4. Profit maximization in the cost-curve diagram Suppose that the market for blenders is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Profit or Loss 80 70 АТС 30 AVC 20 MC 10 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of blenders per day) blenders per day. In the short run, at a market price of $50 per blender, this firm will choose to produce PRICE (Dollars per blender)
Q: How to evaluate the net economic change brought about by an event?
A: Economic Impact:- The entire proportion of total money flowing into a specific region as a result…
Q: National savings is calculated as the sum of private and public savings. Private savings is equal to…
A: GDP is the market value of final goods and services produced by an economy during a given period of…
Q: Currency $150 billion Bank reserves $400 billion $1,200 billion $2,400 billion $60 billion Checkable…
A: * SOLUTION :-
Q: D (units sold) Determine the value of the maximum profit. O A BD53,000 O B. BD52.500
A: Profit maximization is a process business firms undergo to ensure the best output and price levels…
Q: Fill in the blank using the number that corresponds to the correct word or phrase:
A: Gross Domestic Product (GDP) is defined as the value of all final goods and services produced in an…
Q: What would it mean if the elasticity of demand for a good was zero? Explain whether it can be…
A: The answer is as follows:-
Q: Economists who support a hands - off approach believe that a cause of business cycles is O A.…
A: The cyclical movement of an economy as it swings from growth to recession and again is known as an…
Q: Brexit and Covid-19 restrictions may result in a recession. How can the UK government and Bank of…
A: When recession occur in the economy because of Covid-19 restrictions then UK government and Bank of…
Q: What is land property
A: Land: It refers to the asset of the people. More land with the people shows that are rich. The less…
Q: When money serves as a mechanism for transforming current income into future purchases, it is…
A: Money is a financial asset which is used to buy goods and services
Q: 7
A: The inflation rate is the rate of an increase in the price level of goods and services over a period…
Q: What are the positive and negative effects of migration in a particular country?
A: An economic migrant refers to someone who emigrates from one location to another, even across…
Q: A basket of products and services cost $400 in the base year. If the Consumer Price Index (CPI) in…
A: CPI measures the price of market basket of goods and services bought by a consumer. Inflation rate…
Q: O 6.38 percent
A:
Q: 5. An economy has two industries: services and manufacturing. To produce $1 of services requires 20c…
A: Let service be denoted as S and manufacturing as 'M' Given , 1$ of S requires = 0.2$ of S + 0.4 M…
Q: Price of Quantity of Total Marginal Utensil Utensils demanded Revenue Revenue $50 100 $45 200 $40…
A: The sum of money that a firm earns without deducting the expenses is called revenue.
Q: If aggregate demand is increased by 4500 and MPC is 0.75, what is the increase in Y?
A: Aggregate demand (AD): - It is the total demand for goods and services in an economy at a particular…
Q: How do we measure economic growth/development? Enumerate and explain each tools and models.
A: Economic growth basically refers to an increase/rise in an economy's capacity to develop goods and…
Q: Suppose there are two consumers in the market for a good, consumer 1's inverse demand function is…
A: Consumer 1's inverse demand function: p = 80-2q1 Consumer 1's demand function: 2q1 = 80-p q1 = 80-p2…
Q: Assume that Derryland and Whetonia each has 40 labor hours available and that there is no trade.…
A:
Q: annual revenue is OA. 59,878 в. O B. 51,324 O C. 25,662 OD. 42,770
A: Given the fixed cost = $189000 Total revenue = $473000 Variable cost = 473000 x 51% = 241230
Q: Currency $150 billion Bank reserves $400 billion Checkable deposits $1,200 billion Time deposits…
A: Given; Currency= $150 billion Bank reserves= $400 billion Checkable deposits= $1200 billion Time…
Q: If a country is rich in natural resources, why is it that the people are experiencing a food…
A: There are 3 sector in the economy . 1. Primary sector :- agricultural activities etc 2. Secondary…
Q: Question 12 Under unconditional most favored nation trade, when a nation extends some privilege or…
A: The statement is - FALSE.
Q: QUESTION 4 If the demand equation for an item is D(x) = -5.0x + 80 and a supplier is willing to…
A: Equilibrium is achieved at a point where demand curve intersects the supply curve.
