2. The demand curve facing a competitive firm Falero is one of more than a hundred competitive firms in San Diego that produce small cardboard boxes for moving. The following graph shows the daily market demand and supply curves. 10 Demand Supply 2 0 1 2 3 4 5 6 8 9 10 QUANTITY (Millions of small boxes) On the following graph, use the green line (triangle symbol) to plot the demand curve for Falero's small cardboard boxes. PRICE (Dollars per small box)
Q: Output TC $10 14 17 ATC AFC AVC MC MR 19 22 26 31 37 44 52 N345O789
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- O See Hint The graph below shows the marginal cost curve for two firms, A and B. Assuming these two firms together completely dominate their market, draw the market supply curve. Use the straight-line tool, and set the endpoints of the line based on the endpoints of the two given lines. To refer to the graphing tutorial for this question type, please click here. Price and marginal cost 160 150 140 130 120 110 100 80 70 60 50 40 30 20 10 160 る ろ 8さ88るるる Quantity supplied (thousands)do 1 2 1 4 5 6 7 A 9 TC MC TVC AVC ATC PRICE 12 14 5 7 10 14 19 t 32 Complete the above table and indicate the profit maximizing quantity of good to produce for the perfectly competitive firm HASRAHAST Below, graph the Demand, MR, ATC, AVC, and MC curves form the data given above. Be sure to indicate the profit maximizing quantity. Is the quantity the same as indicated above? 36 32 28 Perfect Competition Homework Problem 21 /2 8 TR Quity MR PROFIT GETTING STARTED 10 Getting to Know the Professor Q Search2. The demand curve facing a competitive firm The following graph shows the daily market for extra-large cardboard boxes in San Francisco. Suppose that Vesoro is one of more than a hundred competitive firms in San Francisco that produce such cardboard boxes. Based on the preceding graph showing the daily market demand and supply curves, the price Vesoro must take as given is . Fill in the price and the total, marginal, and average revenue Vesoro earns when it produces 0, 1, 2, or 3 boxes each day. Quantity Price Total Revenue Marginal Revenue Average Revenue (Boxes) (Dollars per box) (Dollars) (Dollars) (Dollars per box) 0 0 – 1 2 3 The demand curve that Vesoro faces is identical to which of its other curves? Check all that apply. Average revenue curve Marginal revenue curve Supply curve Marginal cost curve
- The following graph illustrates the market for small moving trucks in Eugene, OR, during Oregon's fall move-in week. PRICE (Dollars per small truck) 100 90 80 70 30 20 2 10 D D Demand 1 0 1 2 3 2 3 4 5 QUANTITY (Hundreds of small trucks) 7 Suppose that Zoomba is one of over a dozen competitive firms in the Eugene area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price Zoomba must take as given is S Supply Fill in the price and the total, marginal, and average revenue Zoomba ears when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue Average Revenue (Trucks) (Dollars per truck) (Dollars) (Dollars) (Dollars per truck) Average revenue curve O Marginal revenue curve Marginal cost curve O Supply curve 10 0 The demand curve faced by Zoomba is identical to which of its other curves? Check all that apply.Chapter 16 Homework PRICE (Thousands of dollars per fire engine) 220 Femi 200 180 160 140 120 100 80 60 40 20 0 0 True 1 False 2 4 56 7 QUANTITY (Fire engines) 3 8 Demand 9 10 increase production from 8 to 9 fire engines because the True or False: If alternatively Femi's HookNLadder were a competitive firm and $80,000 were the market price for an engine, decreasing its price from $80,000 to $40,000 would result in the same change in the production quantity and, thus, total revenue. Revenue Lost Revenue Gained dominates in this scenario.2. The gains and loss from selling one more unit Sean's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Sean produced seven fire engines, but he has decided to increase production to eight fire engines. The following graph shows the demand curve Sean faces. As you can see, to sell the additional engine, Sean must lower his price from $100,000 to $50,000 per fire engine. Note that although Sean gains revenue from the additional engine he sells, he also loses revenue from the initial seven engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial seven engines by selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000.
- The market for peanut butter in Nutville ismonopolistically competitive and in long-runequilibrium. One day, consumer advocate Jif Skippydiscovers that all brands of peanut butter in Nutvilleare identical. Thereafter, the market becomes perfectlycompetitive and again reaches its long-run equilibrium.Using an appropriate diagram, explain whether eachof the following variables increases, decreases, or staysthe same for a typical firm in the market.a. priceb. quantityc. average total costd. marginal coste. profit2. The demand curve facing a competitive firm The following graph shows the daily market for large cardboard boxes in San Francisco. 0123456789104036322824201612840PRICE (Dollars per large box)QUANTITY (Millions of large boxes)DemandSupply Suppose that Talero is one of more than a hundred competitive firms in San Francisco that produce such cardboard boxes. Based on the preceding graph showing the daily market demand and supply curves, the price Talero must take as given is . Fill in the price and the total, marginal, and average revenue Talero earns when it produces 0, 1, 2, or 3 boxes each day. Quantity Price Total Revenue Marginal Revenue Average Revenue (Boxes) (Dollars per box) (Dollars) (Dollars) (Dollars per box) 0 0 – 1 2 3 The demand curve that Talero faces is identical to which of its other curves? Check all that apply. Marginal revenue…2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Oviedo, FL, during UCF's fall move-in week. 100 90 80 PRICE (Dollars per small truck); 5 8 8 70 50 40 30 20 10 0 Demand 0 1 5,50 8 2 3 4 5 6 QUANTITY (Hundreds of small trucks) Supply 9 10 ? Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving truck rentals.
- Figure A Price (dollars per unit) Figure B Figure C Price (dollars per unit) Price (dollars per unit) 154 144 13 15 15- MC MC 14 13 14 13 MC ATC 12 ATC 12 ATC 12 10 MR 10 10 MR MR 9. 8 8 8 7 7 6 6 06 100 Quantity (units) T10 90 00 T10 T 10 Quantity (units) 90 100 Quantity (units) Use the figure above to answer this question. Consider a perfectly competitive firm in a short run equilibrium. Figure shows a firm in bad times because the firm makes a(n) O A; economic loss of $4 per unit if the firm decides to operate O A; economic loss of $4 so it must close O B; economic loss of $3 per unit O B; economic profit because the price exceeds average variable cost O C; normal profit and can stay open in the long run1) Briefly explain how the total revenue for a profit-seeking film is determined 2)Briefly explain what is meant by the term "fixed costs" and provide three examples of same. What determines a firm's level of fixed costs? 3)Contrast the rold of fixed costs and variable costs in economic decisions about future prodiction 4)Briefly compare and contrast the perceived demand curve for a monopolitically competitive firm and a perfectly competitive firm. 5)Briefly explain what quantity a profit maximizing monopolistic competitor will seek. Why not this type of competitive frim is productively efficient?3. The components of marginal revenue Sean's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Sean produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Sean faces. As you can see, to sell the additional engine, Sean must lower his price from $80,000 to $60,000 per fire engine. Note that while Sean gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $60,000. PRICE (Thousands of dollars per fire engine) Sean 100 90 80 70 40 10 ++ 0 0 1 True + 2 False 3 4 5 QUANTITY…