The following graph plots daily cost curves for a firm operating in the competitive market for pressure cookers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. ? PRICE (Dollars per pressure cooker) 100 90 80 70 60 50 40 30 20 10 0 0 MC ATC AVC 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pressure cookers per day) Profit or Loss In the short run, given a market price equal to $50 per pressure cooker, the firm should produce a daily quantity of pressure cookers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $50 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.

The following graph plots daily cost curves for a firm operating in the competitive market for pressure cookers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. ? PRICE (Dollars per pressure cooker) 100 90 80 70 60 50 40 30 20 10 0 0 MC ATC AVC 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pressure cookers per day) Profit or Loss In the short run, given a market price equal to $50 per pressure cooker, the firm should produce a daily quantity of pressure cookers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $50 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 8SCQ: Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are...

See similar textbooks

Similar questions

Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
4. Profit maximization in the cost-curve diagram Suppose that the market for black sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. PRICE (Dollars per sweater) 50 y ATC AVC 45 40 35 30 25 20 15 10 5 0 MC + 02 4 6 8 10 12 14 16 QUANTITY (Thousands of sweaters) 18 20 Profit or Loss ?
4. Profit maximization in the cost-curve diagram Suppose that the market for blenders is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 80 Profit or Loss 70 АТС 30 AVC 20 MC 10 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of blenders per day) blenders per day. In the short run, at a market price of $50 per blender, this firm will choose to produce PRICE (Dollars per blender)
Suppose Larry runs a small business that manufactures shirts. Assume that the market for shirts is a price-taker market, and the market price is $10 per shirt. The following graph shows Larry's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Larry produces, including zero shirts. 125 100 TOTAL COST AND REVENUE (Dollars) 25 ☐ Total Cost ☐ -50 0 1 2 3 4 5 6 7 8 QUANTITY (Shirts) Total Revenue A Profit (?) Calculate Larry's marginal revenue and marginal cost for the first seven shirts he produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. 25 2 COSTS AND REVENUE (Dollars per shirt) 0 1 2 3 5 6 7 8 QUANTITY (Shirts) Marginal Revenue Marginal Cost Larry's profit is maximized when he produces is shirts. When he does this, the marginal cost of the previous shirt he…
In the short run, given a market price equal to $15 per romper, the firm should produce a daily quantity of rompers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run of 5 thousand per day for the firm,
The following graph plots daily cost curves for a firm operating in the competitive market for jumpsuits. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per jumpsult) 50 45 40 35 30 25 20 15 10 5 10 W 0 Y ATC AVC 2 MC 4 8 QUANTITY (Thousands of jumpsuits per day) 6 10 + 14 16 18 12 20 Profit or Loss In the short run, given a market price equal to $15 per jumpsuit, the firm should produce a daily quantity of of On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a rt-run thousand per day for the firm. jumpsuits.
The graph below represents the extraction costs that Slippery Slope Oil Company faces during its first year. Assume the firm is operating on curve 'Total costo,' as shown by the graph. $200 Tools $180 Total cost $160 Total cost1 Total cost $140 $120 Price $100 $80 $60 $40 $20 250 500 750 1000 1250 1500 First-year quantity extracted (millions of barrels) Dollars
In the short run, at a market price of $20 per air freshener, this firm will choose to produce air fresheners per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be s thousand per day in the short run.
100 90 90 00 80 COSTS (Dollars) 70 70 00 60 50 40 30 20 10 ATC AVC MC 0 0 5 10 15 20 25 30 QUANTITY (Thousands of snapbacks) 35 35 40 45 50 For every price level given in the following table, use the graph to determine the profit-maximizing quantity of snapbacks for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. Price (Dollars per snapback) 10 20 32 40 50 60 Quantity (Snapbacks) Produce or Shut Down? Profit or Loss?
Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive market. The following table shows the company's production function: Output (Number of workers) (Shovels) Labor 1 100 195 275 4 340 380 Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. 40 Producion Function 340 100 130 40 LABOR (Number of workana) Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circle symbol). Note: Remember to plot each point halfway between two integers. For example, when the number of workers increases from 0 to 1, the MPL of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. (genoygl indino
Homework (Ch 14) PRICE (Dollars per instant pot) 100 90 80 70 60 50 40 30 20 10 0 0 MC 5 ATC AVC 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of instant pots per day) Profit or Loss In the short run, given a market price equal to $50 per instant pot, the firm should produce a daily quantity of The rectangular area represents a short-run (?) On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $50 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs loss. thousand per day for the firm. of $ instant pots.
The following graph plots daily cost curves for a firm operating in the competitive market for demin overalls. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per overalls) 50 45 40 35 15 10 5 0 0 2 MC ATC AVC 10 12 4 8 14 16 QUANTITY (Thousands of overallses per day) 18 20 In the short run, given a market price equal to $15 per overalls, the firm should produce a daily quantity of The rectangular area represents a short-run Profit or Loss On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. of $ overallses. thousand per day for the firm.