Q: We are more tolerant of the deadweight loss from monopolistic competition than that of monopoly…
A: In monopoly and monopolistic competitive firm, profit is maximised at a point where marginal revenue…
Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…
A: Comparative advantage basically refers to an economy's ability to produce a certain item or service…
Q: The number of children born in a city during a period was 22,500 and the average population of the…
A: The crude birth rate is the ratio between the number of live birth and the average population per…
Q: Q7: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer:…
A: A perpetuity is a kind of financial instrument that pays out for an unlimited amount of…
Q: What goods and services are currently priced in Bitcoin? Give specific examples of goods and…
A: First part People are buying pornography, patio furniture, and a home coronavirus test with…
Q: According to the Austrian business cycle theory, a key feature of a deflationary depression is A)…
A: According to the Austrian business cycle, business cycle occurs due to excessive credit created by…
Q: Question 6 An engineering company is considering the purchase of one of the following three…
A:
Q: Being in poverty is really a combination of individual and structural reasons. Compare the…
A: Poverty is a global problem that affects nearly half of the world's population. Its ramifications…
Q: If C(x) = 19,000 + 400x – 3.6x2 + 0.004x³ is the cost function and p(x) = 1,600 – 9x is the demand…
A: Given: TC(x)=19,000+400x-3.6x2+0.004x3 P(x)=1,600-9x Now, TR=P×Q TR=(1600-9x)x (where x is…
Q: Q (1) If the total costs function of a particular economic project is as follows: Required: Find the…
A: The formula for marginal cost and average cost are: 1. Marginal Cost (MC) = ∂Total Cost / ∂Quantity…
Q: Does Elon Musk suffer from scarcity? Explain.
A: Scarcity is one of the core pillars of the economics subject.
Q: When describing the Herfindahl-Hirschman Index (HHI) in class, one slide suggested, “Weight each…
A: Herfindahl-Hirschman Index (HHI) is used to determine market competitiveness before and after Merger…
Q: Which of these can create an output gap: i) High inflation ii) Low inflation iii) Full employment…
A: The output gap is a metric. It calculates the difference between actual and prospective output in a…
Q: 2. Activities incduded (and not included) in the calculation ofGDP The gross domestic product (GDP)…
A: When talking about gross domestic product, it can be said that it only include output that is…
Q: The price elasticity of gasoline supply in the U.S. is 0.6. If the price of gasoline rises by 10%,…
A: Given: Price elasticity of gasoline supply in U.S. = 0.6 Rise in Price of gasoline = 10% To Find:…
Q: is a college wrong to admit students based on race and ethnicity using a quota system? why or why…
A: The answer is as follows:-
Q: True or false. I need help with both. Commodity money is money that has no intrinsic value. True…
A: The economics as a study is based upon the basic idea that the resources which the economies have…
Q: Assume soybeans are produced by a perfectly competitive, constant cost industry. Fresh Fam is a…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: Suppose you have $12 to buy apples or oranges. The price of both apples and oranges is $2, and the…
A: Marginal Utility is the value of utility that consumers get from consuming an additional unit of the…
Q: A coupon bond will make 20 annual coupon payments of $5,000 each and will pay a face value of…
A: The annual coupon value is $5000. percentage of face value=5000100000*100=5% The coupon rate is…
Q: You purchase 6 rutabagas, each weighing 3 pounds. After cleaning the rutabagas, you have 15 1/3…
A: The percent yield refers to the actual yield divided by the expected yield. Yield is a measure of…
Q: Price Real Level GDP 128 $ 18 $ 2 $ 3 $ 1 $ 5 125 20 4. 122 22 3. 119 24 4 116 26 10 1 In the…
A: We know that Real GDP = C + I + G + (X - M) Let us complete the given table using the above formula.…
Q: and your spouse are in good health and have reasonably secure jobs. Each of you makes about $45,000…
A: DINK full form is double income, no kids.
