The market for apple pies in the city of Ectenia is competitive and has the following demand schedule: Demand Schedule Price (Dollars) 10 11 12 Quantity Demanded (Pies) 1.200 1.100 1,000 900 800 700 600 500 400 300 200 100 0
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- Price and cost (dollars per student) $150 120 88 76 72 ATC 40 - MC MR 24,000 30,000 36,000 Quantity of students enroiled 15,000 Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor? O A. $0 В. $40 C. $88 D. $150operating in this market. PRICE (Dollars per oven) 100 90 80 70 60 50 40 30 20 10 0 0 5 MC ATC Z AVC 10 15 20 25 30 35 40 QUANTITY (Thousands of ovens) Price (Dollars per oven) 25.00 70.00 100.00 Quantity (Ovens) 45 For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.) 50,000 50 (? Total Revenue Fixed Cost Variable Cost (Dollars) (Dollars) (Dollars) 1,600,000 1,600,000 1,600,000 Profit (Dollars) If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $1,600,000 per day. In other words, if it shuts down, the firm would suffer losses of…What is the marginal benefit associated with producing sx units of the control variable, O (identify point Din the table)? 35 Total variable Benefits Marginal Marginal Marginal Net Benefit Control Total Net Costs Benefits Benefit Cost Sepped B(Q) C(Q) N(Q) MB(Q) MC(Q) MNB (Q) 1. 900 100 800 900 100 800 2 1,700 300 800 200 600 3 2,400 600 1,800 700 E 400 4 1,000 2,000 600 400 200 3,500 1,500 2,000 500 500 6. 3,900 2,100 1,800 D 600 -200 4,200 2,800 1,400 300 700 -400 4,400 B 200 800 -600 008 4,500 4,500 100 900 -800 10 4,500 5.500 -1,000 1,000 -1,000 Mutiple Choice 600 400 200 100
- The market for apple pies in the city of Ectenia is competitive and has the followingdemand schedule:Price Quantity Demanded$ 1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0 ch producer in the market has fixed costs of $9 and the following marginal cost:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. Compute each producer’s total cost and average total cost for 1 to 6 pies.b. The price of a pie is now $11. How many pies are sold? How many pies does eachproducer make? How many producers are there? How much profit does eachproducer earn?c. Is the situation described in part (b) a long-run equilibrium? Why or why not?d. Suppose that in the long run there is free entry and exit. How much profit does eachproducer earn in the long-run equilibrium? What is the market price? How many piesdoes each producer make? How many pies are sold in the market? How many pieproducers are operating?Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Q = 100 1 2 3 78°F Sunny 440 620 800 F2 Q = 200 F3 280 380 480 O Average Total Cost (Dollars per bike) Q = 300 Q = 400 240 240 320 F4 320 240 240 Suppose Ike's Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is $ F5 Q = 500 480 Suppose Ike's Bikes is expecting to produce 100 bikes per month for several years. In this case, in the long run, it would choose to produce bikes using On the following graph, plot the three SRATC curves for Ike's Bikes from the previous table. Specifically, use the…Pat's Pizza Kitchen has the following total cost schedule. Price (dollars per pizza) 16- Output (pizzas per hour) Total cost (dollars per hour) 14- 10 21 2 30 12- 3 41 54 10- 5 69 8- Use the data to draw Pat's supply curve. Pat's is a price taker. Draw a point to show the quantity of pizza supplied when the market price equals minimum average variable cost and Pat's continues to produce pizza. Draw a point to show the quantity of pizza supplied when the market price is $14 a pizza. Draw Pat's supply curve: Label the part at which Pat supplies zero pizza So and label the part at which Pat's supplies some pizza S,. 6- 4- 2- 0- Output (pizzas per hour)
- The graph shows the short-run cost curves of a toy producer. The market has 1,000 identical toy producers. The market price of a toy is $21. In the short run, the firm produces toys a week. 24- 21- 18- 15- 12- 9- 0 500 1000 1500 2000 MC ATC AVC 2500The SolarFarm powerplant has both fixed and variable costs. As the plant expands production, it first has constant returns to scale, and then diminishing returns to scale.(b) The government connects SolarFarm to a nearby town that is currently without electricity. Show in a new, large, graph how the market price and quantity of electricity sold change as a result.QUESTION 9 John lives in the small island nation of Vanuatu, and is a producer in the perfectly competitive market for galip nuts. A summary of some of his costs, which are given in the local currency (the "vatu"), is shown below. Quantity (kg of galip nuts) 0 30 60 90 120 150 Total Fixed Cost TFC (vatu) 5600 5600 5600 5600 5600 5600 Total Variable Cost TVC (vatu) 0 640 1520 2640 4800 9120 If John's profit-maximising quantity is 90kg of galip nuts, what is the marginal revenue per kilogram of galip nuts at this profit maximising quantity? Answer to the nearest whole number.
- O O Price (dollars) 160 120 8 40 0 2 4 Quantity According to the figure above, the total cost of producing 5 units is $24 $80 $8 $120 $40explain what is happening in this graphsV See Hint Suppose that Juan sells burritos. The total cost of production, based on the number of burritos produced, is shown in the following table. Number of burritos Total cost ($) 1. 8) 2. 10 3) 13 4. 18 25 34 7. 45 Suppose that the price is $6. Assuming profit maximization, how many burritos will Juan sell? asopdne