In a price-taker market, if a business produces efficiently (i.e., that is, where marginal revenues = marginal costs), the firm will be able to make at least a normal profit.  True of False.  Explain. All firms produce where MR=MC.  Price takers produce and price where P=ATC=MC=MR.  That is the "normal profit" level.  Profits above that level are considered "economic profits."  Review economic profits, normal profits, explicit costs, and implicit costs. Why is 'normal profit' considered to be a cost, in economics?

Q: Suppose that each firm in a competitive industry has the following costs: TC = 50+ q? Total Cost:…

A: Hi, thank you for the question. As per our Honor Code, we can attempt only the first three subparts…

Q: Assume that a firm in a competitive market faces the following cost information. If the market price…

A: PLEASE FIND THE ANSWER BELOW.

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: The difference between the money collected from the sale of a product and the costs of the inputs…

Q: If firms in the market are producing output but are currently making economic losses, P illustrates…

A: In economics, the marginal cost of production is the change in total production cost that comes from…

Q: Assume a competitive firm faces a market price of $100, a cost curve of: C= 0.25q? + 50q + 1,600 and…

A: Profit is the difference between the Total Revenue and the Total Cost of a firm. Per unit profit is…

Q: In a price-taker market, if a business produces efficiently (i.e., that is, where marginal revenues…

A: A perfectly competitive market is also known as a price taker market because perfect competitive…

Q: Suppose rocking-chair manufacturing is a perfectly competitive industry in which there are 1,000…

A: A perfectly competitive firm will produce chairs till the market price of chairs is greater than or…

Q: Suppose that there are 100 consumers in a perfectly competitive market and individual demand curves…

A: Perfectly competitive market refers to such a market where there are very large number of buyers and…

Q: The profit maximizing rule states that: Firms maximize profits by producing at the quantity where…

A: Answer: option b (Firms maximize profits by producing at the quantity where marginal revenue equals…

Q: Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q2…

A: The efficiency of scale is the point where the average cost is the minimum and it is equal to…

Q: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 +…

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

Q: In microeconomics, profit maximization means that: Firms should produce up to the last quantity…

A: Profit maximization refers to a process that which businesses go through to guarantee that they have…

Q: A competitive firm’s production function is given by y= f(x1,x2)= 4x11/2 + 10x21/2 a) The price of…

A: Answer: Given, Production function: y=fx1,x2=4x112+10x212 Price of factor 1(w1)= 1 Price of factor 2…

Q: Suppose, at a given point in time, Lynn's Licorice Loft sells licorice in a perfectly competitive…

A: Given; Average total cost of producing licorice= $1.20 Average variable cost= $1.00 Marginal cost=…

Q: Susan's profit is maximized when she produces marginal cost of the last teddy bear she produces is…

A: According to question# Susan is running a teddy business in the competetive market. In the…

Q: For this question, refer to the figure below, which shows the average total cost curve of a firm. As…

A: Answer - Given in the question- The total average cost of a firm .The ATC includes both variable…

Q: Describe how firms in Perfect Competition achieve both allocative and productive efficiency and thei…

A: There are two situations that arise in a perfectly competitive market, one is short-run equilibrium…

Q: In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that…

A: In the long run, new firms are entering in to the business if there is an economic profit. If the…

Q: Suppose LA.Banana employs workers to harvest bananas. Answer the following questions using the…

A: Quantity of labor Units of Output Marginal Product  VMPL (20* MP(L) Profit (20*Output - 800)…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: The equilibrium is established where the P=MC.

