Which of the following is true in the long run equilibrium of a perfectly competitive market? O price (P) < average variable cost (AVC) price (P) = 0 %3D price (P) = average cost (AC) price (P) > marginal cost (MC)
Q: As soon as you start comparing the GDP of other nations, you run into two problems. What exactly are...
A: Introduction GDP tells about the goods and services produced in a economy. It tells about the growth...
Q: a. At a required return of 12 percent, what is the NPV of the project? (Do not round intermediate ca...
A: All cash flows are discounted with an appropriate discounting rate to arrive at their present value,...
Q: and average products when Jabot chooses L* to minimize Cost of Qo, given fixed Ko. MP* and AP* are f...
A:
Q: Jonathan's utility of income is represented by: U(I) = V(311) %3D where I represents annual income. ...
A: Given: U(I)=31I
Q: (a) If you are the owner of the only bookstore in a small town, do you have a monopoly? Explain. (b)...
A: Monopoly is one of the market structures out of total 4 market structures. Answer and explanation f...
Q: The production function is Q = 18K + 9L. Rent is $80 and wage is $40. Draw a graph of the isocost an...
A: Q = 18K + 9L Cost = rK + wL = 80K + 40L
Q: Find the value of the primary deficit if the fiscal deficit is 186 and the interest payment by the ...
A: Given: Fiscal deficit=186 Interest payment by the government=131
Q: People need medications, but the poor often cannot afford them. Governments may not provide subsidie...
A: A generic brand is a customer item without a broadly perceived name or logo since it normally isn't ...
Q: 6. Consider Jake and Al again. They are considering going to Portugal or Sweden once the pandemic en...
A: Nash equilibrium is a concept within game theory where the optimal outcome of a game is where there ...
Q: Before an increase in excise duty on tea, 800 persons out of a sample of 1,000 persons were found to...
A:
Q: Suppose the demand curve for pizza can be represented by the equation QD = 20 - 2P. The supply curve...
A: quantity demanded is equals to quantity supplied , now as government impose 1.5 tax per pizza 20 - 2...
Q: d) If trade is allowed so that the market price for strawberries is $20/box, calculate producer surp...
A: Since you have posted a multi-part question, I hereby provide you with the solution to parts a, d an...
Q: The sum of three consecutive terms of an A.P. is 24 and their product is 440. Find the numbers?
A:
Q: In 2002, the price index was 162. In 2003, the price index was 182. The inflation rate between 2002 ...
A: In an economy, inflation takes place when the prices of goods and services increases. Inflation can ...
Q: 1. Suppose the government borrows $20 million more next year than this year. a. Draw and fully label...
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...
Q: Kevin wants to use less fossil fuel by purchasing an electric vehicle. EV's are currently about 50% ...
A: Production means the raw material is converted into finished goods. It means the inputs are used to ...
Q: Potential GDP corresponds to the concept of A aggregate supply. real GDP. C real GDP per capita. agg...
A: PLEASE FIND THE ANSWER BELOW.
Q: In the table below, fill in the missing blanks to complete the summary of the effects of changes in ...
A: When the price of a product is low, so is the supply. When the price of a product is high, so does t...
Q: Consider a monopoly with the following marginal cost and demand curves: MC=2Q+200,p=2,600−2Q d. Do ...
A: Monopoly is the single seller in the market, Monopoly price and quantity are determined when margina...
Q: A company has the head office at Ukraine and a branch at London. The personnel director wanted to kn...
A:
Q: Economic profits discussion
A: The difference between the money collected from the sale of a product and the costs of the inputs re...
Q: Designers of the Federal Reserve System were concerned that the Fed might form policy favorable to o...
A: The Federal Reserve System is the US government's central banking authority. It serves as the US gov...
Q: Questions of the day: economics A man decides to deposit Dollar 2730 at the end of each year in a ba...
A:
Q: Suppose a firm produces the following products. Calculate and fil in the missing values in the table...
A: PLEASE FIND THE ANSWER BELOW.
Q: Exhibit 21-3 Marginal Physical Total Total Product of Variable | Marginal Variable Fixed Input Input...
A: Costs refers to the amount of money required to produce the goods and services by the producers. It ...
Q: Twenty people were attacked in London by a disease and only 18 survived. Will you reject the hypothe...
A:
Q: SARAH makes $43,000 per year, is single, and lives in Connecticut. She has $19,000 in Direct Subsidi...
A: Sarah is earning an income of $43000 per year. She has subsidized and unsubsidized loans of differen...
Q: Suppose Sarah and Julia both work at a bakery making bread and muffins. In an hour, Sarah can either...
