Rose growing is perfectly competitive and all growers have the same costs. The market price is $27 a bouquet and each grower maximizes profit by producing 2,700 bouquets a week. Average total cost is $21 a bouquet and average variable cost is $17 a bouquet. Minimum average variable cost is $9 a bouquet. What is the economic profit that each grower is making in the short run? In the short run, each grower is of Sa week. >>> If the firm incurs an econom vindow and do not enter a minus sign. making an economic profit incurring an economic loss

Rose growing is perfectly competitive and all growers have the same costs. The market price is $27 a bouquet and each grower maximizes profit by producing 2,700 bouquets a week. Average total cost is $21 a bouquet and average variable cost is $17 a bouquet. Minimum average variable cost is $9 a bouquet. What is the economic profit that each grower is making in the short run? In the short run, each grower is of Sa week. >>> If the firm incurs an econom vindow and do not enter a minus sign. making an economic profit incurring an economic loss

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.7IP

See similar textbooks

Similar questions

Everett also works in the perfectly competitive manicure industry. The market price is $20 and he does 15 manicures a day. Given that his average total cost is $22, his total revenue is $300, and fixed costs are equal to $150, we know that Everett's Select one: a. average profit is - $4.00 b. average variable cost is $12 c. marginal revenue is $22 d. average fixed cost is $1.33
K Poinsettia growing is perfectly competitive and all growers have the same costs. The market price is $21 a pot and each grower maximizes profit by producing 2,100 pots a week. Average total cost is $17 a pot and average variable cost is $15 a pot. Minimum average variable cost is $7 a pot. What is the price at the grower's shutdown point? The price at the grower's shutdown point is $a pot.
Basti’s Coffee operates in a competitive market. The short run price in the coffee market is equal toBasti’s Coffee average variable cost. Using two correctly labeled graphs show the coffee market side by side with Basti’s Coffee. Show the long run adjustments in eachof the following:price and quantity in the coffee market ii. price and quantity for Basti’s Coffee
If a profit-maximizing, competitive firm is producing a quantity at which marginal cost is between average variable cost and average total cost, it will A. keep producing in the short run but exit the market in the long run. B. shut down in the short run but return to production in the long run C. shut down in the short run and exit the market in the long run. D. keep producing both in the short run and in the long run.
Rose growing is perfectly competitive and all growers have the same costs. The market price is $16 a bunch and each grower maximizes profit by producing 1,100 bunches a week. Average total cost is $18 a bunch and average variable cost is $10 a bunch. Minimum average variable cost is $5 a bunch. What is each grower's economic profit at the shutdown point? Each grower's economic profit at the shutdown point is dollars a week. >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm earns an economic profit, do not include a plus sign.
The WipeOut Ski Company manufactures skis for beginners. Fixed costs are $30. Fill in Table 7.16 for total cost, average variable cost, average total cost, and marginal cost., now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of $25 each. a. What will be the company’s profits or losses? b. How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? c. At the given quantity and price, is the marginal unit produced adding to profits?
Poinsettia growing is perfectly competitive and all growers have the same costs. The market price is $30 a pot and each grower maximizes profit by producing 2,600 pots a week. Average total cost is $15 a pot and average variable cost is $13 a pot. Minimum average variable cost is $5 a pot. What is the economic profit that each grower is making in the short run? In the short run, each grower is of $a week. >>> If the firm incurs an economic loss, select loss in the dropdown window and do not enter a minus sign.
A profit-maximizing firm is producing where MR = MC and has an average total cost of $4, but it gets a price of $3 for each good it sells.a. What would you advise the firm to do? The firm should shut down in the short run and exit the market in the long run. The firm is producing where MR = MC, so it should produce in both the short run and long run. As long as average variable costs are less than $3, in the short run, the firm should produce. In the long run, it should exit the market. The firm should shut down in the short run. Once the firm recoups its fixed costs, it should produce in the long run. b. What would you advise the firm to do if you knew average variable costs were $3.50? The firm should exit the market in the long run, but it should produce in the short run since it is covering average fixed costs. The firm should shut down in the short run. Once the firm recoups its fixed costs, it should reopen in the long run. The firm…
A profit-maximizing firm in a competitive market is currently producing 500 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
Tulip growing is perfectly competitive and all growers have the same costs. The market price is $25 a bunch, and each grower maximizes profit by producing 2,000 bunches a week. The average total cost is $20 a bunch, and the average variable cost is $15 a bunch. The minimum average variable cost is $12 a bunch. Please draw graphs where necessary. What is the economic profit that each grower is making in the short run? What is the price at the grower’s shutdown point? What is each grower’s economic profit at the shutdown point?
What is the long-run market supply curve for hibiscus plants? Graph it.
What are some characteristics of perfect competition? Is the Banana market a perfect competition? When you are buying bananas, what is your decision making process? Do you have any favorite brand of banana? How can companies in the market compete? Please name some other examples of perfect competition?