3. Profit maximization using total cost and total revenue curves Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a market price equal to $20 per cardigan. The following graph shows Amari's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for cardigans for quantities zero through seven (including zero and seven) that Amari produces. ?
Q: the graph input tool to help you answer the following questions. You will not be graded on any…
A: The quantity of labour demanded is computed by locating the amount corresponding to the wage rate on…
Q: The government is considering raising the tax rate on labor income. Explain the supply-side effects…
A: Higher tax rates on labour income and consumption expenditures contribute to less time spent working…
Q: A. Choose and circle the correct effect of the following. 1. The price of fish increased a. The…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: et Services is a manufacture of parts for the commercial aircraft. The company is established in…
A: A cost function [TC(Q)] is a mathematical representation of the relationship between the cost of…
Q: Consider a piece of equipment for which the expenditure at the beginning of period 1 is $40,000.…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: How much does Ireland receive each year and from whom with FDI, what is the money used for or where…
A: Foreign Direct Investment (FDI) has a significant impact on the Irish economy; it is estimated that…
Q: A perfectly competitive firm produces where O a marginal cost equals price, while a monopolist…
A: Answer is “0” The monopolistically competitive firm produces output at point where MC = MR, and…
Q: Explain why the imposition of the price ceiling does not result in a deadweight loss.
A: A price ceiling is the highest price that can be charged by the government for an item or service.…
Q: You are given the following information for an economy. Real GDP $700,000 $750,000 2018 2019…
A: The real GDP refers to the final output, i.e., finished commodities, of an economy produced in a…
Q: 9. A cost-benefit analysis is performed to assess: a. economic feasibility b. operational…
A: Cost-benefit analysis (CBA) is a decision-making tool used to evaluate the potential costs and usual…
Q: Say in a market we have Demand is P = 5 – 0.005Q Supply is P = 0.00125Q a-you will have a graph with…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: “Why are these theoretical concepts of absolute and comparative advantage important for countries as…
A: Introduction International trade is an agreement between two countries to buy, sell, and/or…
Q: The multiplier 15) If the consumption function is C = $800 billion + 0.8Y (a) What is the MPC? (b)…
A: Consumption function, is the relationship between consumer spending and the various factors…
Q: If a country's initial real GDP is $54,504 and its yearly growth rate of GDP is 3.9%, use the Rule…
A: Gross Domestic Product refers to the value of all the new goods and services produced in a territory…
Q: You run a store selling large bear dolls. You estimate that the price elasticity of demand for these…
A: Elasticity is a measure of how responsive one variable is to changes in another. This enables one to…
Q: Consider a monopolist facing the demand curve given by Q=30-0.6P, where Q is the output quantity and…
A: Monopoly is characterised by a single seller selling a unique product
Q: When the interest rate falls, the planned aggregate expenditure curve shifts OA. down; lower OB.…
A: As per the Keynesian model of macroeconomics, total planned expenditure not set in stone as the…
Q: A price increase from $20 to $30 results in an increase in quantity supplied from 80 units to 120…
A: Elasticity measures the responsiveness of one variable to changes in another. This allows one to…
Q: A single-price monopolist is only one seller in the market by definition. This means that the…
A: Monopoly is a market structure where a single seller/producer assumes a dominant position in the…
Q: A manufacturer offers an inventor the choice of two contracts for the exclusive right to manufacture…
A: Introduction The Minimum Acceptable Rate of Return (MARR) is an investment concept that measures the…
Q: 3.3 In the short run, a firm cannot vary its capital, R=2, but it can vary its labor, L. It produces…
A: The production function is the mathematical relationship between a firm's output and the inputs…
Q: Calculate the consumers surplus, producer surplus. and total surplus when no price restrictions are…
A: Consumer surplus is defined as the consumer gain that arises when the maximum price that the…
Q: 1/ Each summer season, Rhoda's Restaurant raises its menu prices and sees rising revenues. In…
A: Demand elasticity is a measure of how responsive the quantity demanded of a particular good or…
Q: please help with 1 and 2 Students taking the Graduate Management Admissions Test (GMAT) were…
A: Probability of occurrence of an event is the ratio of the expected favourable number of cases and…
