35. Consider a firm in a perfectly competitive market. The long run average total cost is described by the equation: ATC = Q2-160Q +6600. What is the market equilibrium price in the long run? [a] 200 [b] 150 [c] 100 [d] 80
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![35. Consider a firm in a perfectly competitive market. The long run average total cost is described by the
equation: ATC = Q²-160Q +6600. What is the market equilibrium price in the long run?
[a] 200
[b] 150
[c] 100
[d] 80
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- What two lines on a cost curve diagram intersect at the shutdown point?ATC MC 50 40 AVC 30 20 8 10 11 12 Quantity (per day) a. If the price in this market is $50, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output. Show your calculations b. If the price decreases to $25. c) Considering the short-run: would firm earn positive or negative profit in this new scenario? Would it continue operating or stop production? Explain your answer. d) Considering the long-run: would new firms enter to the market or would existing firms exit from it? What would happen to the market equilibrium? Explain your answer. Price and costs (dollars)Quantity Total cost, TC (1000 dollars per week) (tons of fish per week) 10 25 35 3 50 4 70 95 6 125 27) Abu Muhammad is a perfectly competitive fisherman in Muscat. His costs are shown in the table above. What is Abu Muhammad's shut-down price per kilogram of fish? A) $0.015 B) $0.0125 C) $0.0167 D) S0.0100
- 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 profitPrice 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; $6Figure: Cost Curves for Corn Producers Price, cost of bushel $30 26 MC 22 18 ATC AVC 14 10 1 3 4 7 Quantity of corn (bushels) Reference: Ref 12-3 (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce of corn and earn an ec omic equal to 2 bushels; profit; $0 2 bushels; loss; just more than $80 per bushel 3 bushels; profit; loss, -$15 4 bushels; profit; just less than $80 per bushel
- The graph below displays the short-run cost curves for Paola's Pears, a small farm competing in the perfectly competitive pear market. $7 MC ATC AVC 100 200 300 400 500 600 700 800 Pounds of Peara (a) If the market price for a pear is $5, how many pears would Paola produce to maximize her profit? [ Select] (b) At a $5 market price, what is the maximum profit (or minimal loss) Paola would earn? [Select] Price of Pears $6 $5 34 $3 $2 S >QUESTION 9 John lives in the small island nation of Vanuatu, and is a producer in the perfectly competitive market for galip nuts. A summary of some of his costs, which are given in the local currency (the "vatu"), is shown below. Quantity (kg of galip nuts) 0 30 60 90 120 150 Total Fixed Cost TFC (vatu) 5600 5600 5600 5600 5600 5600 Total Variable Cost TVC (vatu) 0 640 1520 2640 4800 9120 If John's profit-maximising quantity is 90kg of galip nuts, what is the marginal revenue per kilogram of galip nuts at this profit maximising quantity? Answer to the nearest whole number.20) - Google Chrome "mod/quiz/attempt.php?attempt%3=1579003&cmid%3812962&page%3D2 em (Academic 20- MC ATC AVC 16 4. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have th same cost curves and the price equals $16 per unit Select one: O a. over time, the price will fall as new firms enter the market. O b. over time, firms will leave this market. O c. the market is in its long-run equilibrium. O d. the firm is making zero economic profit. o search hp Price and cost (dollars per unit)
- Question 3 The following graph shows the price, marginal cost, and average cost curves for a firm. MC Price (RM) ATC 40 27 16 12 MR 250 500 570 Quantity (Units)Price and cost (dollars per student) $150 120 88 76 72 ATC 40 - MC MR 24,000 30,000 36,000 Quantity of students enroiled 15,000 Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. The faculty member who designed the course argues: "I think the course should be priced so that the maximum number of students enroll." Which price should this faculty member favor? O A. $0 В. $40 C. $88 D. $15012. A firm faces the following demand and total cost schedules, with all quantities listed on a per-month basis. Suppose that it is required to produce a whole number of items each month. Demand P ($) 20 18 15 12 8 1 2 3 4 5 Total Cost Q 1 2 3 4 5 TC ($) 5 15 30 50 75 a. How much does the firm produce, and at what price? How do you know? b. Suppose that the firm is subject to an excise tax of $5 per item sold. How much does it produce, and at what price? How do you know?