OLY an NO ATC AVC Per the above graph of cost curves, assume that the horizontal lines at P1, P2, P3 and P4 represent Demand MR Price which means the graph is of a firm producing products in a perfectly competitive market structure. If so, and the product price is P3, the firm should exit the industry the firm will earn an economic profit. the firm is at breakeven earning normal profit which is an economic cost, but not earning any economic profit. new firms will enter the industry.
Q: To get the maximum benefit of diversification, an investor should OA. include in his portfolio…
A: A crucial element of any investment strategy that seeks to minimize risk and increase returns is…
Q: . At the end of their useful lives alternatives A and C will be replaced with identical replacements…
A: The internal rate of return (IRR) is a financial metric used to evaluate the profitability and…
Q: The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR.…
A: Aggregate expenditure refers to the total expenditure made on commodities and services made by all…
Q: How can monetary policy, fiscal policy and financial sector regulation help in the fight against…
A: Central bank refers to institutions of an economy that regulates the money supply using its monetary…
Q: is income per day). Find and graph the new budget constraint (income per day = M) for w= $8/hr.…
A: Due to the fact that a larger income enables the consumer to buy more of both products, the new…
Q: Summer1 Digital (Summer1) is a multinational corporation that produces and distributes…
A: The economy of country M has been expanding steadily throughout the past two decades as a result of…
Q: Two travelers own an identical suitcase that contains identical antiques. The airline is liable for…
A: The Nash equilibrium principle was first developed in the 1950s by John Forbes Nash Jr., a…
Q: Consider a change in price that is accompanied by a change in wealth that returns the consumer to…
A: Consumer behavior and decision-making require analyzing the utility function, compensatory…
Q: How can monetary policy, fiscal policy and financial sector regulation help in the fight against…
A: Central bank refers to institutions of an economy that regulates the money supply using its monetary…
Q: Is Canadian economy doing well and is GDP growing? Explain it in economic terms as the inverse…
A: The increase in the value of a country's Gross Domestic Product (GDP) over a specific period,…
Q: Are fixed costs also sunk costs? Explain.
A:
Q: Which of the following options is correct as per the given figure? a. Both countries face income…
A: Lorenz Curve graphically shows the cumulative distribution of income among the population of a…
Q: Plot the per capita GDP for 5 countries of your choosing for the longest duration possible. Be sure…
A: The world's economy gets impacted by global occurrences, economic interactions, and advances in…
Q: Inflation, B Unemployment At point A, what does the economy represents: a) There is a decline in…
A: The Phillips curve suggests that there is a trade-off between inflation and unemployment in the…
Q: You have been appointed the new manager for Ghana Airways Company Limited, an international airline…
A: Total cost is given asProfit maximization in monopoly is given asMR=MCWhere MR is marginal revenue…
Q: 1) Application of Minimum Value Functions. Derive Suppose the following Cobb-Douglas production…
A: The Cobb-Douglas production function is a mathematical equation that represents the relationship…
Q: WAGE (Dollars per hour) 16 14 12 10 2 0 Supply Demand 200 400 600 800 1000 1200 1400 1600 LABOR…
A: In the labor market, surplus and shortage refer to imbalances between the supply of labor (workers)…
Q: With the imposition of the above price control, by how much the producer surplus change?
A: Producer surplus is defined as the area above the supply curve and below the price level .Now when…
Q: If the government sets a price ceiling of $4, there would be an: 18 16 14 12 10 8 6 4 2 X D₁ 2 4 6 8…
A: Price ceiling refers to a situation of fixing the maximum price at a level lower than equilibrium…
Q: С О A B C K О To maximize profits, the firm whose data is shown in the graph should produce the…
A: Profit maximizing level of output is given at the point where marginal revenue (MR) equals marginal…
Q: ACME Anvil Corporation has done extensive analysis of their current process and found the following…
A: Internal failure costs are expenses incurred by a company as a result of defects, errors, or…
Q: 2. The real wage is the return to labor measured in: O a. dollars. b. units of output. O c. units of…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Draw a correctly labelled demand and supply graph for the market for toilet paper in the US with an…
A: The demand curve is a graphical representation that illustrates the relationship between the price…
Q: Question 32 Not yet answered Points out of Flag question The Fisher effect states that an increase…
A: ***Since you have posted two independent questions, according to our guidelines, only the first…
Q: Show that if Pete increases production by 100 utensils he will earn more profit, assuming that Pat…
A: Nash Equilibrium is a concept in game theory where the optimal outcome of a game is achieved when…
Q: How does fiscal policy determine the rules of the market? Who controls the rules of the market?
