Price and cost (dollars per burger) 5.50- 5.00- MC АТС 4.50- 4.00- 3.50- 3.00- MR 2.50- 250 50 100 150 200 300 Quantity (burgers per day) >>> Draw only the objects specified in the question. O Time Remaining: 01:16:09
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- The graph shows the demand curve and marginal revenue curve of Java Time, Inc., a producer of espresso machines in monopolistic competition. Draw the firm's marginal cost curve if Java Time produces 125 espresso machines a week. Label it Draw a point at the profit-maximizing quantity and price. if average total cost at the profit-maximizing quantity is $100 a machine, what is Java Time's economic profit? Java Time's economic pro t is $ Selected: none ON 804 604 0 Price and cost (dollars per machine) 25 50 75 100 125 150 1175 200 225 250 2 Quantity (espresso machines per week) >>> Draw only the objects specified in the question ate Clear ?The folowing diagram shows the curves for perceived demand, marginal revenue, and cost for Manuela's Pizza, which serves Mexican-style pizza. Manuela's is one of many other fast food restaurants in this town. MC Price and Cost ATC Demand Quantity of piezas Which statement describes the transibon to the long nun? Select the best answer. O More fast food restaurants will enter the market, and Manuela's demand curve will become more elastic. Manuela's will raise its prices since there is a large demand for its pizzas. O More fast food restaurants will enter the market, and Manuela's demand curve will become more inelastic. Manuela's will experience lower costs of production because it will expand its output.Please dont copy and paste the answers One of your former peers starts up a firm after graduating NYUAD. However, he didn’t take Markets so is unsure if he is behaving optimally. He’s asked you for help. His firm faces monopolistic competition, has diminishing returns to its inputs and uses a fixed input. He is producing at a quantity such that P=MC, and he makes a positive profit. a. Draw the Demand curve, MR, MC, and ATC reflecting this situation on a graph. Label the quantity, price and profit of the firm under his strategy. b. Is his strategy maximizing his profits? Explain how he would do so if not. Label the quantity, price and profit of the firm under the optimal strategy on your graph in part a. c. He asks you about what you predict might happen to his profits in the future. What do you expect will happen to profits in this industry as we go to long run and why? What is the key assumption of monopolistic competition that gives you your conclusion?
- Dana is a dot-com entrepreneur who has established a Web site at which people can design and buy awatch. Dana pays $200 a month for a Web server and Internet connection. The watches that customers design are made to order by another firm, and Dana pays this firm $60 a watch. Dana has no other costs. The table shows the demand schedule for Dana's watches. What is Dana's profit-maximizing output, price, and economic profit? Dana's profit-maximizing output is Dana's profit-maximizing price is $ Dana's economic profit is $ a month. watches a month. a watch. Price (dollars per watch) 100 80 60 40 20 0 Quantity (watches per month) 0 20 40 60 80 100e S NE ar 00 se kin. Blue Rose Inc. is the only flower grower to have cracked the secret of making a blue rose. The graph shows the demand for blue roses and the marginal cost of producing a blue rose. Draw the marginal revenue curve. Label it. Draw a point at the profit-maximizing price and quantity. Blue Rose is output, marginal 00000 because at its profit-maximizing marginal cost. A. inefficient; revenue is greater than B. efficient; revenue is equal to C. inefficient; benefit is greater than D. efficient; benefit is equal to E. inefficient; benefit is less than 70- 60- 50- 40- 30 20 Price and cost (dollars per bunch) 10- MC D Quantity (bunches per hour). >>> Draw only the objects specified in the question.Give two characteristics of the following:a. a perfectly competitive marketb. a monopolistic market
- The figure below shows the demand and costs facing Mike's Bikes, a producer of mountain bikes. What quantity does the firm produce and what is its price? Calculate the firm's economic profit or economic loss. Price and cost (dollars per bike) 400 350 300 250 200 150 100 50 MC ATC MR 100 200 Quantity (mountain bikes per week) Quantity produced is 100 mountain bikes per week, price of a mountain bike is $200 per bike, and economic loss is $10,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $250 per bike, and economic loss is $5,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $200 per bike, and economic profit is $5,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $250 per bike, and economic profit is $5,000.4. Francois owns a motel and monopolizes motel rooms along a remote stretch of south Texas highway. In March, Francois stayed open even though he earned negative economic profits. a. Draw a correctly and thoroughly labeled graph for Francois' motel during March and include each of the following: i. The profit-maximizing quantity and price, labeled QF and PF ii. The average total cost curve, labeled ATC iii. The rectangle indicating the negative economic profit, lightly shaded. b. What explains explains why Francois continued operating during March even though he was earning negative economic profits? c. In April, the fixed costs for Francois' motel decrease. Would Francois' profit-maximizing quantity increase, decrease, or stay the same in April? Explain.Maggie is one firm of many in the market for toothpaste, which is in long-run equilibrium. a. Draw a diagram showing Maggie’s demand curve, marginal-revenue curve, average total cost curve, and marginal-cost curve. Label Sparkle’s profit-maximizing output and price. b. What is Maggie’s profit? Explain. c. On your diagram, show the consumer surplus derived from the purchase of Maggie toothpaste. Also show the deadweight loss relative to the efficient level of output. d. If the government forced Maggie to produce the efficient level of output, what would happen to the firm? What would happen to Maggie’s customers?
- Figure 1. $ A B 0 E If you cannot see the image above, click here to download. F G O producing output G. O achieving positive economic profit in the short run. O achieving positive economic profit in the long run. O realizing 0 economic profit. MC Refer to Figure 1. This monopolistic competitive producer is: MR D ATC QuantityThe figure below shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What is the firm's economic profit per day? 20 16 MC ATC 12 MR 100 200 300 400 500 600 Quantity (calculators per day) 00 4. Price and costs (dollars per calculator)Use the graphs below to answer the question. MC () MC ATC ATC D. MR MR P. MC (d) MC ATC ATC D-MR D-MR A monopolistically competitive firm in long-run equilibrium is shown by panel and a perfectly competitive firm incurring an economic loss shown by panel O ka Ok a