Q: According to the reading "Gasoline Consumption in the US and Norway", the estimate for the long- run…
A: The elasticity of demand measures how sensitive the amount of an item or service that is sought…
Q: Suppose Devon is a fashionista and buys only denim jackets. Devon deposits $4,000 into a savings…
A: The purchasing power of deposits increases after a year when interest rate is earned on the…
Q: Must we have inequality for economic growth? A. Yes, disparities in income and wealth encourage…
A: Economic inequality is the inconsistent dissemination of income and opportunity between various…
Q: The current gasoline price is 5$ per gallon, and it is projected to increase next year by 5%, 8% the…
A: Given: Current gasoline price = $5 It is expected to increase next year by 5%, 8% the following…
Q: Using the table below (short run)
A: Total cost is the sum of variable cost and fixed cost. i.e., TC = TVC + TFC…
Q: P N S Select one: O a. Panel C O b. Panel B о с. Panel A Q₁ Q₂ (A) D2 P₂ P₁ 52 92 F 91 (B) D P₁ P₂ 2…
A: Since import tariffs increase the cost of importing and this will affect the supply of Canadian cars…
Q: When the price of a product increases by 20 percent, the quantity demanded decreases by 40 percent.…
A: Price elasticity of demand is a concept in economics that measures the responsiveness of the…
Q: Imagine two competitor firms are deciding whether to advertise their products or not. Advertising…
A: Nash equilibrium is the intersection of best response of both players
Q: The State of Chiapas, Mexico, decided to fund a program for improving reading skills in elementary…
A: Equivalent annual cost refers yo an annual cost of operating, owning, and maintaining an asset over…
Q: How does a business owner applying the concept of marginal costs decide how much to produce? For…
A: The marginal cost is the cost of producing one additional unit of output or the cost of consuming…
Q: In today world price discrimination is commonly used by various companies to enhance their profit.…
A: Price discrimination can be defined as a microeconomic pricing strategy in which goods of an almost…
Q: Q4. REI (Recreational Equipment Inc)'s 2022 financial report shows a COGS (Cost of Sales) of…
A: Given COGS = 1,981,654 $ Inventory at end = 621,678 $
Q: 21. When output (Q) = 20, AVC = 30, and ATC = 40, calculate TFC. (NOTE: TC = TFC + TVC) 22. A…
A: (Note: Answered only 22 as stated by the student) Monopoly A company that sells its product…
Q: A shift in the supply curve of bicycles resulting from higher metal prices will lead to higher…
A: Input prices refer to the prices of the resources or factors inputs that are used to produce a good…
Q: If national income Y = 10,400, disposable income is Yd = 8,800 (assuming transfer payments are…
A: Private domestic investment refers to the amount of capital investment made by private businesses…
Q: I'm doing economics homework and the question is asking If taxes were cut by $1 trillion and the MPC…
A: ]MPS basically stands for Marginal Propensity to Save, which is a term used in macroeconomics to…
Q: What is the contribution to 2021 U.S. GDP in the following scenario? A car company produces a…
A: Gross Domestic Product(GDP) is the total amount of all goods and services produced within a…
Q: Need help asap . Pls be correct The minimum wage regulations does not lead to a increase in the…
A: Minimum wage law is a government regulation that sets the minimum hourly wage rate that employers…
Q: COUNTRY A COUNTRY B 7 2 TABLES 4 DESK 1 b. Using the information provided in the table below, answer…
A: "The production possibility frontier curve shows that the possible combination of two goods produced…
Q: Elmira has a monthly income of $200 that she allocates between two goods: Beef (B) and Potatoes (P).…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: What is the money multiplier with a reserve requirement of 15%?
A: Introduction The money multiplier is a concept used in macroeconomics to measure the maximum…
Q: 31. igure 4, Good B ving Figure 4 Increasing utility Good A (a) This individual receives no…
A: Utility refers to the satisfaction. The aim of any consumer is to attain maximum utility subject to…
Q: Determine the NPW of project A for the common analysis period (as identified in question#1). Assume…
A: The present worth of a project or an investment refers to its current value in accordance with its…
Q: Will insurance prices in 2024 erase the momentum of lower health costs despite the IRA prescription…
A: The cost of health insurance premiums and prescription drugs can be influenced by a variety of…
Q: Year Real GDP Nominal GDP 2019 $15,292.67 $17,081.38 2020 $17,822.90 $18,350.11 2021 $18,521.37…
A: GDP growth refers to an increase in a country's GDP over a certain period of time. GDP expansion…
Q: In the hedonic model, what is the alternative hypothesis? The price impact is 0 There is a…
A: The hedonic model is a method used in economics to estimate the value of a particular good or…
Please check/fix my answers and complete the problem. For the first graph, the orange line was already there.
