Q: Suppose the market for microwave ovens is perfectly competitive. Also suppose a firm that produces…
A: Given information, Fixed cost= 100 ATC at 200 units= 200 ATC at 201 units= 201 Selling price= 500…
Q: QUESTION 1 If your fixed costs are $10,000, your variable costs are $10,000, and your revenue is…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: A firm sells 1,000 units per week. It charges $70 per unit, the average variable costs are $25, and…
A: Following information is provided in the question:Quantity sold per week – 1,000Price - $70AVC -…
Q: Review Questions MC $30 MR ATC AVC 20 15 75 80 100 Output Based on the above graph: 1. At which…
A: Abnormal Profit: When the firm is earning its total revenue more than the total cost it incurs. It…
Q: Consider the following information: TC = 10 + 5Q + Q2 Q = 15 – P Where TC is total cost, Q is the…
A: TC=10+5Q+Q2
Q: 5. The short-run cost function of a competitive firm is c(Q) = 0.1Q3 – 2Q2 + 15Q + 10, when the…
A: In perfectly competitive market, price is constant so it is equal to marginal revenue. At profit…
Q: 60. What is the level of output where the firm will shutdown? Select one: a. Q=40 Ob. Q=60 C. Q=72…
A: AVC (average variable cost) is the per unit variable cost of production and it is calculated by…
Q: Doug's Donut Shop operates in a competitive market and is currently producing 200 donuts. He has…
A: Average Revenue = Total Revenue / Quantity Average Cost = Total Cost / Quantity Profit / Loss =…
Q: hutdown point
A: A firm’s ‘shutdown point’ is the point where it reaches the minimum of its ‘average variable…
Q: Graph represents the cost structure of an individual firm in a perfectly competitive market.…
A: Break even point is defined as the point where total costs of the firm is equal to the total revenue…
Q: 1. Suppose a perfectly competitive soybean farmer is producing soybeans at a loss. a) Explain the…
A: In perfect competition there are large no of buyers and sellers and all the buyers are price taker.…
Q: 6. Deriving the short-run supply curve Consider the competitive market for sports jackets. The…
A: A competitive market is one in which numerous producers compete with one another in the hopes of…
Q: Below what price level would the firm shut-down
A: Shutdown Point is a point at which firms realize they are not getting any benefit for continuing…
Q: Refer to the diagram below:…
A: Answer - Shut Down Point - The point where firm is not able to recover there average variable cost…
Q: MC $30 MR ATC AVC 20 15 75 80 100 Output Based on the above graph: 1. At which point the firm gets…
A: Abnormal profits are the supernormal profits which are in excess of normal profits. Normal profits…
Q: Question 9 Which of the following is(are) correct? A competitive firm will exit the market in the…
A: Economic profit includes a normal profit. Even when economic profits are zero, the firm is earning…
Q: How to calculate profit of loss in perfect competition in short run
A: In the perfect competition; The profit-maximizing condition; MR = MC
Q: 34. In the long run, a profit maximizing]firm will choose to exit a market when a. fixed costs…
A: If a market where there is freedom of entry and exit, the firm that suffer loss will exit from the…
Q: Describe how your restaurant would maximize its short-run profits.
A: When an individual wants to open a business, his primary aim is to earn profit and maximize it by…
Q: 29. In the long run, a profit maximizing firm will choose to exit a market when a. fixei costs…
A: In the short-run, a firm exits a market if it is not able to cover its variable costs, i.e., it…
Q: How does a competitive firm determines its profit-maximising level of output? Explain. When does a…
A: The competitive market is the type of market structure where there are large number of buyers and…
Q: Figure 8 shows a price-taker firm with demand curve, D, a short run cost curve, AC, and marginal…
A: A perfectly competitive firm is a price taker. It means the price is determined by the market…
Q: 1) In the above figure, the perfectly competitive firm's shutdown point is at a price of: $4 per…
A: The shutdown point of a perfectly competitive firm defines a level of operations below which it…
Q: OThe firm is making a profit. OThe firm is making a loss, but should still remain operational. The…
A: there are many cost MC , AVC , AC so when Ac is less than P firm face profit ,so we can analyses the…
Q: 3. For each scenario, determine whether the firm should shut down or not. Don't just write "yes" or…
A: a. R=$6000 VC=$7500 FC=12,000
Q: 7. A firm encounters its 'shutdown point' when
A: To find : When do firm encounter it's shutdown point.
Q: profit-maximizing quantity? 2) Below what price will the firm shut-down? 3) What are operating…
A: The firm keeps on producing as long as it is able to recover the average variable cost.
Q: What is the term for the price at which the firm makes only normal profits? A) Shutdown price. O B)…
A: Profit refers to the situation where the total revenue is greater than the total cost of production.…
Q: QUESTION 9 Using the graph below, determine if the firm should shut down or stay open in the short…
A: according to diagram MR>MC. Revenue is more than its variable and fixed costs. Hence the firm…
Q: (Short-Run Loss) Suppose a firm decides to shut down in the short run. What is the resulting loss?
