Question 5 Assume a perfectly competitive market. The market price of a product is R30 and the last unit of output that the firm produced cost the firm R25. What should the firm do in order to maximise profits? A shut down B contract output expand output D increase the price of the product 9 P

Question 5 Assume a perfectly competitive market. The market price of a product is R30 and the last unit of output that the firm produced cost the firm R25. What should the firm do in order to maximise profits? A shut down B contract output expand output D increase the price of the product 9 P

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

See similar textbooks

Related questions

Q: 6. Study Questions and Problems #6 Which of the following accurately explain why Karl Marx believed…

A: a. Incorrect: The principle is associated with communism, not capitalism. Marx believed that…

Q: Which of the following is correct? For every additional dollar in Lifetime_value, Incore is expected…

A: For every additional dollar in Lifetime value, Income is expected to increase by $0.42".This…

Q: Invention, innovation, and diffusion occur in response to incentives within the economy, meaning…

A: Technological advancement is a core component of economic growth and development within capitalist…

Q: Image uploaded answer is strictly not allowed

A: Step 1:The nominal exchange rate is the rate at which one currency can be exchanged for another…

Q: Using the below information, create a journal entry to move the costs of Jane, Jack, and Judy from…

A: The journal entry to move the costs of Jane, Jack, and Judy from Corporate Services to Corporate…

Q: 2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph…

A: QPTR 01000108080020601200255012503040120040208005000Based on the above table, we can draw the Total…

Q: Question If one worker makes 14 baskets, two workers make 34 baskets, three workers make 45 baskets,…

A: The question you've presented involves analyzing the marginal product of workers based on basket…

Q: QUESTION 1 Distribution of Income in Imagination Number of Families Income Range 23,500 less than…

A: Step 1:a)Poverty rate calculation:No. of families below $18000 = 23,500Total no of families =…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: The production function is Q=P(L,K)=17L0.1K0.9 The marginal product of labor is calculated…

Q: Currently, marginal tax rates are: greater than in the past. lower than in the past. equal to…

A: Given the circumstances, the data demonstrates that the federal income tax system in the United…

Q: Consider the following graphs for a representative firm and the overall market in a perfectly…

A: Short-Run Behavior: In a completely competitive market, businesses will initially operate at a level…

Q: Question 8 (1 point) Listen Junior's Sporting Goods sells camping equipment and outdoor gear. The…

A: Detailed explanation: (8). Producer surplus is the difference between the price at which producers…

Q: 7. Study Questions and Problems #7 Environmentalists in Tennessee brought suit against the Champion…

A: Environmentalists in Tennessee filed a lawsuit against Paper Company for polluting the Pigeon River…

Q: 1. Consider the classic competitive labor market. W S L DL Which of the following statements is most…

A: The scenario outlines a traditional competitive labor market in which the intersection of the demand…

Q: Image uploaded answer is strictly prohibited

A: Detailed explanation:Initial Setup From your scenario, we have two cereal companies faced with…

Q: please help me with 3 and 4. Thank you

A: Approach to solving the question: The question 3 can be answered using the knowledge in the…

Q: a student - run latte stand at the center of campus serves two types of customers students and…

A: FEEL FREE TO ASK FOR CLARIFICATIONS

Q: Power point ion Remember to give proper credit to your sources in a bibliography section. 1) Name…

A: This is an example of a well-organized PowerPoint presentation:Slide Title: The Role of Economists…

Q: Determine the reaction function for firm 1 in a Cournot duopoly with an inverse demand curve given…

A: In a Cournot duopoly, each firm determines its quantity produced taking the quantity produced by the…

Q: - 1 with Imagine that voters and politicians play the following game. A politician who is in office…

A: Detailed explanation:. Non-commitment Case In this scenario, voters cannot commit to the…

Q: If the monopolist is unregulated, what will be the profit? a. $30 b. $10 c. $15 d. $20

Q: 23. When an individual is considering borrowing to smooth consumption they will borrow just enough…

A: The correct answer is B. they can consume equal amounts now and later. Borrowing to Smooth…

Q: The great expert image uploaded answer is not allowed please

A: The above answer has in detail explanation

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: The profit-maximizing price is $3 per gallon, and the total output is 240 gallons. As part of their…

Q: A $100 million decrease in government expenditures (G) leads to an even larger decrease in aggregate…

A: The question is asking why a decrease in government expenditures would lead to a larger decrease in…

Q: Under average-cost pricing, the government will raise the price of output whenever a firm's costs…

A: Under an average-cost pricing policy, where the government adjusts the price of output in response…

Q: Scenario 38-3. Consider the following statistical model of workers salaries and years of job tenure,…

A: The image you sent contains a statistical model of workers' salaries and years of job tenure. The…

Q: when samsung reallocates its resources to produce 3.75 million tablets instead of 2 million tablets…

A: FEEL FREE TO ASK FOR CLARIFICATIONS

Q: PRICE (Rubles per won) 6. Changes in the foreign-exchange market The following questions focus on…

A: Central banks intervene in the foreign exchange market to protect the value of their national…

Q: 3. Suppose an economy had aggregate demand components with the following relationships: Consumption…

A: a. The computation of equilibrium income:Using the provided equations for consumption spending,…

