Economics 6. Short-run equilibriumConsider a perfectly competitive market for wheat in Dallas. There are 60 firms in the industry, each of which has the cost curves shown on thefollowing graph:Hint: Use the black point (plus symbol) to view the coordinates of the points on the AVC, AC, and MC curves. You will not be graded for anychanges made to this graph.COST (Cents per bushel)100908070605040302010005AVCAC10 15 20 25 30 35 40OUTPUT (Thousands of bushels)MC45502 The following graph shows the market demand for wheat.Use the orange points (square symbol) to plot the short-run industry supply curve for the wheat industry. Specifically, place an orange point at thelowest point of the supply curve and another orange point at the highest point of the supply curve. (Note: You can disregard the portion of the supplycurve that corresponds to prices where there is no output, since this is the industry supply curve. Plot your points in the order in which you would likethern connected. Line segments will connect the points automatically.) Then, place the black point (plus symbol) on the graph to indicate the short-runequilibrium price and quantity in this market. (Note: Dashed drop ines will automatically extend to both axes.)PRICE (Cents per bushe10090807060504030201000Demand300 600 900 1200 1500 1800 2100 2400 2700 3000QUANTITY (Thousands of bushels)At the current short-run market price, firms willmarket given the current market price.-0-Supply Curve+Equilibriumin the short run. In the long run,the

A competitive market is a market structure in which many firms compete to sell similar products or…

following graph: Hint: Use the black point (plus symbol) to view the coordinates of the points on the AVC, AC, and MC curves. You will not be graded for any changes made to this graph. COST (Cents per bushe 100 90 80 70 50 40 30 20 10 0 0 5 AVC 10 15 20 25 30 35 40 45 50 OUTPUT (Thousands of bushels) V

following graph: Hint: Use the black point (plus symbol) to view the coordinates of the points on the AVC, AC, and MC curves. You will not be graded for any changes made to this graph. COST (Cents per bushe 100 90 80 70 50 40 30 20 10 0 0 5 AVC 10 15 20 25 30 35 40 45 50 OUTPUT (Thousands of bushels) V

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 7SCQ: If new technology in a perfectly competitive market brings about a substantial reduction in costs of...

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A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
Economics Question
Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
only typed answer Assume a competitive firm faces a market price of $120, a cost curve of: C = 13q3 + 20q + 500, and a marginal cost of: MC = q2 +20. What is the firm's profit maximizing output level? ?? Units (round your answer to two decimal places) What is the firm's profit maximizing price? ??? (round to the nearest penny) What is the firm's profit? ??? (round to the nearest npenny) In the short-run, this firm should ?? produce or shut down??
3. You own WYNELL's Fashions, which sells prom dresses. Your firm has the following cost schedule: If vou produce this quantity The average total cost per dress is ... $100 40 $101 41 Your current output is 40 prom dresses, all of which have been sold. You receive a call from an eager potential customer, who offers to pay $150 if you will produce a prom dress for her Calculation space to show your work What would your profit or loss be on the 41st prom dress? (Show your work.)
The following graph shows the marginal cost curve for Oiram-46, a competitive firm producing magic hats. Suppose that currently, the prevailing market price is $1.50 per magic hat. On the following graph, use the blue points (circle symbol) to plot Oiram-46's price line. Then use the grey points (star symbol) to indicate the profit maximizing quantity of output produced by Oiram-46. TOTAL COST (Dollars) he 12 11 10 a 8 N 3 2 1 0 + Oiram-46 7 0 MC + H 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit-maximizing quantity is Demand Profit maximizing quantity ? magic hats, average revenue is $ and marginal revenue is