC Variable AVC Total ATC MC Cost Cost cost 1 $50 50/1=50 $30 30/1=30 30+50=80 80/1=80 NA 2 $50 50/2=25 $50 50/2=25 50+50=100 100/2=50 (100-80)/(2-1)=20 3 $50 50/3=16.67 $80 80/3=26.67 50+80=130 130/3=43.33 (130-100)/(3-2)=30 4 $50 50/4=12.50 $120 120/4=30 50+120=170 170/4=42.50 (170-130)/(4-3)=40 5 $50 50/5=10 $170 170/5=34 50+170=220 220/5=44 (220-170)/(5-4) =50 What can you expect from an industry in perfect competition in the long run? That is, what will the price be? What quantity will be produced? What will be the relation between marginal cost, average cost, and price?ps ndar 2 You're running a small firm, and you have an estimate of both your cost function and your demand curve. Your cost function is TC-791-11q+5g 2. while your inverse demand curve is P-870-0.4q, where P is the price of one unit of your output and q is the quantity of units produced and sold If you wanted to maximize profit. what quantity would you produce? Please round your answer to the nearest whole number (ie, no decimal places) Type your answer...Sketch a marginal cost curve for a firm that has constant marginal costs of production up to its capacity of 500 units but which cannot increase its output beyond that capacity PLEASEE SHOW THE CURVE
- Use the following table and use your previous calculations: find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm. Total Output Total Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 $280 a. MC = ATC between 30 and 40 Quantity ATC at minimum between 20 and 40 Quantity b. MC = ATC at 30 Quantity ATC at minimum between 20 and 40 Quantity c. MC = ATC at 40 Quantity ATC at minimum between 20 and 40 Quantity d. MC = ATC between 30 and 40 Quantity ATC at minimum between30 and 40 Quantity e. MC = ATC between 20 and 40 Quantity ATC at minimum between 20 and 40 QuantityExplain why earning zero economic profit is not as bad as itsounds.Output AFC AVC ATC MC 1 $ 300 $ 100 $ 400 $ 100 2 150 75 225 50 3 100 70 170 60 4 75 73 148 80 5 60 80 140 110 6 50 90 140 140 7 43 103 146 180 8 38 119 156 230 9 33 138 171 10 30 160 190 290 360 The accompanying table shows cost data for a firm that is selling in a purely competitive market. If the market price for the firm's product is $180, the firm will produce Multiple Choice 6 units and earn economic profits of $800. 8 units and earn economic profits of $278. 5 units and earn economic profits of $900. 7 units and earn economic profits of $238.