Q: A successful alumnus gives CBU $5,000,000 to establish an endowed scholarship fund. If CBU can…

A: Step 1: Given Value for Calculation Present Value of Payment = pv = $5,000,000Interest Rate = r =…

Q: Suppose a bond pays annual interest of $50. Compute the interest rate per year that a bondholder can…

A: Detailed explanation:Given that the annual interest paid is $50, and the face values are $200, $500,…

Q: During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this…

A: The objective of the question is to identify the factor that could have caused the increase in real…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: Change in RevenuePrice is 75,000 : Quantity is 8 fire enginesPrice is 50,000 : Quantity is 9 fire…

Q: The following excerpt comes from page 96 of Brian Fagan's book The Little Ice Age: How Climate Made…

A: Approach to solving the question:Option B correctly integrates a direct quotation from the passage.…

Q: A model's parameters are defined as data that present information about multiple subjects at a given…

A: Approach to solving the question:The numerical values that govern the strength of the relationships…

Q: A statistical model in which the dependent variable is linearly related to one or more independent…

A: The statistical model you are describing, where the dependent variable is linearly related to one or…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: Detailed Explanation: Let's break it down:Graph Description:The graph represents annual income…

Q: E25.6 (LO 2), AN Writing The actual selling expenses incurred in March 2022 by Fallon Company are as…

A: Certainly! Let's break down the process of preparing a flexible budget performance report in a way…

Q: The following table shows the quantity of money supplied and the quantity of money demanded for…

Q: PROBLEM (3) (Regret Aversion, Gale's Roulette Wheels) Consider the regret utility u(x, y) = {1 if…

A: a) In order to determine the expected regret utilities, U(A/B), U(B/C), and U(C/A), we must first…

Q: Which of the following will cause the supply of loanable funds to curve shift leftward

A: The supply of loanable funds curve represents the relationship between the quantity of loanable…

Q: Explain the function and structure of the foreign exchange market

A: The foreign exchange market, often abbreviated as forex or FX, is the largest and most liquid…

Q: eco

A: Correct option: E. 100/6 Explanation: Question Analysis:Greta and Carlos have initial production…

Q: Logic Philosophy Please solve and show steps ¬(P ∨ Q) ⊢ ((Q ∨ S) -> S)

A: Here are the summarized steps on how I accomplished this task:1. Given Propositions: Identify the…

Q: The following table was generated from the sample data of 10 college students regarding the number…

A: Given:Dependent variable = student's GPAIndependent variables:x1 = number of parking ticketsx2 =…

Q: please answer in text form and in proper format answer with must explanation , calculation for each…

A: A monopoly practicing perfect price discrimination will extract all of the consumer surplus by…

Q: 6 Consider Bob's utility function. a. What is Bob's expected value of a gamble with a 50% chance of…

A: Let's first define "expected value." Expected value is the average of all payments one would receive…

Q: Isabella grows pumpkins. Her average variable cost (AVC), average total cost (ATC), and marginal…

A: Concept: A perfectly competitive firm will produce a good up to the point where its price matches…

Q: 1. Illustrate and describe the effects of expansionary monetary policy in a small open economy that…

A: Expansionary monetary policy involves increasing the money supply or decreasing interest rates to…

Question

Explain all options ....you will not solve all questions then I will give you down upvote......

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
Price and cost (dollars per mug) NA a ∞ ONA a 16 0 5 10 15 20 25 30 35 40 45 50 Quantity (mugs per day) $160; $280 The figure above shows Mollie's Mugs' costs producing mugs. The mug market is perfectly competitive. If the market price of a mug falls to $5 and Mollie's shuts down temporarily, its total variable cost is per day and it incurs an economic loss of per day. $8; $14 MC $0; $120 ATC AVC $0; $6
Sterling runs a donut shop which which is being operated in a perfectly competitive market where they earn positive economic profits. If the price of a donut is $3, Sterling makes 800 donuts a month, and their monthly average total cost is $2. What are Sterling's profits each month?
A market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the market quantity as the market leavesand then returns to long-run equilibrium
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 60
When will a firm enter a competitive market?
Using graph, explain when the firm in a competitive market is in equilibrium?
Costs MC (per pound) ATC AVC 3.00 2.25 1.50 150 180 225 Quantity (pounds) The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the following questions. Assume the market price is $3 per pound. a. What is the lowest price at which the apple producer will supply output in the short run? $ per pound. b. What is the firm's profit-maximizing (loss-minimizing) output? c. Is the firm earning a profit or a loss? loss profit
What is the equilibrium or profit-maximizing quantity of production for a perfectly competitive firm?
Could you explain what is the long run and short run of a firm in a market
A market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the profit-maximizing output quantityfor individual firms as the market leaves and thenreturns to long-run equilibrium.
Attempts: Average: 12 5. Profit maximization and shutting down in the short run Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. V ATC AVC PRICE (Dolars per watch) 100 5 MO 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY(Thousands of watches) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) Price Quantity (Dollars per watch) (Watches) 25.00 40.00 65.00 Total Revenue Fixed Cost Variable Cost (Dollars) (Dollars) (Dollars) 520,000 $20,000 520,000 (Dollars) If the firm shuts down,…