A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 1. Draw the graph for the firm (include ATV, AVC, MC, and MR curves)
Q: For the cash flow diagram sbown below, the value of x that will make the future worth in year 8 equa...
A: Future value of given cash flow is $147,458 i=10% n=8 years
Q: How is Social Entrepreneurship a contributing factor to SDG? Cite examples please.
A: Sustainable development goals(SDG): There are 17 SDG goals that are focused on the global ground. Ma...
Q: A 15 percent decrease in the price of potato chips leads to a 30 percent increase in the quantity of...
A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in pric...
Q: Which of the following statements is true? O The Fed has chosen the interest rate as its target inst...
A: When Fed uses monetary policy target then both money supply and interest rate cannot be used togethe...
Q: consumption (units/year) 2500 2000 1500 1000 500 05 10 15 20 25 30 35 40 45 leisure (weeks/year) Ron...
A: Labour market consists demand and supply for a labour and interaction between them give rise to dete...
Q: If tax incidence is not affected by whether the government makes buyers or sellers pay the tax then ...
A: In a market, governement imposes tax on the exchange of goods and services between seller and buyer ...
Q: Plot the above AD-AS curves on the (Y, T) diagram. Describe the slopes of both the AD curve and the ...
A: Economists generally agree that the rate of money growth is one determinant of an economy's inflatio...
Q: What does the importance of the character of a nation’s growth process and about its institutional s...
A: Institutions have a significant impact on a country's economic growth and act at all levels of socie...
Q: The Finger Lakes region in New York State produces wine. The climate favors white wines, but reds ha...
A: Answer(h) Fixed Cost.
Q: Fiat money O A. has no intrinsic value. B. is different from paper money. OC. is not used as a unit ...
A: Answer:- (A) has no intrinsic value.
Q: Kids in the city were willing and able to buy 12 rolls of cotton candy when the price was $1.00 each...
A: The demand curve shows the various combinations of Pd and Qd of a good. The supply curve shows the c...
Q: MC Price AC £/unit AVC D2 D3 D1 D4 Quantity/ week Figure 10 Cost curves for a firm Figure 10 shows t...
A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity d...
Q: he following table shows the outputs and prices of three products A, B and C by a small economy in 2...
A: The given information: product A A B B C C year Price Quantity Price Quantity Price Quantity ...
Q: 4. Assume that Canada and Kenya are ti a. If the real interest rate in Canada decreas Canada and the...
A: The correct answer is given in the second step.
Q: What are some of the “controllable aspects” of a new market that the exporter may have control over?
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: 5. The market demand curve for Krispy Kreme donuts is Q, = 30 – 2p. Calculate the elasticity of dema...
A: At price =$5, Quantity demanded=QD=30-2*5=20 units Price elasticity of demand is defined as ε=dQDdPP...
Q: 1 Suppose an economy is currently in the steady state. Show in clear and well labelled labelled gra...
A: Steady-state is crucial to understanding the Solow model. In the steady state, the rate of investmen...
Q: QUESTION 5 1. The enumerated or delegated powers in the Constitution are those that... a. give power...
A: Answer:- (c) are expressly given to the national government.
Q: Describe three problems that make the consumer price index an imperfect measure of the cost of livin...
A: To find: Three problems that is reason for consumer price index an imperfect measure of cost of livi...
Q: In a simple model without government spending or taxation, if C = a +bY where C is consumer spending...
A: Consumption Function is the function relationship between the spending of the consumer and the facto...
Q: Jack has a utility function U(x1x2)=2(x1)(x2)^2 , and the price of x1 is 3$ and the price of x2 is...
A:
Q: Cost LRAC B A Quantity Figure 1 Long run average cost curve for a firm Figure 1 shows a long run ave...
A: In economics, when the firm expands or grows then there exists a change in its cost too. When the fi...
Q: The opportunity cost of a decision is the sum of all the foregone benefits that you'd receive from a...
A: Every choice needs a trade-off because resources are limited. Opportunity cost arises when there is ...
Q: Discuss a theory of economics that you identify with - how is this theory applied in real world scen...
A: Theory of opportunity cost: In economics, opportunity cost can be understood as the second best alte...
Q: 1. The analysis of economic forces that justify the existence of trade and its degree between two na...
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...
Q: What is demand-deficient unemployment? a) Unemployment due to asymmetric information on the side of...
A: A person is said to be unemployed if he/she is willing to work and looking for it but not able to fi...
Q: a) A person plans to deposit 100000 in the first year in his savings account. He reduces his deposit...
A: Disclaimer :- as you posted multiple questions we are supposed to solve the first one only as per gu...
