Homework Answers
ATC=TC/Q
a) 1200 units
ATC =450/1200 = 0.38
1000 units
ATC = 300/1000 = 0.30
700 units
ATC = 275/700 = 0.39
b) No because in the long run, the firm will produce where ATC is minimum
c) P = Minimum ATC = 0.30
Add Answer to:
A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $450. If the...
A firm in a purely competitive industry is currently producing 1,200 units per day at a...
A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $450. If the firm produced 1,000 units per day, its total cost would be $300, and if it produced 700 units per day, its total cost would be $275. Instructions: Round your answers to 2 decimal places. a. What are the firm's ATC at these three levels of production? At 1,200 units per day, ATC = $ 0.33 At 1,000 units...
Question: Why in the long run, the purely competitive firm in a constant cost industry achieves...
Question: Why in the long run, the purely competitive firm in a constant cost industry achieves only normal profits? Select one: a. New firms entering the industry increase supply, reduce price and squeeze out the the economic profit. b. In the long run, normal profit is not the only situation that can face a purely competitive firm . c. New firms entering the industry do not affect supply since they divide up the existinng market, but costs to the firm...
Exercise 10.6 Assume that a firm in a perfectly competitive industry has the following total cost...
Exercise 10.6 Assume that a firm in a perfectly competitive industry has the following total cost schedule: Calculate a marginal cost and an average cost schedule for the firm to complete the following table. Output Total Cost Marginal Cost Average Cost (units) ($) ($) ($) 10 440 15 600 20 720 25 900 30 1,200 35 1,540 40 1,920 If the prevailing market price is $68 per unit, units will be produced. Profits per unit will be and total profits...
Please explain the process to solve these A firm in a perfectly competitive industry is producing...
Please explain the process to solve these
A firm in a perfectly competitive industry is producing 1,000 units of output and earning total revenue of $55,000. If average total cost is equal to $60, marginal cost is equal to $55, and fixed costs are equal to $1,000 at that level of output, what should the firm do to maximize profit? VIEW RESULTS START shut down MC138716 increase output MC138717 decrease output (but not shut down) MC138718 The firm is already...
A firm in a purely competitive industry has a typical cost structure. The normal rate of...
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as whole numbers. a. What is its percentage rate of return? percent b. Is the firm earning an economic profit? (Click to select) If so, how large? percent c. Will this industry see entry or exit? (Click to select) d. What...
A firm in a purely competitive industry has a typical cost structure. The normal rate of...
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. This firm is earning $15 on every $150 Invested by its founders Instructions: Enter your answers as whole numbers a What is its percentage rate of return? 10 percent b. Is the firm earning an economic profit? Yes If so, how large? percent c. Will this industry see entry or exit? (Click to select) d. What will...
A firm in a perfectly competitive industry is currently producing 150 units of output at a...
A firm in a perfectly competitive industry is currently producing 150 units of output at a price of $55 per unit. If marginal cost is equal to $50 and profit is equal to $500 at that level of output, what should the firm do, if anything, to maximize profit?
(43) Assume a single firm in a purely competitive industry has short-run production costs as indi...
(43) Assume a single firm in a purely competitive industry has short-run production costs as indicated in the following table. Answer questions a through c using the data from this table. TVC-Total variable Costs. TC=Total Costs: AFC=Average Fixed Costs; AVC=Average Variable Costs; ATC-Average Total Costs; MC-Marginal Costs Total Output Total Variable Cost $ TVC TC 0 $5.00 $8.00 $10.00 $11.00 $13.00 $16.00 $20.00 Total Cost $ Average Average Average Total Cost Cost $ MC Marginal Fixed CosVariable $ AFC Cost...
If Firm A opertes in a perfectly competitive industry, with market price = $1,200/unit. If Firm...
If Firm A opertes in a perfectly competitive industry, with market price = $1,200/unit. If Firm A's total cost function is given by TC(g)-20 80q 200, find Firm A's profit maximizing level of output. Using the information from the above question: is the market in which Firm A is selling its output currently in long run equilibrium?
Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in...
Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. What should we expect in the long run on the number of firms, market supply and equilibrium price? MC ATC AVC MR P
A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $450. If the firm produced 1,000 units per day, its total cost would be $300, and if it produced 700 units per day, its total cost would be $275. Instructions: Round your answers to 2 decimal places. a. What are the firm's ATC at these three levels of production? At 1,200 units per day, ATC = $ 0.33 At 1,000 units...
Please explain the process to solve these
A firm in a perfectly competitive industry is producing 1,000 units of output and earning total revenue of $55,000. If average total cost is equal to $60, marginal cost is equal to $55, and fixed costs are equal to $1,000 at that level of output, what should the firm do to maximize profit? VIEW RESULTS START shut down MC138716 increase output MC138717 decrease output (but not shut down) MC138718 The firm is already...
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as whole numbers. a. What is its percentage rate of return? percent b. Is the firm earning an economic profit? (Click to select) If so, how large? percent c. Will this industry see entry or exit? (Click to select) d. What...
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. This firm is earning $15 on every $150 Invested by its founders Instructions: Enter your answers as whole numbers a What is its percentage rate of return? 10 percent b. Is the firm earning an economic profit? Yes If so, how large? percent c. Will this industry see entry or exit? (Click to select) d. What will...
(43) Assume a single firm in a purely competitive industry has short-run production costs as indicated in the following table. Answer questions a through c using the data from this table. TVC-Total variable Costs. TC=Total Costs: AFC=Average Fixed Costs; AVC=Average Variable Costs; ATC-Average Total Costs; MC-Marginal Costs Total Output Total Variable Cost $ TVC TC 0 $5.00 $8.00 $10.00 $11.00 $13.00 $16.00 $20.00 Total Cost $ Average Average Average Total Cost Cost $ MC Marginal Fixed CosVariable $ AFC Cost...
If Firm A opertes in a perfectly competitive industry, with market price = $1,200/unit. If Firm A's total cost function is given by TC(g)-20 80q 200, find Firm A's profit maximizing level of output. Using the information from the above question: is the market in which Firm A is selling its output currently in long run equilibrium?
Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. What should we expect in the long run on the number of firms, market supply and equilibrium price? MC ATC AVC MR P
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago