Use the graph above for question one assuming it represents the cost of a perfectly competitive firm where the market price is eight dollars A. calculate the profit maximizing point a production B. calculate the total revenue C. calculate the total cost D. calculate the total profit and E. will this firm shut down or continue in the short run explain how you know counted wrong. You may work in groups, but you must submit your own solution. Any submissionat are word-for-word identical will receive a score of 0. Use this sheet as a cover page or lose fiveints. No late homework will be accepted under any circumstances.MC8.ATCAVC2230 328aranh nhove for question 1 assuming it represents the costs of a perfectly compe5.4.

Business

Economics

Use the graph above for question one assuming it represents the cost of a perfectly competitive firm where the market price is eight dollars A. calculate the profit maximizing point a production B. calculate the total revenue C. calculate the total cost

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: a. The industry S P* = 5 b. A representative firm MC ATC P*= MR=$5 0 1,755,000 0 100 250 300 340 10.…

A: Purely competitive industry is also called perfectly competitive industry. A theoretical market…

Q: 8. 4. A firm in a perfectly competitive market will operate in the short run as long as its price…

A: Variable cost is a cost varying in response to a change in output level. These costs are a function…

Q: 1. A perfectly competitive firm realizes a total revenue of $2500 and a profit of $500. The firm…

A: Total revenue = Price * quantity 2500 = 12 * qty Qty = 208

Q: Use the values for a perfectly competitive firm below to answer the questions: Fixed Variable Cost…

A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…

Q: The packaged milk market in Pakistan is perfectly competitive. Some firms in the market are…

Q: 3. The following graph shows cost curves for a perfectly competitive firm. The market price of each…

A: The answer is given below

Q: QUESTION 7 • Explain the ettect of an increase in demand in a perfectly competitive market in the…

A: The perfectly competitive market is the market structure where a large number of firms compete in…

Q: Use the values for a perfectly competitive firm below to answer the questions: Price Quantity $10…

A: For a perfectly competitive firm, price is $10, Quantity is 2000, Total cost is $24,000, the Fixed…

Q: The diagram below, shows the cost structure for a firm in perfect competition. Assume that the…

A: The market price in a perfect competition market is 12. At this price, MC intersects ATC. It…

Q: a. Is the firm making an economic profit or loss? b. Will firms enter or exit this market? c. Sketch…

A: Firms in a perfectly competitive market face a perfectly elastic individual demand curve as they…

Q: 1. The following table has information on the revenues and costs for Tom's tennis ball manufacturing…

A: Given: It is given that T's tennis ball manufacturing firm is operating under perfect competition…

Q: What is the short run supply curve of a perfect competitive firm. Expalin using illustrations

Q: Use the following information about a perfectly competitive (PC) firm to determine which quantity…

A: There are large number of firms selling identical goods in perfectly competitive market. This makes…

Q: Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the…

A: Here, the given graph shows the marginal cost and average cost of producing doughnuts by the firm in…

Q: Pretzel stands in New York City are a perfectly competitive industry in long-runequilibrium. One…

A: Perfect Competition refers to the type of market where there are large numbers of buyers and sellers…

Q: If price in perfectly competitive market is $42. the firm has marginal cost curve equal to…

A: A perfectly competitive market is characterized by a large number of buyers and sellers. The market…

Q: MC ATC A VC 4 2.8 2 10 11 12 Quan hily (per day 8 The graph above khows the cost structure of a…

A: Since you posted many subparts, we will provide you the answer of first three subparts. If you want…

Q: Draw a diagram illustrating the case of a perfectly competitive business firm making a profit. label…

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…

Q: the perfectly competitive guidebook industry, the market price is $35. A firm is rrently producing…

A: In a perfectly competitive firm there are large number of firms producing identical products thus…

Q: a. What is the profit maximizing level of output for the firm? b. What is the economic profit earned…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 26. Use the chart below of a perfectly competitive market in the short run to answen the question…

A: We know that the profit maximization condition is marginal revenue is equal to marginal cost.