Q: 100+3P and Qd = 400 - 2P where Qs is Quantity supplied and Qd is quantity demanded and P is p...
A: Supply and demand are equivalent in case of Equilibrium stage, and Qd=Qs. In given case:
Q: 1. Suppose an economy is currently in the steady state. Show in clear and well labelled labelled gra...
A: Steady-state is necessary to understand the Solow model. At the steady-state, the rate of investment...
Q: In the diagram below, a doubling of the price of X causes one to Y 100 20 40 45 50 100 increase the ...
A: When the price of x doubles, the budget constraint swivels around the x-axis. The Y coordinate howev...
Q: 2. Let your utility function be U (X, Y) = VX + VY. M This will give a demand function for X, X (Px,...
A: a. The demand function for Y is given by, Y(PX,PY,M)=M-PXXPY=M-PXMPX2PY+PXPY=M(PX2PY+PX)-PXMPY(PX2PY...
Q: If a firm's average variable cost curve is rising, its marginal cost curve must be
A: To find: What should be Marginal curve.
Q: There are three popular types of social welfare functions. Benthamite Social Welfare Function - W (u...
A: Social Welfare Functions: Benthamite Social Welfare Function: W(u1, u2,... uN) =∑i=1Nui Egalitarian...
Q: The Fed raises the interest rate when it O a. fears inflation. O b. wants to increase the quantity o...
A: We have show that If the federal Reserve ràises interest rates it does not want to increase the amou...
Q: Kabir’s Ceramics spent 3000 Taka on a new kiln last year, in the belief that it would cut energy usa...
A: Production means conversion of raw material into finished goods. It means the final goods are produc...
Q: Population of a city is 45000. The city grows continuously by 2.1% per year . If this trend continu...
A: Initial population (P 0 )=45000 Rate of growth (r)=2.1% per year (r)=0.021 ...
Q: 6. Imagine you have a quasi-linear utility function given be U=x-0.03r²+y. Please show your work on ...
A: Since we answer a maximum of 3 subparts, a-c will be answered here. Please re-upload the question me...
Q: Please explain the picture below.
A: Tariffs refer to the tax that the government or the governing institution of a country levies on the...
Q: Use the following supply and demand schedules for skate boards in table 18.1, to answer the question...
A: Solution(a):- When the price ceiling of $700 i.e. above the equilibrium price is implemented, it is ...
Q: Consider the p-beauty contest game. a group of people wrote down a number between 1 and 100. 2/3rd o...
A: Given information Number of players =n chooses between 0 to 100 number Winning is nearest to 2/3 of ...
Q: (Suggested time - 12 mins] MPB Q Q, Q, Q 5 Use the labelled points in this graph to identify the req...
A: Given Diagram
Q: Suppose we have the following information concerning the printed magazine and digital magazine subsc...
A:
Q: Which of the following events will cause the interest rate to increase? an open market sale of bonds...
A: Answer:- (C) all of these
Q: Khaled has developed a new technology device that is so exciting he is considering quitting his job ...
A: Total variable cost is the aggregate amount of all variable costs associated with the cost of goods ...
Q: Sam is considering investing in a bond with a face value of $20,000. The bond pays an interest of 4%...
A: Answer:- (B) $15,355.40
Q: LR-ATC Q2 Q3 Q4 Output In the above figure, between Q3 and Q4 units, the firm experiences O a. disec...
A: In a market, economies of scale refers to the economic concept to explain a situation when a firm ha...
Q: The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource...
A: Given: The cost of installation for Vendor A is = ₱380,000 Increased revenue per year is = ₱125,000 ...
Q: What is the economic problem? a. less profit Ob. liquidity Oc. Scarcity O d. unlimited resources
A: Economics aims to allocate the resources in such a manner so that the most efficient outcome is achi...
Q: Sophia’s preferences over donuts (D) and coffee (C) are represented by the utility function: u(D,C)=...
A: The utility function implies donuts and coffee are perfect complements and consumed in fixed proport...
Q: The Lerner index at the equilibrium of the linear Cournot symmetric model is equal а-с to L (n) = wh...
A: Equilibrium price refers to the price under which the supply is equal to the demand in a perfectly c...
A company in a
- Marginal cost curve intersects the
average variable cost curve at $150. - Marginal cost curve intersects the
average total cost curve at $200. - Marginal cost curve intersects the marginal revenue curve at $170.