A: Here, given information is: Sarah and Julia work for 8 hours. Sarah can either make 10 loaves of br...
Q: Charter schools, contrary to expectations, have increasedschool integration. T or F?
A: In the United States, charter schools are primary or secondary schools that are funded by taxes and ...
Q: 8. Why has party organizational strength grown more dramatically in the South than in other regions...
A: Theories of party organizational resurgence suggest that the strength of party organizations counter...
Q: Suppose that in the next few years Saudi Arabia oil production increases significantly. a. How will ...
A: Terms of trade are basically defined as the ratio of the index of export prices to the index of impo...
Q: In general, different jobs pay different wages. One overarching reason is that different jobs have d...
A: Answer -1 Compensation salary refers to the additional pay given to an employee in exchange for par...
Q: its capacity constraint so that the collusive equilibrium can si 1? (Hint: The idea here is that, by...
A: *Answer:
Q: Between 2006 and 2015, by how much did a. the labor force change? million D. unemployment change? mi...
A: The labor force consists of all the people who are able-bodied and can work in a particular or works...
Q: How does the concept of opportunity cost apply to personal decisions when you have limited income an...
A: Opportunity Cost : The opportunity cost is referred as a forgone benefit that would have been derive...
Q: Bob wins a lottery and receives $20,000 per year until he retires. As a result, Ke decides to work 3...
A: The income effect is a change in demand for a good or service caused by a change in a consumer's pur...
Q: A committee of 4 people is to be appointed from 3 officers of the production department, 4 officers ...
A:
Q: 11. Assume the securities are all issued by the same firm. From the investor's standpoint, rank the ...
A: Preferred stock:- Preferred stock consists of parts of a firm's equity that pay profits to stakehold...
Q: A pole for an electric distribution cost P10k and is expected to last for 7 years before replacement...
A: Interest rate is the rate of interest that defines the saving function. It means as the interest rat...
Q: On his recent birthday on April 18, 2012, Cai was given by his mother a certain amount of money as b...
A:
Q: Exhibit 15.3 S'm Sm Dm Interest rate in
A: Money demand (Dm) slopes downward, implying an inverse relationship between interest rate and quanti...
Q: Show your work. An MBA applies for a job in two firms X and Y. The probability of his being selected...
A:
Q: Briefly contrast the difference between equilibrium market outcomes in a monopoly, oligopoly, and pe...
A: The markets are the place where the buyers and the sellers tend to interact and meet with each other...
Q: average product of c- units of capital and 5 are employed? whole number onlv
A: Production Function is given as Q = 3K + 4L Average Produc...
Q: 1. The technology of interaction for a contractual relationship is given by the matrix below. 2 H L ...
A:
Q: A project with a smaller payback period is better than projects with higher payback period. A. Alw...
A: Payback Period:- The payback period can be explained as the amount of time it takes to recoup the p...
Q: In October 2015, amid rising fears about the security of credit card transactions, financial institu...
A: Rebuy means to buy back something.
Q: Question 2 Customs Assume that the country initially has free trade with the outside world. A duty o...
A: In simple words we can say that a producer surplus is considered as the difference between the value...
Q: point(s) possible The table has data from the nation of Atlantica. Disposable income (trillions of 2...
A: Here, the given data shows the consumption level at different disposable income in the nation of Atl...
Q: The approach to ethical behavior that proposes that actions and plans should be judged by their cons...