Thank you!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose Becky runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Becky's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Becky produces, including zero shirts. 200 175 Total Revenue 150 Total Cost 125 Profit 100 75 -25 2. 3 4 6. 8. QUANTITY (Shirts) 50 25 TOTAL COST AND REVENUE (Dollars)Suppose Jake runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Jake's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for frying pans quantities zero through seven (inclusive) that Jake produces. 200 175 Total Revenue 150 Total Cost 125 Profit 100 75 50 25 -25 1 2 6 8 QUANTITY (Frying pans) Calculate Jake's marginal revenue and marginal cost for the first seven frying pans he 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 at each quantity. (? 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 1 2 3 4 5 6. QUANTITY (Frying pans) Jake's profit is maximized when he produces frying pans. When he does this, the marginal cost of the last frying pan he…Calculate Jacques's marginal revenue and marginal cost for the first seven teddy bears he 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. 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 10 2 3 4 5 7 8 QUANTITY (Teddy bears) Jacques's profit is maximized when he produces , which is teddy bears. When he does this, the marginal cost of the last teddy bear he produces is than the price Jacques receives for each teddy bear he sells. The marginal cost of producing an additional teddy bear (that is, one more teddy bear than would maximize his profit) is s , which is than the price Jacques receives for each teddy bear he sells. Therefore, Jacques's profit-maximizing quantity corresponds to the intersection of the curves. Because Jacques is a price taker, this last condition can also be written as COSTS AND REVENUE (Dollars per teddy bear)
- Suppose Rosa runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Rosa's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven teddy bears that Rosa produces, including zero teddy bears. 200 175 Total Revenue 150 125 Total Cost Profit 100 75 50 25 -25 1 3 4. 8 QUANTITY (Teddy bears) TOTAL COST AND REVENUE (Dollars)3. Profit maximization using total cost and total revenue curves Suppose Ana runs a small business that manufactures shirts. Assume that the market for shirts is a perfectly competitive market, and the market price is $20 per shirt. The following graph shows Ana's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Ana produces, including zero shirts. TOTAL REVENUE, TOTAL COST, AND PROFIT (Dollars) Total Revenue A 125 100 Total Cost ☐ Profit 200 175 150 75 50 ༔་ཎྜ་ ྴ་སྐྱ ིི་ཐྭ་8་མ་° 1 2 3 4 5 6 7 8 QUANTITY OF OUTPUT (Shirts) (?) Calculate Ana'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. Note: Be sure to plot marginal values between the appropriate whole unit values. For instance, plot…3. Profit maximization using total cost and total revenue curves Suppose Latasha runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $20 per teddy bear. The following graph shows Latasha's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Latasha produces.
- 3. Profit maximization using total cost and total revenue curves Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly competitive market structure for cardigans with a market price equal to $20 per cardigan. The following graph shows Amari's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for cardigans for quantities zero through seven (including zero and seven) that Amari produces. 200 175 8 TOTAL COST AND REVENUE (Dollars) 8 3 8 12 10 0 1 0 0 0 O QUANTITY (Cardigans) D Total Cost 7 6 Total Revenue Profit ?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…3. The components of marginal revenue Alex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $80,000 to $40,000 per fire engine. Note that while Alex 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 $40,000 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 $40,000. dollars per fire engine) PRICE (Thousands Alex 200 180 160 140 120 100 80 60 40 20 0 0 + 1 True + False 2 + 4…
- 3. Profit maximization using total cost and total revenue curves Suppose Sam runs a small business that manufactures shirts. Assume that the market for shirts is a perfectly competitive market, and the market price is $20 per shirt. The following graph shows Sam's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Sam produces, including zero shirts. TOTAL REVENUE, TOTAL COST, AND PROFIT (Dollars) 200 175 150 125 100 75 50 25 a -25 0 3 6 QUANTITY OF OUTPUT (Shirts) 2 4 5 Total Cost 7 8 O Total Revenue Profit (?)3. The components of marginal revenue Alex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced six fire engines, but he has decided to increase production to seven fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $100,000 to $50,000 per fire engine. Note that while Alex gains revenue from the additional engine he sells, he also loses revenue from the initial six engine 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 six 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. PRICE (Thousands of dollars per fire engine) 250 225 200 175 150 125 100 75 50 25 Alex 0 1 2 3 4 5 QUANTITY (Fire…3. The components of marginal revenue Lorenzo's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Lorenzo produced five fire engines, but he is considering increasing production to six fire engines. The following graph shows the demand curve Lorenzo faces. As you can see, to sell the additional engine, Lorenzo must lower his price from $105,000 to $90,000 per fire engine. Note that although Lorenzo would gain revenue from the additional engine he sells, he would also lose revenue from the initial five engines because he would have to sell them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. PRICE (Thousands of dollars per fire engine) 150 135 120 105 90 75 60…