A: When the price level is charged below the average variable cost, the firm forced to shut down. At…
Q: A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What…
A: Perfect competition is a market structure featuring more number of sellers and buyers in the market,…
Q: Outline the conditions under which a firm should produce in the short run rather than shut down,…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: 330 ATO AVO 15 75 80 100 Output 1-At which point the firm gets abnormal profit? 2- based on your…
A: A perfectly competitive firm maximizes its profits by producing at the point where the marginal cost…
Q: What is the shutdown condition? a.A condition stating when a firm should cease to operate and…
A: The shut-down condition is applicable for short run, where a firm stops production if its revenue is…
Q: 2. Bob’s lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $27 each.…
A: In short-run, fixed costs are of no relevance or importance in making decision related to shut-down…
Q: 15. In the long run, any firm will eventually leave the industry if А. Price does not at least cover…
A: In short run firm can bear loss till P>=AVC but in long run if firm bears loss then leaves the…
Q: 3. A profit-maximizing firm is perfectly competitive and is at long-run equilibrium. The output of…
A: A perfectly competitive market refers to one where a company may readily enter and offer a product…
Q: Use a graph to demonstrate the scenario where a competitive firm would be earning positive profit in…
A: 1) The firm produces at a price where the industry’s supply is equal to its demand at point e and…
Q: 7.3.2 According to the figure below, a firm would shut down in the short run if the price is Price…
A: The shut down price is the minimum price a firm requires remaining open in the short run. That is, a…
Q: When should a firm shut down? In other words, what is the shut down point for a firm in perfect…
A: There are different types of costs that a firm encounters while making production decisions. These…
Q: What is the shutdown decision of the firm? How should a firm decide whether to continue business or…
A: For a perfectly competitive company, where the total revenue of the company, i.e. the product of its…
Q: A competitive firm has the short-run cost function C(y) = 12y3−8y2+30y+12. At what price will the…
A: Let the selling price b "p"Now, TR=p*yTR=pyWe can derive MR from this,MR=dTRdy=p
Q: How does a firm maximise its profit in a perfect compitition? Discuss in detail with help of graphs.…
A: Under perfect competition there are a large number of firms who sell identical products. The buyers…
Q: How does a competitive firm determine its profit-maximizing level of out put? Explain. . When does a…
A: A competitive firm determines its profit maximizing level of output when P= MR= MC When the…
Q: Shazam, a maker of magic wands, is selling in a purely competitive market. Its output is 600 wands,…
A: Given, Output = 600 wands Price = $8 Marginal cost (MC) = $8 Average total cost = $20…
24) What are shut-down losses (if the firm shuts down)?
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- Aegignment lalhat as Cost Of productio1 n00tu ta celd Of afable suow the folleo- ing kind OR cost A fixed Cost varia ble cost CAccerage to fell cost d Total coRt Acerage KAverage fixed cort gmarginal cost J00thatte ald Of your Olon Illestrahon dufferentiate between accocent pornt OF Niew and the elonomist pent ofview 4 Dustinguuh between opportuncty Cort aud money Cost e carable CO8T ittu 12021 BEST QUAL CISE BOOKSdue prdolems the OPTIMI2AION the commodity is given by p=41-0.339 aned in verse demand function for a the cost of thot commodity is ecq) = -0.02 q² +10qt80 - Find the autput level that Find the maximum potit as wet. producing maximizes protit andd verity this indeeed yields a mowimum.Iwkdkeoeokff
- B full explaini need urgent i will 10upvotesMarvel Woodcraft makes fumiture. Marvars expected sales are 21000 bookcases for the quarter. The company begins the quarter with invertory of 3,000 bookcases and warts te heve enough finished beokceses en hand et the end of the auener to provide for 15N of the nest querter's enoected seies of 27000 bookcases. gnoring any begirving iventory r so board feet are required for anch bookcase and the wood costs $2 per board foot, how much will Marvel pay for the bookcases a neads produce during the querter Mte Choe SA o s2900.000 S405.000
- Design a process chart for printing a short documenton a laser printer at an office. Unknown to you, the printerin the hallway is out of paper. The paper is located in a supplyroom at the other end of the hall. You wish to make five stapledcopies of the document once it is prin ted. The copier, located nextto the printer, has a sorter but no stapler. How could you makethe task more efficient with the existing equipment?how do i answer qustion d?Solve this Economicd, e and f
- I need asnwer of Dwhat is theimpact demasnd CurVes of geld 'úsds? when trend ef gdel jeweliyy introduces in pmaiket upply and on when when I When ' income of buyer increases price of fuel tises. governimentcharge taves.YemaOpcumulofed other Compre hosive lass 2The feltowing Ingormation for confer But erfrises is gren below! Dee B1, 20 21 Plan assets (at fair valve) Pojected bonegil obligolion Acemulated other Comprehenaive loss $16000 1,200,000 S03,700 The Service, life of emlnyee is lo yenrs. everayeremaning The amortizahion of Accumulted other Comfre hosaive lass For 2022, using the corridor methale 1B..... ? CSannet wih Camicannw