Mary’s meat Mart in the meat market can be characterized as a perfectly competitive firm. Quantity: 50 pounds of apples Price: $20 per pound ATC: $12 per pound AVC: $10 per pound  Create a graph of the perfectly competitive market in the short run
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- The table shows some cost data for Frank's Fortune Cookies which operates in a perfectly competitive market. At a market price of $42.83 a batch, what quantity does Frank's produce and what is the firm's economic profit in the short run? When the market price is $42.83 a batch, Frank produces batches of cookies. When Frank produces 6 batches of cookies, Frank's economic profit is $ Total Average Average product (batches fixed cost variable Average cost total cost Marginal cost per day) (dollars per batch) 1 77.00 45.00 122.00 31.00 2 38.50 38.00 76.50 23.01 3 25.67 33.00 58.67 20.99 4 19.25 30.00 49.25 26.00 5 15.40 29.20 44.60 33.98 6 12.83 30.00 42.83 51.02 7 11.00 33.00 44.00 77.04 8 9.63 38.50 48.13The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive market. Instructions: Use the nearest whole numbers on the graph when calculating numerical responses below. " A graph summarizes the demand and costs for a firm that operates in a perfectly competitive market.""The horizontal axis labeled quantity ranges from 0 to 11 in increments of 1. The vertical axis labeled dollar ranges from 0 to 48 in increments of 4. A horizontal line labeled D-superscript f = M R enters the quadrant through the point (0, 28). An upward-facing curve labeled M C begins at the point (0.5, 20) goes down to the right with decreasing steepness to a low point at (3.5, 8) then goes up to the right with increasing steepness to end at the point (8, 40). A second upward-facing curve labeled A V C begins at the point (0.5, 22) goes down to the right with decreasing steepness to a low point at (5, 12) then goes up to the right with increasing steepness to end at the…Basti’s Coffee operates in a competitive market. The short run price in the coffee market is equal toBasti’s Coffee average variable cost. Using two correctly labeled graphs show the coffee market side by side with Basti’s Coffee. Show the long run adjustments in eachof the following:price and quantity in the coffee market ii. price and quantity for Basti’s Coffee
- The packaged milk market in Pakistan is perfectly competitive. 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. 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.Ed produces table lamps in the perfectly competitive desk lamp market. Fill in the missing values in the following table Suppose the equilibrium price in the desk lamp market is $50. How many table lamps should Ed produce, and how much profit will he make? If next week the equilibrium price of desk lamps drops to $30, should Ed shut down? Explain. Output / Week Total Cost AFC AVC ATC MC 0 $100 1 $150 2 $175 3 $190 4 $210 5 $240 6 $280 7 $330 8 $390 9 $460 10 $540The accompanying graphs represent the market for soybeans, a perfectly (purely) competitive market, and Roy's Soys, an individual firm in the market for soybeans. The market and the firm are currently in long-run equilibrium at point A. Soybean market Roy's Soys 20 20 Price 2 B. Price 3 19 19 Marginal cost 18 Short-run supply 18 17 17 16 16 15 15 14 14 13 13 12 12 * 11 * 11 Average total cost 10 A 10 A Long-run supply Price 8. 8. 7 6. 6. 3 2 Demand 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (millions of bushels) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (hundreds of bushels) 1. Show what happens in the short run on both graphs when a new medical study shows soybeans to be highly carcinogenic. On the market graph, you will shift a curve or curves. On the firm's graph, use Price 2 to draw a new price line for the firm. On both graphs, indicate the new equilibrium point with point B. 2. Now, show the changes that get both graphs back to long-run…
- Derive the economic profit and loss of a firm in a perfectly competitive marketfrom the intersection of Total Cost (TC) and Total Revenue (TR) curves. write brieflyConsider the perfectly competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 100 80 42.5, 60 ATC. 20 AVC 10 MO-O 10 15 20 25 30 35 40 50 QUANTITY (Thousands of shirts) For each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indiſferent between producing zero shirts and the profit-maximizing quantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will make a profit, suffer a loss, or break even at each price. Price Quantity (Shirts) (Dollars per shirt) Produce or Shut Down? Profit or Loss? 10 20 32 40 50 60 On the following graph, use the orange points (square symbol) to plot points along the…Basti’s Coffee operates in a competitive market. The short run price in the coffee market is equal toBasti’s Coffee average variable cost. Using two correctly labeled graphs show the coffee market side by side with Basti’s Coffee. Show the long run adjustments in eachof the following:i. price and quantity in the coffee market ii. price and quantity for Basti’s Coffee
- Is the firm making an economic profit or loss? Will firms enter or exit this market? 3. Sketch on the graph and explain what happens to bring this market to long run equilibrium.The table below displays cost information for a firm operating in a perfectly competitive market. Assume all firms in this market have identical costs. a. Fill in the missing values corresponding to the empty cells. Quantity Total Cost Variable Cost Marginal Cost Average Variable Cost 1 $10 A $10 2 $38 $8 3 $44 $24 B 4 C $30 5 $38 $7.6 6 $68 D E 8 7 $60 8 $74 F A = $ B = $ C = $ D = $ E = $ F = $ b. Calculate the lowest price the firm would need to be able to sell their goods for in order to remain open in the short run. Firm shuts down in short run if Price is less than $ c. Calculate the lowest price the firm would need to be able to sell their goods for in order to remain open in the long run. Firm exits in long run if Price is less than $The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses. Draw a graph showing this situation for a firm in the short run.
