3 The figure below shows the cost curves for a profit-maxmizing firm in a periecny competitive narket. If the market price is $30 and if the firm is producing outpul. the amount of its total variable cost? Price TVC and cost TO ATCHO MC ATC AVC PAL $40.50 36.00 30.00 MR 22.00 7LEE 20.00 130 180 240 Quantity O S7,200 b. $6,480 C. $5,400 d. $3,960
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- What two lines on a cost curve diagram intersect at the zero-profit point?Why will profits for films in a perfectly competitive industry tend to vanish in the long run?Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
- Under which of the folowing examples is t likaly that the accounting profit is positive and the economic profit is negative? OA Using a restaurant you purchased to sell Menican food instead of talian food. OR It you use a diamond mine as a touriet atraction instead of using it for mining. Oc Opering a bank branch near a university campus. OD. Such a scenario, where accounting cost is positive and economic profit is negafive, is not possibie.A computer company produces affordable, easyto-use home computer systems and has fixed costs of$250. The marginal cost of producing computers is $700for the first computer, $250 for the second, $300 for thethird, $350 for the fourth, $400 for the fifth, $450 for thesixth, and $500 for the seventh.a. Create a table that shows the company’s output,total cost, marginal cost, average cost, variablecost, and average variable cost.b. At what price is the zero-profit point? At whatprice is the shutdown point?c. If the company sells the computers for $500, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.d. If the firm sells the computers for $300, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.Text Problem 2.5c A firm's cost curves are given in the following table. TFC TVC AVC 50 0 50 150 50 180 50 50 50 9 0 1 2 3 4 5 6 7 8 9 10 TC 50 200 230 250 260 280 310 350 400 50 50 50 50 50 460 530 Suppose market price is $40. The firm will produce 200 210 230 260 - ATC - 150.00 200.00 90.00 115.00 66.67 83.33 52.50 65.00 46.00 56.00 43.33 51.67 300 42.86 350 43.75 410 45.56 480 48.00 53.00 50.00 50.00 51.11 MC - 150 30 20 10 20 30 40 50 60 70 units of output in the short run. (Enter your response as a whole number.)
- 4. A firm's cost curves are given in the following table. TC TFC TVC AVC ATC MC Revenue Profit RO100 RO100 -100 1 140 100 40 40 140 40 60 -80 160 100 60 30 80 20 120 -40 3 170 100 70 23.33 56.66 10 180 10 4 182 100 82 20.5 45.5 12 240 58 5 195 100 95 19 39 13 300 105 6 220 100 120 20 36.66 25 360 140 7 250 100 150 21.42 35.71 30 420 170 8 290 100 190 23.75 36.25 40 480 190 340 240 26.6 37 50 54 200 10 400 100 300 30 40 60 600 200 a. Complete the table. b. Graph AVC, ATC and MC on the same graph. What is the relationship between the MC curve and the ATC and between MC and AVC? c. Suppose the market price is RO 60, how much will the firm products in the short run? How much are the total profits?E. Case_ Ray C. Fair Sharon M.... Q Q Q Search 52 of 1,893 ch Rank Page Order 1.4 You are given the following cost data: TFC TVC 25 25 7 2 25 12 25 18 4. 25 25 25 34 6. 25 46 Download more at Learnclax.com TFC TVC 25 62 8 25 88 If the price of output is $15, how many units of output will this firm produce? What is the total revenue? What is the total cost? Will the firm operate or shut down in the short run? In the long run? Briefly explain your answers.the table below shows the output cost and revenue situation of a firm. Study the table and asnwer the questions that fllows Q TVC TC MC P TR MR 0 0 150 0 200 0 - 1 110 C 110 175 175 175 2 170 320 G 150 I L 3 A D 46 135 405 105 4 250 E 34 120 J M 5 B 445 H 105 525 45 360 F 65 90 K N (a) what is the fixed cost of the firm? Explain your answer (b) determine the values from A-M by showing all workings employed (c) At what quantity and price is the firm in equilibrium position and in what market is the firm oeperating? explain your answer
- 3. You own WYNELL's Fashions, which sells prom dresses. Your firm has the following cost schedule: If vou produce this quantity The average total cost per dress is ... $100 40 $101 41 Your current output is 40 prom dresses, all of which have been sold. You receive a call from an eager potential customer, who offers to pay $150 if you will produce a prom dress for her Calculation space to show your work What would your profit or loss be on the 41st prom dress? (Show your work.)competitive market. If the market price is $30 and if the fitm is producing output, what is the amount of its total vanable cost? 15. The ngure below shows the cost curves for a profit-maxintizing firm in a periecuy Price TVC and cost TC.FTC AY83 MC ATC AVC TVに $40 50 36.00 30.00 MR 22.00 20.00Price and cost $4.00 3.20 2.40 1.60 0 Questraq; not sugamon Isnigiem sunsven lang jam neris MC ITAALS 25006 DMC Sorberg in ATC AVC HONDE SOM= 15152 850 1,700 MR 2,550 D Quantity a. If Elijah produces at the profit-maximizing level of output, how much is his total revenue? How much is his total cost? Briefly explain your calculations. a. How much economic profit is Elijah earning? Briefly explain your calculation.