Q: Labor Output 1 10 18 25 4 30 33 6. 34 7 35 If the workers are paid $18 per hour, the price of the…
A: Labour Output Labor Cost Fixed cost total cost Total Revenue Profit 1 10 18 100 118 200 82 2 18…
Q: What aspects & principles characteristic of non-market systems are important in our market economy?
A: A non-market system is an administered price system in which the prices of properties are set by an…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- What two lines on a cost curve diagram intersect at the zero-profit point?The following graph plots daily cost curves for a firm operating in the competitive market for rompers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. (?) PRICE (Dollars per romper) 50 45 40 3.5 30 20 15 10 10 5 0 + 0 2 MC ATC AVC 4 6 8 12 14 16 QUANTITY (Thousands of rompers per day) 10 18 H 20 Profit or Loss100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)
- 4. Profit maximization in the cost-curve diagram Suppose that the market for wind chimes is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 40 36 Profit or Loss 32 28 24 АТC 16 12 AVC 8 MC 4 + 2 4 6 8 10 12 14 16 18 20 QUANTITY (Thousands of wind chimes per day) 20 PRICE (Dollars per wind chime)4. A puppet maker calculates that the yearly cost of running his manufactory is $14,000. Additionally it costs him $60 to create each of his puppets. The price per puppet is determined by the following price-demand equation: p=500–2x a. Find the Cost equation for the total number of puppets produced and sold Find the Revenue equation for the total number of puppets produced and sold b. c. How many puppets does he need to make and sell to break even? d. Use the Cost and Revenue equations to find the Profit function What is the price that he needs to charge if he wants to sell exactly 80 puppets? e.Aplia Homework: Production and Cost in the Firm 4. Profit maximization using total cost and total revenue curves Suppose Ana runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a price-taker market, and the market price is $10 per teddy bear. 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 teddy bears that Ana produces, including zero teddy bears. 125 100 75 P 0 2 QUANTITY (Teddy bears) 6 Total Cost ☐ 8 *** Total Revenue A Profit (?)
- Suppose Larry runs a small business that manufactures shirts. Assume that the market for shirts is a price-taker market, and the market price is $10 per shirt. The following graph shows Larry'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 Larry produces, including zero shirts. 125 100 TOTAL COST AND REVENUE (Dollars) 25 ☐ Total Cost ☐ -50 0 1 2 3 4 5 6 7 8 QUANTITY (Shirts) Total Revenue A Profit (?) Calculate Larry's marginal revenue and marginal cost for the first seven shirts 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. 25 2 COSTS AND REVENUE (Dollars per shirt) 0 1 2 3 5 6 7 8 QUANTITY (Shirts) Marginal Revenue Marginal Cost Larry's profit is maximized when he produces is shirts. When he does this, the marginal cost of the previous shirt he…Suppose Felix 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 Felix'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 Felix produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 50 25 0 -25 0 1 ● ^ 2 O ☐ A ☐ A 3 4 5 QUANTITY (Frying pans) O ☐ 6 Total Cost ☐ 7 8 o Total Revenue Profit ? image 1 Calculate Felix'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.Suppose Hubert runs a small business that manufactures shirts. Assume that the market for shirts is a price-taker market, and the market price is $10 per shirt. The following graph shows Hubert'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 Hubert produces, including zero shirts. TOTAL COST AND REVENUE (Dollars) 125 100 75 50 25 -25 -50 0 0 1 2 ☐ ■ U 3 4 5 QUANTITY (Shirts) L 6 Total Cost 7 8 Total Revenue Profit ? Calculate Hubert's marginal revenue and marginal cost for the first seven shirts 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.
- Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. PRICE (Dollars per watch) 100 90 80 70 60 50 40 30 20 10 0 0 MC ATC AVC + + 10 20 30 40 50 60 70 80 QUANTITY (Thousands of watches per day) 90 100 Profit or Loss ?explain what is happening in this graphs3. Profit maximization in the cost-curve diagram Suppose that the market for frying pans is a competitive market. The following graph shows the daily cost curves of a firm operating in this market Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Profit or Loss 80 70 ATC 60 50 40 30 AVC 20 MC 10 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pans per day) In the short run, at a market price of $50 per pan, this firm will choose to produce 37,500 pans per day. PRICE (Dollars perpan)