Question 16The market is perfectly competitive and there are 1,000 firms that produce paper. A table below sets out the market demandschedule for paper and cost schedule for paper producing firm when it uses its least-cost plant.Price(dollars perbox)5.50lei6.808.109.4010.70Market Quantitydemanded (boxesper week)400,000350,000300,000270,000240,000Each Firm'sOutput(boxes perweek)210230250270290Marginal cost(dollars peradditional box)b) What is the number of firms in the long run?6.007.208.109.4012.40Averagevariable cost(dollars perbox)6.506.406.607.509.00Averagetotal cost(dollars perbox)11.009.208.108.9010.20a) Would firms make economic profit or incur economic loss in the short run? Explain why and calculate the total economicprofit or economic loss.

A perfectly competitive firm in the short-run produces at P=MC, and MC should be rising after that.…

The market is perfectly competitive and there are 1,000 firms that produce paper. A table below sets out the market demand schedule for paper and cost schedule for paper producing firm when it uses its least-cost plant.

The market is perfectly competitive and there are 1,000 firms that produce paper. A table below sets out the market demand schedule for paper and cost schedule for paper producing firm when it uses its least-cost plant.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 10PA

See similar textbooks

Related questions

Q: Under one form of government price regulation, the government sets the price at a level (which is…

Q: 7. Lawrence takes out a loan for $8000 to start a business after high school. The bank charges him…

A: Here, given information is, Lawrence loan amount (P): $8000 Interest rate (r): 8% per year Time…

Q: Suppose that the hourly wages in 1960 and 2002 were respectively 7.21 and 8.65 dollars per hour. If…

A: Hourly wage in 1960 = $7.21 Hourly wage in 2002 = $8.65 CPI 1960 = 100 CPI 2002 = 71

Q: Suppose that the monopolist faces a linear demand curve, P(Q) = A - BQ. Further suppose that the…

Q: In how many years will $1,500 yield an interest of $200 at 2% simple interest?

A: given that, The principal sum is $1500 simple interest is $200 rate of interest is 2%

Q: Let's say you cultivate oranges. Would you anticipate a more elastic or inelastic need for your…

A: Introduction, The term "price elasticity of demand" describes the circumstance in which the quantity…

Q: Consider the following demand and supply functions. D(x) = 83-0.4x, S(x) = 2x + 75.8,0 ≤ x ≤ 90 Step…

A: In the mentioned question we have been given demand and supply function. Demand function refers to…

Q: References Mailings Review View Help In a one-shot game, if you advertise and your rival advertises,…

A: a) From the given information ,we get the payoffs of the game as shown below: Your rival Your…

Q: 3. We will derive the AS-AD curve when there is technological progress. Suppose that the production…

A: As time progresses and technology improves, the curve depicting AS-AD history will move to the…

Q: es in the fictional country of Pyrotar ly, Kenji produced four fire engines, sidering increasing…

A: Variance of market, Competitive market Monopoly market Oligopoly market Perfect competition…

Q: 5. Suppose that the economy's production function is Y = √K√LA where K is capital, L is labor, and A…

A: Solow Growth Model is a concept in economics that focuses and studies long run economic growth rate…

Q: 35. Which of the following is the correct way to compute the future value of $100 put into an…

A: The future value can be given as: F = P (1 + R)t Where: P : Present value F: Future valueR :…

Q: Q1. A and B are the only two sandwich shops serving in a small town. Each shop can choose to set a…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The current price of chicken is $5 per pound and the current price of beef is $10 per pound. Raúl’s…

A: Here, given information is: price of chicken: $5 price of beef: $10 MU of chicken: 10 MU of beef:…

Q: From the following data calculate the value of operating surplus S.No. (i) (ii) (iii) (iv) (vi)…

A: Operating surplus - It is an accounting concept used in corporate and governmental accounts as well…

Q: Show, on a single figure, how an iso-profit curve, a demand curve, and the axiom that marginal…

A: Introduction: The MR-MC criterion states that a monopolist corporation will maximize its profit in…

Q: Which of the following statements is not correct? Select one: O a When MC is below AVC,…

A: The MC cuts the AVC at the minimum point of AVC. The production function shows the relationship…

Q: Law borrowed $2000 from Bence at 8% per annum. After 6 year he cleared the amount by giving $2600…

A: Following is the given information: Borrowed amount = $2000 Interest rate = 8% Time = 6 years

Q: A commercial bank has $80000 in deposits. There are $6,000 in actual resources, of which $2,000 are…

A: The necessary reserve ratio RRR - The amount of reserves that a bank must hold as a percentage of…

Q: Assume the Bobo is the domestic currency. A Big Mac costs $6 in Canada. If the exchange rate is 10…

A: the exchange rate is the cost of a country's cash with regard to another money.