- At Q = 100, ATC = $210 and AVC = $155
1. Draw the graph for the firm (include ATV, AVC, MC, and MR curves)
Step by step
Solved in 2 steps with 1 images
- TOTAL COST AND REVENUE (Dollars) -25 Suppose Lorenzo runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a price-taker market, and the market price is $10 per teddy bear. The following graph shows Lorenzo'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 teddy bears that Lorenzo produces, including zero teddy bears. 125 Total Cost 100 Total Revenue 75 -50 1 2 5 6 QUANTITY (Teddy bears) Profit Calculate Lorenzo's marginal revenue and marginal cost for the first seven teddy bears 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. ? COSTS AND REVENUE (Dollars per teddy bear) 2 3 5 QUANTITY (Teddy bears) Marginal Revenue Marginal Cost Lorenzo's profit is maximized when he produces teddy bears. When he does this, the marginal…A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 1. Draw the graph for the firm (include ATV, AVC, MC, and MR curves) 2. At this output of Q = 100, calculate: total revenue (TR), total cost (TC), variable cost (VC), and fixed cost (FC). Show your work (formulas and calculations) 3. Is this firm making a profit or a loss at Q = 100? What would you suggest this firm should do in the short run? ExplainThe graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (quantity-0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to drawit. To refer to the graphing tutorial for this question type, please click here Price and cost 18 15 14 13 12 10 19/21 SUBMIT ANSWER 13 OF 21 QUESTIONS C OMPLETED 28 MacBook Pro 금□ F7 F8 F9 F1o F2 F3 F5
- 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…Jeannette has a wheat farm, and the wheat market is perfectly competitive. The market price of a bushel of wheat is $18, and Jeannette’s machinery costs $140 per day and is the only fixed input. Her variable cost consists of the wages paid to the farm workers, and the fertilizer. The variable cost per day associated with each level of output is given by the table below. Calculate the total cost, the average variable cost, the average total cost, and the marginal cost for each quantity of output. What is the break-even price and quantity? What is the shut-down price and quantity? If the price at which Jeannette can sell wheat is $16/bu., will Jeannette earn a profit in the short run? In the short run, should she produce or shut down? If the price at which Jeannette can…Jeannette has a wheat farm, and the wheat market is perfectly competitive. The market price of a bushel of wheat is $18, and Jeannette’s machinery costs $140 per day and is the only fixed input. Her variable cost consists of the wages paid to the farm workers, and the fertilizer. The variable cost per day associated with each level of output is given by the table below. Calculate the total cost, the average variable cost, the average total cost, and the marginal cost for each quantity of output. What is the break-even price and quantity, shut-down price and quantity? If the price at which Jeannette can sell wheat is $16/bu., will Jeannette earn a profit in the short run? In the short run, should she produce or shut down? Q VC TC MC AVC ATC 0 0 10 160 20 220 30 300 40 420 50 580…
- Jeannette has a wheat farm, and the wheat market is perfectly competitive. The market price of a bushel of wheat is $18, and Jeannette’s machinery costs $140 per day and is the only fixed input. Her variable cost consists of the wages paid to the farm workers, and the fertilizer. The variable cost per day associated with each level of output is given by the table below. Calculate the total cost, the average variable cost, the average total cost, and the marginal cost for each quantity of output. Q VC TC MC AVC ATC 0 0 10 160 20 220 30 300 40 420 50 580 60 780 70 1,020The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than marginal cost. The price of fertilizer must be equal to average variable cost. The price of fertilizer must be less than average total cost. The following graphs show the cost curves faced a typical firm, the demand for fertilizer, and possible price and supply curves. (? (? Firm Market Demand ATC TAVO MC Quantity Quantity Price and Costs P. PriceThe accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely) competitive industry.
- Farmer Brown grows blueberries. The average total cost, average variable cost, and marginal cost of growing blueberries for an individual farmer are illustrated in the graph to the right. Farmer Brown will incur losses if the market price falls below $ per crate. (Enter a numeric response using an integer.) Furthermore, farmer Brown should shut down in the short run if the market price falls below $ per crate. C Price and cost (dollars per crate) 40- 36- 32- 28- 24- 20- 16- 12- 8- 4 0 MC AT AVI 90 10 20 30 40 50 60 70 80 Quantity of blueberries (crates per week) 1Related to the Economics in Practice on page 195: If firms have long-run average cost curves with a long, flat section, larger firms have a cost advantage over smaller firms. the optimal number of firms in the industry is one. their long run supply curves are downward sloping. it is impossible to predict the size of the firm.Profit maximization using total cost and total revenue curves Suppose Caroline runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Caroline's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven (inclusive) that Caroline produces. Caroline's profit is maximized when she produces______ shirts. When she does this, the marginal cost of the last shirt she produces is ______, which is (GREATER OR LESS) than the price Caroline receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is _____, which is (GREATER OR LESS) than the price Caroline receives for each shirt she sells. Therefore, Caroline's profit-maximizing quantity corresponds to the…