Draw the cost curves for a typical firm. For a given price, explain how the firm chooses the level of output that maximizes profit. At that level of output, show on your graph the total revenue of the firm. Show its total costs.
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- Draw the cost
curves for a typical firm. For a given price, explain how the firm chooses the level of output that maximizes profit. At that level of output, show on your graph the total revenue of the firm. Show its total costs.
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- Price Average total cost AVC Demand Marginal cost Marginal revenue Q Quantity Discuss the firm plotted on the figure. What type of firm do you see?is the firm operating at the optimal point of production? is the firm making a proht? s the firm operating in the short or in the long run?Delvin has a hot dog stand in a busy midtown area with similar stands on every block. The graph above shows the cost curves of Delvin’s Hot Dogs. The market price of a hot dog is $3. Answer the questions below and show all calculations where necessary. From the diagram, what is Delvin’s profit-maximizing output per day? Explain your answer. Calculate Delvin’s accounting profit per day. How will Delvin’s price and profit change in the long-run, assuming no change in technology or demand?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.
- Complete the table above. Graph AVC , ATC, and MC on the same graph. Suppose market price is $30. How much will the firm produce in the short run? How much are total revenue? Suppose market price is $50. How much will the firm produce in the short run? What are total profits?Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm's total revenue and total costs.The 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 200 250
- The Economy Tomorrow Using the following graph as a reference, what will be the effect of a successful advertising campaign on the firm's cost, demand, and marginal revenue curves? MC ATC Demand Quantity (units per period) Marginal cost will (Click to select) Average total cost will (Click to select) Demand will (Click to select) Marginal revenue will (Click to select) Price or Cost (dollars per unit)The graph shows the marginal cost and average total cost for Copy Central, a perfectly competitive firm. Recall that in perfect competition, price equals marginal revenue. Fill in the blanks.Find the graphs for a perfectly competitive firm. Graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.
- Google search images and find the graphs for a perfectly competitive firm. Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.Consider the graph. What is the value of profit when this firm is maximizing profit? Enter the number below. P P*=$10 ATC* = $6 B A q*=10 MC ATC MR q = firm quantityWhat is the lowest price where the firm makes positive profit?