Q: (a) Discuss the basic distinction and similarities between neoclassical Macroeconomist and…

A: Economics is the branch of study that deals with the production and distribution of goods and…

Q: A company that has $70 billion in assets and $20 billion in net worth must include $50 billion in…

A: Anything that has a monetary value to the owner is considered an asset. In other words, assets can…

Q: A man borrowed an amount of S10,000 to a bank. The bank agreed considering that the interest rate is…

A: Information provided is:- Amount borrowed = $10,000 Interest rate = 5% Time period will be 11 months…

Q: 2) Yoni spends his income on consumption between two periods - C1 and C2. Both C1 and C2 are normal…

A: a) Budget Constraint: The limit of the opportunity set—all potential permutations of consumption…

Q: The cost of an item is P200,000. Cost is P20,000 per year. What would be the capitalised cost of a…

A: Capitalized cost is the current value of future cash flows that will never end. Instances of…

Q: Would a sizable nation with growth that was anti-trade biassed experience immiserizing growth?

A: The term "anti-trade bias" typically refers to the claim that import-competing industries are…

Q: explain in detail the difference between the concept of Pareto optimality and Pareto superiority.

A: The Pareto concept or principle states that for many events, about 80% of the effects result from…

Q: Consider the impact of treating each of the 3 types of duopolies as a repeated game with the same…

A: There are three different types of duopolies: Cournot, Bertrand, and Stackelberg. Each type of…

Q: Find the below information for product X and related product Y: Quantity of X traded Price of X…

A: ▪︎The level of Price the government can set taxes in accordance with the elasticity of demand.…

Q: Run (-25,-4) Drive Player 2 Walk Run Fly Walk Swim (10,0) (3,20) (2,10) (1,9) a. Use backward…

A: Here we will find the subgame perfect equilibrium using the backward induction approach:…

Q: Question 1: Suppose that the monopolist faces a linear demand curve, P(Q) = A - BQ. Further suppose…

A: Monopoly refers to the type of market or industry where it is entirely occupied by a single firm or…

Q: A. What is meant by asymmetric information?

A: Since you have asked multiple question, we will answer first question for you. If you want any…

Q: An economic of a developing country that is expanding and becoming increasingly integrated with…

A: Gross domestic product (GDP) growth is referred to as economic growth. It is a more limited phrase…

Q: Three production processes - A, B, and C - have the following cost structure: the selling price is…

A: For process A: - Fixed cost = 1,19,164 - Variable cost = $ 2.54 per unit The firm is producing…

Q: World Economy and Foreign Trade Terms Provide each of the following terms a definition and explain…

A: International trade is the study of why trade happened between nations, how it is beneficial and it…

Q: If a 12% rise in the price of grape juice increases the quantity of orange juice demanded by 8%,…

A: The elasticity of demand measures the quantitative relationship between the price and quantity…

Q: 39 1A country is said to have a comparative advantage in the production of a good when it: has the…

A: Comparative advantage is responsible for the international trade. The international trade is not…

Q: The investment function is I = 3-10i. What is investment when the interest rate i is equal to 0.10 =…

A: Given: Investment Function : I=3-10i Interest Rate = 10% Government Spending : G

Q: agreed interest rate is 5% annually. Determine the amount that the man paid the ba borrowed last…

A: From and including: 1 January 1990 To, but not incorporating 30 December 1990 Result: 363 days…

Q: Identify the various types of tariffs and their purpose

A: A tariff is a charge or tax that a nation's government imposes on a traded good as it enters its…

Q: The Great Resignation: What does it mean for the economy?

A: The phenomenon known as "The Great Resignation" refers to the unprecedented amount of workers…

Q: Suppose you are one of two producers of aluminium. You (firm 1) and your competitor (firm 2)…

A: When the two firms simultaneously optimize their outputs , each firm maximizes its profits taking…

Q: Explain the type of policies a central bank can implement to raise the interest rate

A: The goal of the monetary policy of the central bank is to control the amount of money in the…

Q: With an initial wealth of $160,000, a consumer who abides by the von Neumann-Morgenstern axioms…

A: A utility function or activity is a representation that defines individual preferences for goods or…

Q: 1. Suppose the current federal funds rate is 4 percent and the Fed wants to lower it to be within…

A: A Non bank Financial institution is an organization that gives banking administrations to…

Q: 1. V p her de so and the US dollar les d Al pr i Be der eine reine d Chappreciated recited Di de ani…

A: An exchange rate is a rate at which one currency will be exchanged for another currency.

Q: QUESTION 27 If nominal GDP in 2014 is $20.000 billion while real GDP is $16,500 billion, then the…

A: GDP Deflator = Nominal GDPReal GDP×100Unemployment rate = Number of Unemployed personLabor…

Q: 2. Assume that money demand takes the following form: M Y[l - (r + nº)} P where Y= 1,000 and r =…

A: Given: The money demand function is: MP = Y 1 - r + πe Y = 1,000 r = 0.1 πe = 25% To Find: Change in…

Q: Describe the European Union. How many countries are in the European Union? (You may find information…

A: European union is a group of nations which form a single market.

