A firm was producing at profit maximizing output and decided to shut down. Which of the following is certainly true: A. PminATC D. Not enough information to answer this question
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A firm was producing at profit maximizing output and decided to shut down. Which of the following is certainly true:
A. P<minAVC
B. P<AFC
C. P>minATC
D. Not enough information to answer this question
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- Below are the short-run data of a representative firm in a perfectly competitive industry. The market price is $2.0, and you know that the firm is maximizing profits. What is the profit of the firm (rounded to one digit after the decimal point)? MC AVC ATC 1 1.0 1.0 1.50 2 1.2 1.1 1.35 1.4 1.2 1.37 4 1.6 1.3 1.43 5. 1.8 1.4 1.50 6 2.0 1.5 1,58 7 2.2 1.6 1.67 8. 2.4 1.7 1.76 9 2.6 1.8 1.86 10 2.8 1.9 1.95 Example on how to interpret the numbers: The MC of the second unit (Q=2) is 1.2 O $0.4 O $2.0 O $5.0 O $0.5 O $2.5 o oo o oBelow are the short-run data of a representative firm in a perfectly competitive industry. The market price is $2.0, and you know that the firm is maximizing profits. What is the profit of the firm (rounded to one digit after the decimal point)? MC AVC ATC 1 1.0 1.0 1.50 2 1.2 1.1 1.35 3 1.4 1.2 1.37 4 1.6 1.3 1.43 1.8 1.4 1.50 6 2.0 1.5 1.58 7 2.2 1.6 1.67 8 2.4 1.7 1.76 9 2.6 1.8 1.86 10 2.8 1.9 1.95 Example on how to interpret the numbers: The MC of the second unit (Q=2) is 1.2 O $0.4 O $2.0 O $5.0 O $0.5 O $2.5 o o o o oThe firm Tyrex, Inc. is facing losses, and needs to decide whether to shut down or keep producing. Determine which of the following scenarios should lead to the decisions to keep producing. Othe price or marginal revenue is lower than the minimum average variable cost of production Othe market price or marginal revnue is greater than the minimum average variable cost Othe market price is greater than the total fixed cost
- Macmillan Learning Consider the graphs of a constant cost industry and a perfectly competitive firm within it. Initially, the industry is in long-run equilibrium at point E, then demand shifts from Demand1 to Demand2. Answer the questions where P is the price, MR is the marginal revenue, AR is the average revenue, MC is the marginal cost, SRATC is the short-run average total cost, and LRAC is the long-run average total cost. Manipulate both of the graphs to reflect the adjustments that yield the long-run equilibrium. Price ($) 10 9 8 7 6 5 4 3 2 1 0 0 10 20 9 8 7 6 XX 5 3 MC 2 1 E 60 30 40 50 Quantity (in thousands) The demand shift results in 70 Supply a short-run economic loss for the firm. Demand1 Demand2 10 80 90 100 0 0 10 20 SRATC 30 40 50 60 Quantity 70 80 LRAC P=MR=A 90 100Adidas is one of the high-class sports shoe dealers in Melbourne with the following short run cost curves. Answer the question that follow according to the given figure: 1. Use 2 characteristics to explain the market structure for Adidas Sports Shoe Company. 2. Calculate this firm’s profit or loss for Adidas shoe company.The table below shows the cost information for a firm in a perfectly competitive industry. What would be the shut down price for this firm? Q FC VC TC MC AFC AVC ATC 0 275 0 275 1 275 8.1 283.1 8.1 275.00 8.10 283.10 2 275 11.8 286.8 3.7 137.50 5.90 143.40 3 275 16.7 291.7 4.9 91.67 5.57 97.23 4 275 23.4 298.4 6.7 68.75 5.85 74.60 5 275 32.5 307.5 9.1 55.00 6.50 61.50 6 275 44.6 319.6 12.1 45.83 7.43 53.27 7 275 60.3 335.3 15.7 39.29 8.61 47.90 8 275 80.2 355.2 19.9 34.38 10.03 44.40 9 275 104.9 379.9 24.7 30.56 11.66 42.21 10 275 135 410 30.1 27.50 13.50 41.00 11 275 171.1 446.1 36.1 25.00 15.55 40.55 12 275 213.8 488.8 42.7 22.92 17.82 40.73 13 275 263.7 538.7 49.9 21.15 20.28 41.44 14 275 321.4 596.4 57.7 19.64 22.96 42.60 15 275 387.5 662.5 66.1 18.33 25.83 44.17 16 275 462.6 737.6 75.1 17.19 28.91 46.10 17 275 547.3 822.3 84.7 16.18 32.19 48.37 18 275 642.2 917.2 94.9 15.28 35.68 50.96 19 275 747.9 1022.9 105.7 14.47 39.36 53.84…
- In the graph below, a firm will continue to operate in the short-term with losses in which region: Cost and revenues (dollars) Ps P P₁₂ P₂ P₁ 0 O Betweena & b O Between b & e ○ Between b & d O Between a &d Q2 Q3 Q4 Q5 Quantity supplied MC ATC MR AVC MR Average Fixed Costs MR MR₂ MR₁The following table presents the expected cost and revenue data for the Tucker Tomato Farm. The Tuckers produce tomatoes in a greenhouse and sell them wholesale in a price taker market. Complete the table by calculating the firm's marginal cost, average variable cost, average total cost, and profit schedules. Round your answers to the nearest whole dollar figure. For example, round $316.66 to $317, or $321.42 to $321. Output (tons) 0 1 2 3 4 5 6 7 00 8 9 10 Total Cost ($ Per Ton) $500 $600 $650 $750 $900 $1,100 $1,350 $1,750 $2,300 $3,000 $3,900 Marginal Cost $ $ $ $ $ $ $ Average Variable Cost $ |$ Average Total Cost $ $ $ $ $ $ $ $ Profit at $250 per ton -$500 $ $ ԱՊԱ Դ || $ $ Profit at $200 per ton -$500 $ $ $ $ $ $ $ Profit at $150 per ton -$500 $ $ $ $ $ $ $ $Consider the following short-run data for a perfect competitor. Use the data to answer the following questions. Justify your answers and calculations. Quantity Demanded Price TC TVC MC 0 22 150 - 1 20 2 15 3 22 4 34 5 54 6 78 d) What is the profit maximizing level of output for this producer? e) Calculate profits or losses at all levels of output.
- Babe’s Bats (BB) sells baseball bats for children around the world. The firm faces a demand curve of Q=10-0.4P, where Q is measured in thousands of bats and P is dollars per bat. BB has a marginal cost curve of MC=5Q. What is BB’s marginal revenue curve (equation)? What is BB’s profit-maximizing output? Show the profit-maximizing decision graphically.Firm Aleph operates in a perfectly competitive market in a constant-cost industry and is earning negative economic profit. Why might Firm Aleph continue to operate despite earning negative economic profit? Explain.Question The graph shows the cost curves of an individual firm in a perfectly (or purely) competitive industry. Use the points A, B, C, and D to trace out the firm's profit-maximing output decisions, according to the instructions. Place point A at the shutdown decision point. Place point B at the point where the firm is making a loss but will continue to operate in the short run. Place point C at the break-even point. Place point D at the point where the firm is making an economic profit. 21 В с D 20 Marginal cost 19 18 17 16 15 Average total cost 14 13 12 Average variable cost 11 10 9 7 5 4 2 1 9. 12 15 18 21 24 27 30 33 36 39 42 titu Price