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: An economic profit is the contrast/difference between the revenue got from the offer of a result and…

Q: How would you explain allocative efficiency in a purely competitive market structure?   Group of…

A: By allocative efficiency, we mean that a particular production point is selected that is socially…

Q: Quantity Fixed Costs Variable Costs Total Cost Marginal Cost 10 200 50 250 *********** 20 200 100…

A: (A) If the equilibrium price is $20, find the profit-maximizing quantity.  The profit is maximum at…

Q: You are running a chocolate factory and need to decide on the price to sell the chocolate as well as…

A: Profit maximiser firms decide to charge price and output determination is set when marginal cost and…

Q: Suppose the market for apples is perfectly competitive. The short-run average total cost and…

A: (1) A perfectly competitive firm produces at P=MC in short run. The market price for apples is $26…

Q: In a perfectly competitive firm, firms always operate at the lowest per unit cost. true False   An…

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

Q: Suppose the doll company American Girl has an inverse demand curve of P = 150 – 0.25Q, where Q…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: Suppose that wood industry is a perfectly competitive industry that involves 240 identical firms.…

A: Firms in perfect competition are price takers meaning they sell output at the point where price…

Q: Consider total cost and total revenue, given in the following table: In the final column, enter…

A: A firm optimizes its production process at the level where marginal revenue and marginal costs are…

Q: Suppose that each firm in a competitive industry has the following as the Total cost: TC=50+ ½q2…

A: TC = 50 + 0.5q2 MC = q D: Q = 120 – P In competitive industry, firms will supply up to P = MC…

Q: Does the state of mr=mc in a perfect competitive market mean that the firm is supposed to sell out…

A: Here the point E is the state of equilibrium between supply and demand. suppose the producer…

Q: The long-run cost function of a firm producing widgets in a competitive market is given by c(y) =…

A: We are going to use concepts such as Price = Minimum Average total Cost.

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: Profit is determined by deducting the costs from the income. While working out the monetary profit,…

Q: Mr. Stonewall has to set up a firm that produces calculators competing with the likes of Casio and…

A: The functional relationship between the factors of production (inputs) and output is shown by the…

Q: 21. If the price in the market of the perfect competitive firm is P9 (use the same graph in…

A: In perfect competition, any profit-maximizing producer faces a market price equal to its marginal…

Q: Suppose that the monthly market demand schedule for Frisbees is:   Price $8 $7 $6 $5 $4 $3…

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

Q: n competitive markets, there are many small firms with each firm unable to influence the market…

A: P = $20 TC = 50 + 2Q + 3Q2 MC = 2 + 6 Q Competitive market equilibrium,  P = MC  20 = 2 + 6 Q Q…

Q: Suppose the price of bagels in Allentown is currently S0.90 per bagel. There are 10 low-cost…

A:

Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…

A: Accounting profit is the profit or the net income for the firm and the company after reducing all…

Q: our cost of production is given by

A: Price of a watch is ​$100 The marginal cost of​ production, MC(q)​, is 4​q Since this is a…

Q: Consider the competitive market for titanium. Assume that, regardless of how many firms are in the…

A: Answer: The supply curve of a perfectly competitive firm: the short-run supply curve of a perfectly…

Q: Sarge's Lawn Mowing Service is a small business in a perfectly competitive market. The prevailing…

A: In the mentioned question we have been asked about the perfectly competitive market and ask about…

Q: Suppose that you are one of rubber producers (sellers) in the perfectly competitive market in…

A: Worker cost is considered as variable cost because it changes as output output changes .  And we…

Q: A firm sells its product in a perfectly competitive market. Its total cost function is: TC = 900 -…

A: Hi! thankyou for the question but as per the guidelines, we answer only 3 parts at one time. Kindly…

Q: The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs…

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

Q: Consider a perfectly competitive market where variable input markets are also perfectly competitive…

A: Perfect competitive market is the market structure where number of buyers and sellers are selling…

Q: The following diagrams show the market for a good, as well as the cost curves for an individual firm…

A: Equilibrium is achieved at a point where demand curve intersects the supply curve. Breakeven occurs…

Q: The corresponding table shows the production and cost Quantity Total Total Number information for a…

A: The marginal product or marginal physical productivity of an input (factor of production) is the…

Q: Economists identify competitive markets as having these characteristics: • Identical products •…

A: A market is said to be competitive if the size of the firms is small as compared to the market size.…