Firm A: a) calculate the firm's profit or loss. b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule Firm B: a) calculate the firm's profit or loss. b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule. Firm C: a) calculate the firm's profit or loss. b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule. 4. For cases A through C below, would you operate or shut down in the short-run. 1 ABC Total revenue: 2,000 5,000 5,000 Total cost: 1,500 6,000 7,000 Total fixed cost 500 1,500 1,500 Total variable cost 1,000 4,500 5,500 Firm A:

Firm A: a) calculate the firm's profit or loss. b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule Firm B: a) calculate the firm's profit or loss. b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule. Firm C: a) calculate the firm's profit or loss. b) explain why would you decide to operate, or shut down in the short-run using the operate or shut down rule. 4. For cases A through C below, would you operate or shut down in the short-run. 1 ABC Total revenue: 2,000 5,000 5,000 Total cost: 1,500 6,000 7,000 Total fixed cost 500 1,500 1,500 Total variable cost 1,000 4,500 5,500 Firm A:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The packaged milk market in Pakistan is perfectly competitive. (1) Some firms in the market are making profit, others are having losses. Draw and explain graphs showing MC, ATC, MR, AR, price and quantity of output to illustrate these situations. (2) In the short run some of these firms may decide to shut down temporarily. In the long run some of these firms may exit the market, and new firms may enter. Draw and explain graphs to show these situations and short run and long run supply curves. (3) If firms can enter and exit the packaged milk market in the long run but not in the short run, show how a decrease in demand due to lower incomes of Pakistani consumers during COVID Pandemic affects price and profitability.
The packaged milk market in Pakistan is perfectly competitive.i. Some firms in the market are making profit, others are having losses. Draw and explain graphs showing MC, ATC, MR, AR, price and quantity of output to illustrate these situations. ii. In the short run some of these firms may decide to shut down temporarily. In the long run some of these firms may exit the market, and new firms may enter. Draw and explain graphs to show these situations and short run and long run supply curves. iii. If firms can enter and exit the packaged milk market in the long run but not in the short run, show how an increase in demand due to rising incomes of Pakistani consumers affects price and profitability.
Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. A loss should be entered as a negative number. Check my work b. Given a price of $8 per gift box, how many boxes of chocolate should Choco Lovers produce? gift boxes What will the profit or loss be per gift box? 24 per gift box C. Suppose that Choco Lovers raises the price to $10 per gift box. Now how many boxes should Choco Lovers produce? gift boxes What will the new profit or loss be per gift box?
Draw and describe a diagram representing the cost curves – MC, AC, and AVC – for a profit-maximizing firm under perfect competition. Show U-shaped AC and AVC curves. Label the breakeven and shut down prices. Also, show a price between the breakeven and shut down prices and explain how the firm decides on its profit-maximizing/loss-minimizing output level at that price and show how the amount of profit or loss can be shown in the diagram. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Give typing answer with explanation and conclusion Give an example of a business that ceased production. Was the company's decision to stop production a shutdown or a decision to exit the market? How do you know?
Price MC ATC MRDARP Quantity 12. According to ACDC, what does MR DARP stand for? Marginal Revenue, Demand Average Revenue, Price 13. According to the graph above, is the company making a profit, breaking even, or a loss? How do you know? 14. What happens if the ATC is below the MR line? Draw what this would look like. 15. What happens if the ATC is above the MR line? Draw what this would look like.
Help Save & Exit Submit The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Smitten, a perfectly competitive firm that produces children's mittens in a competitive market. Smitten's Production Costs Quantity (pairs of mittens) 15 Marginal Cost (dollars) $1.60 Average Total Cost (dollars) $1 20 2.00 1.25 25 2.45 1.49 30 3.55 4.00 1.83 35 2.14 40 5.50 6.00 8.50 2.56 45 2.94 50 3.5 Instructions: In part a, enter your answer as a whole number. In parts b, c and d, round your answers to 2 decimal places. a. If the market price of children's mittens is $6.00 per pair, how many pairs of children's mittens should Smitten produce per week to maximize its profits? pairs of mittens b. When the market price is $6.00, what is Smitten's average total cost at the profit-maximizing quantity of children's mittens? 24 c. What are Smitten's weekly profits if the market price is $6.00 per pair and the firm produces the profit-maximizing quantity of mittens? p..........: d.…
Q2. Ramzah owned a burger stands along the beach. Figure 2 shows Ramzah’s cost curves. Figure 2: Market for Burger (a) What is Perfect Competition? (b) If the market price of a burger is $4, what is Ramzah’s profit-maximizing output? (c) Calculate the economic profit that Ramzah’s makes. (d) With no change in demand or technology, how will the price change in the long run? (e) Distinguish between technological efficiency and economic efficiency.
As fast as you can please! Adrian decides to open a new ready-to-wear skirts brand. While making his study, he noticed that his fixed cost of production is 120 dollars. Following the information.Jacob wants to do a marginal analysis to help him decide if he shall enter the market. a. Define and find the shut-down price and the shut-down quantity for Jacob’s firm Explain the way you identify these two values. b. Find the marginal revenue and determine the quantity that maximizes Jacob’s output? Explain your answer and provide the formula. c. According to your calculations, what is your advice for Jacob? Should he stay or leave the market? Explain your answer. d. Calculate the value of the profit realized by the firm.
6.a) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of the point would Penny's Parasols be certain to close down? A, B, C, D, or E. Explain: b) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which point(s) would Penny's Parasols endure economic losses, but continue to produce in the short run? D, F, A, C, or E. Explain: 6.c) Which point in Figure 8.7 represents a break-even situation for a perfectly competitive firm? A, B, C, D, or E. Explain: 6.d) At which point in Figure 8.7 would a perfectly competitive firm earn the same profit, or suffer the same loss, by producing rather than by shutting down? A, B, C, D, or F. Explain: Choose and explain your answer above thoroughly--graphical, algebraically, numerically. Kindly see screenshot attached. Please explain with as much detail as possible, using the graph in your answer.
6.a) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of the point would Penny's Parasols be certain to close down? A, B, C, D, or E. Explain: b) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which point(s) would Penny's Parasols endure economic losses, but continue to produce in the short run? D, F, A, C, or E. Explain: 6.c) Which point in Figure 8.7 represents a break-even situation for a perfectly competitive firm? A, B, C, D, or E. Explain: 6.d) At which point in Figure 8.7 would a perfectly competitive firm earn the same profit, or suffer the same loss, by producing rather than by shutting down? A, B, C, D, or F. Explain: Choose and explain your answer above thoroughly--graphical, algebraically, numerically.
Some firms in the market are making profit, others are having losses. Draw and explain graphs showing MC, ATC, MR, AR, price and quantity of output to illustrate these situations. In the short run some of these firms may decide to shut down temporarily. In the long run some of these firms may exit the market, and new firms may enter. Draw and explain graphs to show these situations and short run and long run supply curves. iii. If firms can enter and exit the packaged milk market in the long run but not in the short run, show how a decrease in demand due to lower incomes of Pakistani consumers during COVID Pandemic affects price and profitability.