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What does (Box A + Box B) represent for this firm?
B Marginal Cost
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- The following table displays...The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per unit) 100 TOTAL REVENUE (Dollars) 90 80 20 10 0 1250 1125 1000 875 750 625 500 On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, or 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. 375 250 125 + 0 0 0 Demand 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) + 5 20 10 15 25 30 35 QUANTITY (Number of units) 40 Graph Input Tool Market for Goods 45 50 Quantity Demanded (Units)…On the occasion of summer vacation, a student plans to open a milk tea shop. Before deciding to open a store, she wants to find out how profits fluctuate with fluctuations in selling prices and costs per unit of product. The selling price per cup of milk tea can range from VND 20,000.00 to VND 30,000.00 (the level of change is VND 1,000.00 each time) and the cost to make a cup of milk tea can range from VND 13,000.00 to VND 17,000.00 (the level of change is VND 500 each time). Knowing that the initial fixed cost is VND 24,000,000.00 and the number of cups of milk tea sold (Demand) depends on the selling price according to the formula: Demand = 24000 - 0.5 * Unit Price Use the two-dimensional sensitivity analysis to answer the following questions: a) What is the profit if the selling price is 23,000.00 VND and the cost per unit is 15,000.00 VND? b) How will profit change with each increase in cost of a product unit by VND 500.00 with a constant selling price of VND 25,000.00? c) What is…
- Consider the graph of a firm in a perfectly competitive market to answer the question below: MC ATC 7 3 MR 10 What is the value of this firm's revenue if it operates where MR=MC? Enter your answer as a number below. Do not include a "$" sign.You witnessed new firms entering a competitive market. What can you infer for the existing firms in that market?Suppose that the market for microwave ovens 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.
- to maximize profits the firm whose data is shown in the graph should produce the quantityAccording to the accompanying table, what quantity of output should the firm produce? Explain your answer.For second graph; suppose there are 10 firms in this industry, each of which has the cost curves previously shown.
- Suppose that the market for dress shirts is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. (?) 50 45 Profit or Loss 40 35 30 АТС 25 20 15 10 AVC MC 4 8 12 16 20 24 28 32 36 40 QUANTITY OF OUTPUT (Shirts) PRICE AND COST (Dollars per shirt)Suppose that the market for air fresheners is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. (? 40 36 Profit or Loss 32 28 24 АТС 16 12 AVC MC 4 4 8 12 16 20 24 28 32 36 40 QUANTITY OF OUTPUT (Air fresheners) PRICE AND COST (Dollars per air freshener) 20TOTAL 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…