A: Ethical behaviour of a person is Influenced by his moral development acha the organisational culture...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Assume that apples are produced in a perfectly competitive market. Grande’s Orchard is a typical firm that grows and sells apples. Currently, Grande earns zero economic profit, and the market price of apples is $10 per bushel. (a) Draw a correctly labeled graph showing Grande’s demand curve, average total cost curve, and marginal cost curve, and show the profit-maximizing quantity, labeled QG . (b) Suppose an increase in the popularity of apple cider increases the demand for apples. How will the increase in the demand for apples affect Grande’s economic profit in the short run? Explain. (c) What will happen to Grande’s economic profit in the long run? Explain. BoldItalicUnderlineAssume that apples are produced in a perfectly competitive market. Grande’s Orchard is a typical firm that grows and sells apples. Currently, Grande earns zero economic profit, and the market price of apples is $10 per bushel. (a) Draw a correctly labeled graph showing Grande’s demand curve, average total cost curve, and marginal cost curve, and show the profit-maximizing quantity, labeled QG . (b) Suppose an increase in the popularity of apple cider increases the demand for apples. How will the increase in the demand for apples affect Grande’s economic profit in the short run? Explain. (c) What will happen to Grande’s economic profit in the long run? Explain.Suppose the market for beans is perfectly competitive. The average total cost and marginal cost of growing beans in the long run for an individual farmer are illustrated in the graph to the right. According to the graph, the long run equilibrium price for beans is $ per box. (Enter a numeric response using a real number rounded to two decimal places.) C Price and cost (dollars per box) 10- 9- 00 N 1 0 10 MC 20 30 40 50 60 70 80 Quantity of beans (boxes per week) ATC 90 100 N
- Assume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis. It may help to create your own cost table and fill in columns for Marginal Cost and Average Total Cost based on the Total Cost information below. a.What is the level of profit for this firm at the profit maximizing output? b.To convince yourself that the quantity you found is indeed the profit maximizing quantity, try calculating what the profit would be at the next higher level of output. What did you find? c. What do you predict will happen in this market over the long run?The following graph shows the daily cost curves of a firm operating in a perfectly competitive market. Suppose the market price for the good is $80 per unit. Use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss at the market price of $80 per unit if the firm chooses to produce the profit-maximizing quantity of output. PRICE AND COST (Dollars) 100 90 80 70 60 50 30 20 10 0 0 MC 5 ATC AVC 10 15 20 25 35 QUANTITY (Thousands of units) 30 At the market price of $80 per unit, this firm will 40 45 50 Profit or Loss and will in the short run.Farmer Jones grows apples. The average total cost and marginal cost of growing apples for an individual farmer are illustrated in the graph to the right Assume the market for apples is perfectly competitive 40- According to the graph, farmer Jones will eam profit (positive economic profit as opposed to losses) at any market price above $ 10 per box. (Enter a numeric response using an integer) Assume that the market price specifically is $24 per box Iffarmer Jones produces the profit maximizing quantity, what will be her profit? S 36- To more easily identify the price and quantity, click on the graph to the nght, and then adjust the slider to change the price and quantity Each increment will increase the prce by $2. 32- MC 28- 24- 20- 16- ATC 12- 8- 4- :46 10 20 30 40 50 60 70 80 90 100 Quantity of Apples (boxes per month) Price and cost (dollars per box)
- The graph below shows cost curves for a firm operating in a perfectly competitive market. Note: 20 Blue curve = AVC Green curve = ATC Red curve = MC Black line is demand Quantity of Apples Suppose that the equilibrium price is $17.66 (black line). This firm is earning OLosses O Profits OZero Economic Profits (Break-even point) Price of ApplesThe graph shows the average total cost (ATC) curve, the marginal cost (MC) curve, the average variable cost (AVC) curve, and the marginal revenue (MR) curve (which is also the market price) for a perfectly competitive firm that prođuces stuffed animals. Answer the three accompanying questions, MC ATC $320 $300- AVC assuming that the firm is profit-maximizing and does not shut $200 down in the short run. MR-P SI50 What is the firm's total revenue? 205 260 336 365 Quantity 78000 What is the firm's total cost? 126100 What is the firm's profit? (Enter a negative number for a loss.) 48100 PriceSuppose a perfect competitive firm’s total cost curve and marginal cost curve are TC= Q2+ 4Q+100 Also suppose that the market equilibrium price is given as $20. A. Find equations for the firm’s fixed cost (FC), variable cost (VC), average total cost (ATC), average variable cost (AVC) and Marginal cost (MC). B. Find the output level that minimizes average total cost (ATC). C. Calculate the price below which a firm in the market will not produce any output (the shutdown price).
- The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (quantity-0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to drawit. To refer to the graphing tutorial for this question type, please click here Price and cost 18 15 14 13 12 10 19/21 SUBMIT ANSWER 13 OF 21 QUESTIONS C OMPLETED 28 MacBook Pro 금□ F7 F8 F9 F1o F2 F3 F5The following problem traces the relationship between firm decisions, market supply, and market equilibrium in a perfectly competitive market. a. Complete the following table for a single firm in the short run. Using the information in the table, fill in the following supply schedule for this individual firm under perfect competition and indicate profit (positive or negative) at each output level. (Hint: At each hypothetical price, what is the MR of producing 1 more unit of output? Combine this with the MC of another unit to figure out the quantity supplied.)The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs MC ($) Quantity of Ear Buds 5 10 15 20 25 30 35 40 2.00 2.45 3.55 4.00 5.50 5.98 8.52 pairs ATC ($) 2.00 2.00 2.15 2.50 2.80 3.25 3.64 4.25 Check my work Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? d. Now assume the market price is $5.50 per pair, and Buddies produces the…