Question 2$150$145$140MC$135$130$125$120ATC$115$110$105$100$95$90$85$80AVC$75$70$65$60$55$50$45$40$35$30$2501 23567891011Quantity ProducedThe graph above shows the short-run cost functions for a perfectly competitive profitmaximizing firm. If the market price of the product equals $100 per unit, the firm willproducedollars.units and will make an economic profit of

Detailed Explanation: Quantity Produced: To find the quantity produced where the market price ($100)…

Answered: Question 2 $150 $145 $140 MC $135 $130…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 1CQQ

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Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
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.
$150 $145 $140 MC $135 $130 $125 $120 $115 ATC $110 $105 $100 $95 $90 $85 $80 AVC $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 0 1 2 3 5 6 Quantity Produced 7 8 9 10 11 The graph above shows the cost functions for a perfectly competitive profit maximizing firm. If the market price of the product is $70 per unit, the firm will produce units, will cover make an economic profit of dollars. dollars of its fixed cost, and will
ntQu102spring22 (1) - Protected View • Saved to this PC - O Search (Alt+Q) Faridatu Pafadnam References Mailings Review View Help t Defender Advanced Threat Protection and it hasn't detected any threats. If you need to edit this file, click enable editing, Enable Editing 3) Consider the following short-run cost curves for a profit-maximizing firm in a perfectly competitive industry. MC SRATC 4 SRAVC 1.5 1 100 200 300 400 Quantity FIGURE 1 a) Refer to Figure 1. If the current market price is $6, what is the profit-maximizing output for this firm? b) Refer to Figure 1. If the price is $6 and the firm is producing at its profit-maximizing output, then what are total costs for the firm? c) Refer to Figure 1. If the market price is $1, the firm will produce short run. units of output in the d) Refer to Figure 1. If the market price is $2, what the firm will do? Price $
$30 $28 $26 $24 $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 5 MC АТС AVC MR = P 10 15 20 25 30 35 40 45 50 55 Output (Q) The firm shown in the diagram above will be making a of in the short run. loss; $150 profit; $100 profit; $200 loss; $140
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.
a. ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. b. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. Total revenue $ 500,000 Wages and salaries $ 40,0000 Forgone salary $ 80,000 Interest paid $ 10,000 Forgone rent $ 10,000 Raw materials $ 50,000 Other payments $ 20,000 Forgone interest $7000
Table A Unit Marginal Cost Marginal Revenue Quantity 12 $5.00 $9.00 13 $6.00 $9.00 14 $7.00 $9.00 15 $8.00 $9.00 16 $9.00 $9.00 17 $10.00 $9.00 This table describes the relationship between output, marginal revenue, and marginal cost. If the firm is currently producing 14 units, what would you advise them to do? decrease quantity to 13 ) increase quantity to 15 remain at 14 units increase quantity to 16 units
Find the value of Z. Quantity Total Cost Fixed Cost Variable Cost Marginal Cost $5,000 $4,000 $1,000 $1,000| 10 ********** $200.00 $220.00 25 8000 40 11300 55 15050 70 19700 $310.00 O $240 O $250 O $274 O $1000
What is the marginal cost of the eighth unit based on the table? 0 1 2 3 4 5 6 100 110 115 125 140 160 190 Output Total cost marginal cost: $ Which statement is true based on the data presented in the table. 7 8 9 10 230 280 340 420 The marginal cost for this firm are constant as output increases. The marginal costs for this firm decrease at first but increase beyond a certain level of output. O The marginal cost for this firm only decrease as output increases.
Burger Prince is considering opening a new restaurant in Colton, Loma Linda, or Upland. The following fixed and variable cost data have been assembled. Variable Costs per customer Fixed Cost per year Labor Location Colton $200,000 $0.40 Loma Linda $180,000 $0.75 Upland $170,000 $1.00 Over what range of annual demand is each facility going to have a competitive advantage? 3. Material $0.20 $0.25 $1.00 Overhead $0.40 $0.75 $1.00
Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are: Sold per Day 0 100 200 300 400 500 600 700 Price per Meal $3.50 $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 O A. 700 meals at $1.75 per meal. OB. 300 meals at $2.75 per meal. OC. 600 meals at $2.00 per meal. OD. 400 meals at $2.50 per meal. ✔ OE. 500 meals at $2.25 per meal. Total Fixed Cost $150 $150 $150 $150 $150 $150 $150 $150 ... Total Variable Cost $300 $500 $650 $750 $840 $905 $995 Total Revenue 0 $325 $600 $825 $1,000 $1,125 $1,200 $1,225

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