A: Fiscal coverage refers to the government's use of taxation and expenditure measures to influence the…
Q: What do you mean by 'production function"?
A: A production function is an economic concept that represents the relationship between inputs and…
Q: 1. A bakery is considering investing in a new oven. The oven has a cost of $14,000 and is expected…
A: Given that;Initial cost of the oven: $14,000Additional profits generated per year: $2,000Lifespan of…
Q: Apricot Computers is considering replacing its material handling system and either purchasing or…
A: Old Machine - AOC = 31000 , Salvage Value = 5300 New System -Initial Cost = 259000 , Salvage Value…
Q: 9. Consider the two-dimensional graph below and complete the following sentence: The market depicted…
A: The terms "Marshallian stable" and "Walrasian unstable" are used in the context of general…
Q: Consider the point C in the PPF curve drawn below. 30 28 26 24 22 20 18 16 14 12 10 8 6 4 ONA 2 10…
A: PPF is the production possibilities frontier that shows maximum combinations of two goods that can…
Q: 3 The second welfare theorem Two agents meet to trade two goods. Agent 1 has utility function u¹(x¹)…
A: Agent 1 -Utility function : ln x1 + ln x2Endowment : (3 ,4 )Budget constraint : 3p1 + 4p2 = p1x1 +…
Q: Please solve the remaining parts from d to f. Thank you.
A: Certainly! Let's go through the remaining parts step by step.
Q: figure to the right shows the market for Kuwait's currency, the dinar. Suppose that the following…
A: Depreciation in currency can be described as the decline in the value of a currency with respect to…
Q: Question: Write 5 Usual Objectives In Conducting Engineering Economic Analysis.
A: In conducting engineering economic analysis, there are 5 commonly pursued objectives:-
Q: If federal deposit insurance is provided to banks at no cost to them, who pays when an insured…
A: Federal deposit insurance is a government-backed program in the United States that provides…
Q: In the below diagram, state which two arrows represents the following transaction: "Person H hires a…
A: Here the blue and red arrows represent the flow of goods and services from household to firm and…
Q: Which of the following is the definition of foregin exchange risk? OA. A financial strategy that…
A: The value of one currency in another currency's terms is known as the nominal exchange rate. It also…
Q: In a market socialist economy a. Resources are allocated by the market b. Property is owned by the…
A: An economic framework is an assembly of organizations, groups, and processes that influence how…
Q: For the healthcare organization and medical insurance, Discuss at least three positive and negative…
A: 1. Expanding Access to Healthcare:The Affordable Care Act (ACA) has significantly expanded access to…
Q: In 1972 the U.S. Food and Drug Administration (FDA) began requiring all aspirin manufacturers to…
A: Misperception: Misperception refers to a misunderstanding or incorrect perception of a situation or…
Q: Identify the short run supply curve. Figure 12-9 Price and cost P₁ P₂ P₂ Q₁ Q₂ Q3 Q MC ATC AVC Q5 Q…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Joey is one of several winners who shared a lottery ticket. There are three plans offered to receive…
A: Time value of money: It is a concept in which the present value of money is considered to be best…
Q: Which of the following has the effect of an increase in government spending in the case of an open…
A: A current account deficit can be described as a major component of an economy's balance of payments…
Q: Suppose that at a price of $2,300 apples are sold per day. The elasticity of supply is 1 when the…
A: A concept in economics that measures the sensitivity of the quantity(Q) supplied of a good or…
Q: Since under the assumptions of the CAPM model, building a well-diversified portfolio is neither more…
A: CAPM Model:The CAPM model or the Capital Asset Pricing Model, is a financial model used to determine…
Q: Problem 1: Non-differentiable utility with multiple constraints There are two goods, coffee and…
A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…
Q: A monopoly relies heavily on large barriers to entry and exit. Which of the following are effective…
A: Intellectual property rights (IPR) refer to legal rights that are granted to individuals or entities…
Q: Suppose the U.S. economy is Keynesian (i.e., sticky prices in the short run) and can be described by…
A: The equations you provided describe the following economic relationships:Cd is the demand for…
Q: Which of the following statement is correct? Question 4Select one: a. Princeton professor Markus…
