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he market for calculators in the city of Lefke is competitive and has the following demand chedule: $3 Quantity demanded Price 4. 5.7 10 11 250 7. 1050 950 650 550 852 Each producer in the maitet has fixed costs of $16 and average variable costs as follows: VÇ 750 450 350 AVC TC MC ATC $1 2. 4 3 4. 10 5. 12 6. a. Compute each producer's variable cost, total cost, marginal cost and average total cost b. On the same diagram draw the average variable cost, the marginal cost and the average variable cost curves (label them AVC, MC and ATC respectively) c. Show the supply curve of the firm on the above graph.

he market for calculators in the city of Lefke is competitive and has the following demand chedule: $3 Quantity demanded Price 4. 5.7 10 11 250 7. 1050 950 650 550 852 Each producer in the maitet has fixed costs of $16 and average variable costs as follows: VÇ 750 450 350 AVC TC MC ATC $1 2. 4 3 4. 10 5. 12 6. a. Compute each producer's variable cost, total cost, marginal cost and average total cost b. On the same diagram draw the average variable cost, the marginal cost and the average variable cost curves (label them AVC, MC and ATC respectively) c. Show the supply curve of the firm on the above graph.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
ChapterA: The Use Of Mathematics In Principles Of Economics
Section: Chapter Questions
Problem 3RQ: Exercise A3 What dome slices of a pie chart represent?
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Extra exercises (5) [Compatibility Mode] - Word (Product Activation Failed) Mailings Review View O Tell me what you want to do.. 21 T AaBbCcDc AaBbCcI AaBbCcDc AaBbC AaBbCcl AaB AABBCCC Aa - A- I Normal Body Text 1 No Spac.. Heading 1 Heading 2 Title Subtitle Sub Paragraph Styles Question 3. "he market for calculators in the city of Lefke is competitive and has the following demand chedule: Price Quantity demanded 5.7 $3 4 1050 11 250 Bach producer in the matet has fixed costs of $16 and average variable costs as follows: 6 10 950 852 750 650 550 450 350 Q AVC VC TC MC ATC 2 $1 4 2. 10 12 6 a. Compute each producer's variable cost, total cost, marginal cost and average total cost b. On the same diagram draw the average variable cost, the marginal cost and the average variable cost curves (label them AVC, MC and ATC respectively) c. Show the supply curve of the firm on the above graph. d. What is the shut-down price? How much is the amount of loss at that price? e. The price for calculator is now $9. How many calculators are sold in the market? How many calculators does each firm produce? How many producers are there? How much profit does each firm earn? f. Is the situation described in part a long-run equilibrium? Why or why not? g. Suppose that in the long run there is free entry and exit. How much profit does each firm eam in the long-run equilibrium? What are the market price and the number of calculators each firm produce? How many calculators are sold in the market? How many producers are there? w ASUS
Transcribed Image Text:Extra exercises (5) [Compatibility Mode] - Word (Product Activation Failed) Mailings Review View O Tell me what you want to do.. 21 T AaBbCcDc AaBbCcI AaBbCcDc AaBbC AaBbCcl AaB AABBCCC Aa - A- I Normal Body Text 1 No Spac.. Heading 1 Heading 2 Title Subtitle Sub Paragraph Styles Question 3. "he market for calculators in the city of Lefke is competitive and has the following demand chedule: Price Quantity demanded 5.7 $3 4 1050 11 250 Bach producer in the matet has fixed costs of $16 and average variable costs as follows: 6 10 950 852 750 650 550 450 350 Q AVC VC TC MC ATC 2 $1 4 2. 10 12 6 a. Compute each producer's variable cost, total cost, marginal cost and average total cost b. On the same diagram draw the average variable cost, the marginal cost and the average variable cost curves (label them AVC, MC and ATC respectively) c. Show the supply curve of the firm on the above graph. d. What is the shut-down price? How much is the amount of loss at that price? e. The price for calculator is now $9. How many calculators are sold in the market? How many calculators does each firm produce? How many producers are there? How much profit does each firm earn? f. Is the situation described in part a long-run equilibrium? Why or why not? g. Suppose that in the long run there is free entry and exit. How much profit does each firm eam in the long-run equilibrium? What are the market price and the number of calculators each firm produce? How many calculators are sold in the market? How many producers are there? w ASUS
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