Q: Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above.…

A: A perfectly Competitive Firm maximizes profit by producing output at a level where P = MR = MC or MR…

Q: Draw a diagram illustrating the case of a perfectly competitive business firm making a profit. Label…

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…

Q: 3.8 On the following graph for a purely competitive industry, Scale 1 represents the short-run…

A: Short run Cost is the cost price that has immediate effects on the production processes, i.e., they…

Q: Explain the fact that the short-run supply curve for a price taking firm is that segment of its…

A: The short-run decisions on production for a perfectly competitive firm have direct implications on…

Q: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…

A: A market is a place where the buyers and sellers interact with each other and the exchange of goods…

Q: The table shows the total costs for a perfectly competitive firm, If the firm shuts down in the…

A: A firm if shutdown then produces zero units so the total cost of a shutdown firm is equal to the…

Q: 3. Apples are produced in a perfectly competitive industry. Assume that there are 100 identical…

A: Part (a) In case of perfect competition , the supply curve is given by marginal cost curve above…

Q: 50 MC ATC 40 30 MR 10 10 20 30 40 Quantity (per day) The figure above shows a perfectly competitive…

A: In the above, the profit-maximizing output for the perfectly competitive market is when MR=MC. This…

Q: Draw the MR, MC, AVC, ATC, Demand, supply, MC and MR for the following situations. For each of…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 4. The graph shows the perfect competition market. Price per unit MC ATC $3.00 MR 2.00 1.90 1.00 100…

A: Fixed cost is the cost that is same for all levels of production and marginal cost is the cost that…

Q: opose Gwen's Country Curtains is currently producing 1000 curtains per month at a price of $80. In…

A: In monopolistically competitive market, the sellers sell differentiated products which are close…

Q: 10. The diagram shows the price, marginal cost and average cost curves facing a perfectly…

A: The key characteristic of a perfect competition firm where the P=Demand = Marginal revenue or we can…

Q: Assume apples are sold in a perfectly competitive market and firms are making zero economic profit.…

A: Perfect competition is a type of market structure.

Q: Crabby Bob’s is a seafood restaurant in a beach resort in Delaware. Crabby Bob’s earns a profit each…

A: Here, when analyzing the given information, it can be said that Crabby Bob resturant is facing…

Q: Discuss the long-term effects in a perfectly competitive market if an existing firm is making…

A: In the long-run, all the firm in a perfectly competitive market earns positive economic profit…

Q: Graph the following for a perfectly competitive firm: A graph for long run – normal profit for the…

A: The perfect competitive market is the market with large number of buyers a seller with symmetric and…

Q: Graph the following for a perfectly competitive firm: A graph for short run economic profit for the…

A: In a perfect competitive market, there are numbers of buyers and sellers, selling similar products.…

Q: please answer parts e, f, and g

A: Answer- "Thank you for submitting the questions. But, we are authorized to solve only three sub…

Q: A requirement for a perfectly competitive market is that the sellers sell identical products…

A: The perfect competition is a market condition in which there are many producers and the production…

Q: Concept Question 3.21 Question Help The following table shows marginal and average total cost…

Q: Graph the following for a perfectly competitive firm: A graph for short run economic loss for the…

A: In perfect competitive market, there are number of buyers and sellers, selling similar products.…

Q: Use the values for a perfectly competitive firm below to answer the questions: Price Quantity…

A: a. the shutdown condition is where Price is less than Average variable cost AVC = VC / output =…

Q: Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following…

Question

Use the graph above for question one assuming it represents the cost of a perfectly competitive firm where the market price is eight dollars A. calculate the profit maximizing point a production B. calculate the total revenue C. calculate the total cost D. calculate the total profit and E. will this firm shut down or continue in the short run explain how you know

counted wrong. You may work in groups, but you must submit your own solution. Any submission
at are word-for-word identical will receive a score of 0. Use this sheet as a cover page or lose five
ints. No late homework will be accepted under any circumstances.
MC
8.
ATC
AVC
22
30 32
8
aranh nhove for question 1 assuming it represents the costs of a perfectly compe
5.
4.