A: Banks remain key financial service providers in the twenty-first century, fostering economic growth,…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- 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.Consider the competitive market for sports jackets. 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. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60MC we e-MR-D 01214 6 telof wh Piease refer to the above graph of a perfectly competitive firm's cost and revenue curves the price of thin product is $7, what is the proft maximizing level of output? unts the price of this product is $7, what is the frm's total revenue when it maximires proft? S It the price of this product is $7, what is the fiem's total cost when it maximizes profir?S It the price of this product is $7, what is the fims total variable cost when it maximizes proft?S What is the fiem's tatal fed oost? the price of this product is $7, what is the fm's proft or loss when t maximizes pro? of loss, write answer as a regative number wth minius sgn)5
- essay (on this firm) argues that, the firm would be better off by closing down. Do you a unit of output of this company is Birr L3. A student working on his senior A company in a perfectly competitive market has a total cost function given as: 6. TC 50+40+ The price agree? Explain By using the knowledge of relationshins among the various cost concepts, fill the bia cells of the following table. Quantity TFC TVC TC MC AFC AVC ATC 50 50 64 98 162 26 20 finms (Fi and Fa) producing identical product competing for like to dominate the other, if possible. They each defends100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or 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 hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)Using the graph below, calculate the firm's profits at the profit maximizing output Price 408 384 360 336 312 288 264 240 216 192 168 144 120 96 72 48 24 0 0 56 112 168 224 280 336 392 448 504 560 616 672 728 784 840 896 Quantity -PMRMC-AC
- onsider the table below and assume the market price is $35 per unit. Totalproduct Totalfixed cost TotalVariablecost 0 150 0 1 150 50 2 150 75 3 150 112.4 4 150 150 5 150 200 6 150 270 7 150 360 8 150 475 9 150 620 10 150 800 Now assume there are 600 identical firms in this industry, that is, there are 600 firms, each of which has the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows: Price Quantitydemanded $20 6,800 30 5,975 45 5,500 60 5,125 75 4,500 95 4,200 120 3,600 150 2,400 In equilibrium each firm will realize: Multiple Choice an economic profit of $155. a loss of $45. an economic profit of $35. a loss of $135.Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?the table below shows the output cost and revenue situation of a firm. Study the table and asnwer the questions that fllows Q TVC TC MC P TR MR 0 0 150 0 200 0 - 1 110 C 110 175 175 175 2 170 320 G 150 I L 3 A D 46 135 405 105 4 250 E 34 120 J M 5 B 445 H 105 525 45 360 F 65 90 K N (a) what is the fixed cost of the firm? Explain your answer (b) determine the values from A-M by showing all workings employed (c) At what quantity and price is the firm in equilibrium position and in what market is the firm oeperating? explain your answer
- What is the difforence between acounting proft and economic prof? OA Economic profit subtracts both expict and implicit oosts trom total revenue, while accourting proft only sutiracts explicit oosts. OR Accourting profe only nuttracta imglicit coeta from total revenue, whie ecoromic proft only suberacte explicit coste OG Economic proft oriy subtracts implict costs from total revenue, while accounting profit only subtracts enplicit costs OD. Accourting proft suberacts boh explict and impict costs from total ravanue, while economic proft only sutracts explicit oosts.A firm on competitive market has the data about cost as below Q,0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 TC 100160208254290320340355370390430475525580640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. c. Determine the supply curve of this firm 3. A firm on competitive market has the data about cost as below Q 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TC 100 160 208 254 290 320 340 355 370 390 430 475 525 580 640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. C. Determine the supply curve of this firmE E on The diagram illustrates the demand curve, isoprofit curves and the marginal cost curve of MQ2020, a luxury car manufactured by MQ Motors. Assume that MQ Motors currently chooses to operate at Point E. Which statement correctly describes the market of MQ2020? 10,000 Price, marginal cost (5) Pt-$5,440 Po B 0 190 20 Q=32 D Qo Quantity of cars, Q Marginal cost Isoprofit curve $150,000 Isoprofit curve 563,360 Demand curve 120 Select one: O a. Total surplus is not being maximised. Ob. Deadweight loss is the loss incurred by MQ Motors for not selling more cars. O All possible gains from trade are being achieved as MQ Motors operates at its profit-maximising output and price. Od. The amount of consumer surplus is the area ADP. O e. Pareto efficient allocation is currently being achieved.