Q: Let Pm be the monopoly price and p" be the competitive price. Initially, there are many souvenir…

A: The above question provides a market scenario in which there are many seller but still the prices…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The market for apple pies in the city of Ectenia is competitive and has the followingdemand schedule:Price Quantity Demanded$ 1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0 ch producer in the market has fixed costs of $9 and the following marginal cost:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost and average total cost for 1 to 6 pies.b. The price of a pie is now $11. How many pies are sold? How many pies does eachproducer make? How many producers are there? How much profit does eachproducer earn?c. Is the situation described in part (b) a long-run equilibrium? Why or why not?d. Suppose that in the long run there is free entry and exit. How much profit does eachproducer earn in the long-run equilibrium? What is the market price? How many piesdoes each producer make? How many pies are sold in the market? How many pieproducers are operating?
Price and cost (dollars per student) $150 120 88 76 72 ATC 40 - MC MR 24,000 30,000 36,000 Quantity of students enroiled 15,000 Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor? O A. $0 В. $40 C. $88 D. $150
4. Elasticity and total revenue The following graph shows the daily demand curve for bippitybops in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 120 110 100 Total Revenue 90 B0 70 50 40 30 20 10 Demand 10 20 30 40 50 70 90 100 110 120 QUANTITY (Bippitybops) PRICE (Dollars per bippitybop)
Pls don't use AI solution Consider a firm operating in a competitive market. The firm is producing 50 units of output, has an average total cost of production equal to 7 dirhams, and is earning 350 dirhams economic profit in the short run. What is the current market price?.
The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. Price (dollars) 24 10 V ATC The firm will receive $ MR Quantity/time The firm will maximize its profit at a quantity of▼ units. D Options: 6, 8, 9, or 10 After choosing the profit maximizing quantity, the firm will charge a price of in revenue at the profit-maximizing quantity. The total cost of production for this profit-maximizing quantity is $ The maximum profit the firm can earn in this situation is How will the situation change over time? Options: 6,8 10, or 24 per unit for this output. O Profits will attract rival firms into the market until the profit-maximizing price falls to the level of per-unit cost. O The market will adjust until the price charged by this firm no longer exceeds marginal cost at the profit-maximizing quantity. O This market is already in long-run equilibrium, and will not change throughout time. O Losses will induce firms to leave…
Efficiency is when ved of The benefits of the resources are distributed fairly among economic agents O b. Society gets the most from its scarce resources. OC Prosperity is distributed uniformly among society's members o d The wealth of the economy is redistributed Clear my choice VO
The market for apple pies in the city of Ectenia iscompetitive and has the following demand schedule:Price Quantity Demanded$1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0Each producer in the market has fixed costs of $9 andthe following marginal cost schedule:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost andaverage total cost for each quantity from 1 to6 pies.b. The price of a pie is now $11. How many pies aresold? How many pies does each producer make?How many producers are there? How much profitdoes each producer earn?c. Is the situation described in part (b) a long-runequilibrium? Why or why not?d. Suppose that in the long run there is free entryand exit. How much profit does each producerearn in the long-run equilibrium? What isthe market price? How many pies does eachproducer make? How many pies are sold inthe market? How many pie producers areoperating?
ework 71 B Saved Help Save & Exit Subm Assume the price of basic white t-shirts in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Quantity (t-shirts per day) Total Cost 0 $10 1 17 2 26 Print 3 37 4 50 5 65 6 82 7 101 8 122 9 145 10 170 aw Search ^ C
The graph shows the short-run cost curves of a toy producer. The market has 1,000 identical toy producers. The market price of a toy is $21. In the short run, the firm produces toys a week. 24- 21- 18- 15- 12- 9- 0 500 1000 1500 2000 MC ATC AVC 2500
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?
TOTAL COST AND REVENUE (Dollars) 100 Total Cost ם Total Revenue 75 50 -25 A 50 0 1 2 5 QUANTITY (Shirts) A A Profit Calculate Neha's marginal revenue and marginal cost for the first seven shirts she produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. (?) COSTS AND REVENUE (Dollars per shirt) 30 25 225 20 15 10 о OO 2 3 A 5 6 QUANTITY (Shirts) Marginal Revenue + Marginal Cost Neha's profit is maximized when she produces 10 shirts. When she does this, the marginal cost of the previous shirt she produces is $ which is than the price Neha receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is S than the price Neha receives for each shirt she sells. Therefore, Neha's profit- maximizing quantity corresponds to the intersection of the which is curves. Because Neha is a price taker, this…
QUESTION 20 Study the table below which represents the cost and price schedules facing a perfectly competitive firm that manufactures bulbs. Use this information to answer the question. Quantity of the product 0 1 2 3 4 Price per unit (R) 10 10 10 10 10 10 c) d) 38022222 Total revenue Total profit (R) -10 -9 -5 -6 Marginal cost (R) . 9 6 8 10 13 Average variable cost (R) 9,00 7,50 7,67 8,25 9,20 This perfectly competitive firm will produce a) 3 bulbs, since losses are minimised. b) 4 bulbs, but it will consider shutting down in the short run. 4 bulbs, since at this production level it earns normal profit. 4 bulbs and will stay in operation.