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Please no written by hand and no emage Two classmates A and B are assigned a group project. Each student can choose to Shirk or Work. If one or more students chooses Work, the project is completed and provides each with credit valued at 4 payoff units each. The cost of completing the project is that 6 total units of effort (measured in payoff units) is divided equally among all players who choose to Work and this is subtracted from their payoff. If both Shirk, they do not have to expend any effort but the project is not completed, giving each a payoff of 0. The instructor can only tell whether the project is completed and cannot determine which students contributed to the project. A. Write down (draw) the normal form game, with payoff in the format of (player A payoff, player B payoff). Note that we assume students choose to Shirk or Work simultaneously. B. Does either player have a dominant strategy? C. Find the Nash equilibrium or equilibria. D. Explain ‘Prisoners’ dilemma’ using the…
you and a friend decide to run a three mile race. If you agree to run together, you keep up with himfor the first mile, but you overexert yourself and run the last two miles at slower paces on your own. Tomake up for lost time, your friend runs the last two miles at a faster pace. Your mile times are 6:30, 7:00,and 7:30. Your friend’s times are 6:30, 6:00, and 6:00. If you both agree to run on your own, you run aconstant pace of 7:05 while your friend runs at a constant pace of 6:05. If you want to run together butyour friend wants to run solo, he runs his constant pace of 6:05. You, on the other hand, want to showhim that you can run faster, but you end up overexerting yourself after the first mile. You run times of6:20, 7:05, and 7:30. If he wants to run together but you do not, you both run at your pace of 7:05. Thissituation can be turned into an economic game, with the payoffs the overall race times. You each wantto run the fastest time you possibly can.(a) Who are the players in…
Please give me answer in half hour otherwise leave this question
Consider the game below: Player C Strategy C1 50, 50 Strategy C2 Strategy R1 Strategy R2 Player R 800, 800 1000, 1000 100, 100 Playing the game sequentially would result in C getting: 100 800 It depends if R plays first or second 50 1,000
Each time a song is played on the radio, the record company and the songwriter are paid a royalty of $0.30.Of the total, 75% goes to the company and the rest to the writer. If on a network of 50 radio stations, a certainsong is played 4 times a day during the first week and then 20 times a day for the next three weeks, how muchdoes the network owe in royalties for the four weeks? How much do the record company and the songwriterreceive each
(a) Consider a ROCK PAPER SCISSOR game. Two players indicate either Rock, Paper or Scissor simultaneously. The winner is determined by: Rock crushes Scissors, Paper covers Rock, and Scissor cut Paper. In the case of a tie, there is no payoff. In the case of a win, the winner collects 5 dollars. Write the payoff matrix for this game. (b) Find the optimal row and column strategies and the value of the matrix game. 3 2 4 -2 1 -4 5
Dont copy new answers
Consider a small town with two competing restaurants: Doug’s Diner and Betty’s Bistro. There is 1000profit to be made in the market. Each period, the restaurants simultaneously decide whether to offer high orlow quality food. In order to offer high quality food, each restaurant must hire an expert chef, which incursan additional cost of 100. The restaurants split the profit equally if they offer the same quality of food. Ifone restaurant offers high quality food while the other offers low quality food, the high quality restauranttakes four fifths of the profit and the low quality restaurant takes one fifth of the profit.(a) Draw up the normal form game matrix, showing the players, strategies, and payoffs.(b) Determine the Nash equilibrium of this game.(c) Explain how the restaurant owners could both be better off than in the Nash equilibrium if they wereable to cooperate. Is the town as a whole better off or worse off when the firms cooperate? Why or whynot?
onsider the game described by the ff table. what is thE best response for the column player if he/she knows that the row player will make the Y move?
19 A decision tee is used when modeling More Chee games in which Sming matters any type of game a prisoners diemma simultaneous decisions < Prey 19 of 30 < Konuşan
Y's possible prices $40 SES $40 $60 X's possible prices $69 $57 $50 a) Outcome under credible threat in one time game? b) Outcome when repeated game? B $35 $55 D $58 $59 $55
Consider the following extensive-form game. U D A B A B -6,6 X Y X Y P 3,8 -8, 1 1,2 -2, 1 5,5 -0,0 The dashed lines represent information sets. (a) Represent this game in normal-form. (b) Derive the Nash equilibria in pure strategies. (c) Describe the (proper) subgames of this game. (d) Derive the subgame perfect Nash equilibria in pure strategies.