A perfectly competitive firm's supply curve is its marginal cost curve. marginal cost curve above its minimum average total cost. marginal cost curve above its minimum average variable cost. marginal cost curve above its minimum average fixed cost.
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marginal cost curve.
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marginal cost curve above its minimum
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marginal cost curve above its minimum average variable cost.
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marginal cost curve above its minimum average fixed cost.
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- Quantity Fixed Cost Variable Cost Total Cost Marginal Cost 10 200 50 250 0 20 200 100 300 5 30 200 300 500 20 40 200 800 1000 X Based on the table above for a perfectly competitive firm: 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?The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than marginal cost. The price of fertilizer must be equal to average variable cost. The price of fertilizer must be less than average total cost. The following graphs show the cost curves faced a typical firm, the demand for fertilizer, and possible price and supply curves. (? (? Firm Market Demand ATC TAVO MC Quantity Quantity Price and Costs P. PriceIf a perfectly competitive firm's average total cost is less than the price, then the firm A) incurs an economic loss. B) makes an economic profit. C) makes zero economic profit. D) makes either zero economic profit or an economic profit depending on whether the marginal revenue is equal to or greater than the price. E) None of these answers is correct because the relationship between the price and average total cost has nothing to do with the firm's profit.
- The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $5, in the short - run a profit - maximizing firm would: Produce and earn a negative economic profit Not produce (as it leads to a negative profit) Produce and earn a normal profit Produce and earn a positive economic profit The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $5, in the short-run a profit-maximizing firm would: Price and cost 16 15 14 13 12 11 10 9 8 6 3 MO O Produce and earn a negative economic profit O Not produce (as it leads to a negative profit) O Produce and earn a normal profit O Produce and earn a positive economic profit ATC AVC 6 bis & QuantityQuantity 10 20 30 40 Fixed Cost 200 200 200 200 Variable Cost 50 100 300 800 Total Cost 250 300 500 1000 Based on the aforementioned chart for a company that is perfectly competitive: A) Calculate the marginal cost using X B) Determine the quantity that will maximize profits if the equilibrium price is $20. C) What kind of profit will the company make? Marginal Cost 0 5 20 XA profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200. What is its profit? What is its marginal cost? What is its average variable cost?
- Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the average total cost of clocks is $95, the average variable cost of clocks is $90, and the price of clocks is $85. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm: A) can increase profit by increasing output.B) is earning a positive economic profit.C) should continue to produce since total revenue exceeds total variable cost.D) should shut down.Assume the industry for flour tortillas in Denver is perfectly competitive. There are 200 firms. Seventy-five of the firms are “high-cost,” with short-run supply curves QHC = 5P. The other 125 are “low-cost,” with short-run supply curves QLC = 8P. Quantities are measured in dozens of tortillas and prices in dollars. Derive the short-run industry supply curve for tortillas QS. Assume the market demand curve for tortillas is given by QD = 10,000 − 625P. Find the market equilibrium price and quantity. At this price, how many dozens of tortillas are produced by the high- and low-cost firms, respectively? Determine total industry producer surplus at the equilibrium. Especially need the producer surplus.The shapes of firms' cost curves are important because they help us determine how the firm will produce. cost curves tell us the profitability of the firm. cost curves give us an idea of what a firm's total revenues will be at different output levels. they help us understand the market that the firm is in.
- Consider a firm in a competitive industry . The firm's average cost curve and marginal cost curve are depicted below . All firms in the market are identical . Suppose the market is in equilibrium , and the firm is currently losing $ 1.200 daily . Use the point tool to indicate the quantity / price point at which this firm must be producing .Which of the following are perfectly competitive markets? Market Tomato Growing Coffee vendor Manufacturing computers Constructing new homes Perfectly Competitive? Yes Yes No Yes Number of Firms Few Many Few Many Type of Product Identical or Differentiated Identical Differentiated Identical Ease of Entry High High Low HighThe market for smoothies is perfectly competitive and the market demand schedule is in the first two columns in the below table. Each of the 100 producers of smoothies has the costs given in columns 3- 6 when it uses its least-cost plant. What is the market price of a smoothie? $5.25 $4.25 $2.91 $2.20 Market demand schedule Quantity demanded (smoothies per hour) 1,000 Price (dollars per smoothie) 1.90 2.00 2.20 2.91 4.25 5.25 5.50 950 800 700 550 400 300 Output (smoothies per hour) 3 4 5 6 7 8 9 Producers of smoothies Costs Marginal cost (dollars per additional smoothie) 2.50 2.20 1.90 2.00 2.91 4.25 8.00 Average variable cost (dollars per smoothie) 4.00 3.53 3.24 3.00 2.91 3.00 Average total cost 3.33 7.33 6.03 5.24 4.67 4.34 4.25 4.44