Chapter 9, Shut Down Rule Asg Revised-1

Concept Question 3.21 Question Help v The following table shows marginal and average total cost schedules for a perfectly competitive firm. Currently, the market price in this industry is $40. Output (units) (Q) Marginal Cost (MC) Average Total Cost (ATC) 10 35 20 28 3 30 18 40 31 50 35 A profit-maximizing firm will produce units. (Enter your response as an integer.)

QUESTION 20 Study the table below which represents the cost and price schedules facing a perfectly competitive firm that manufactures bulbs. Use this information to answer the question. Quantity of the product 0 1 2 3 4 Price per unit (R) 10 10 10 10 10 10 c) d) 38022222 Total revenue Total profit (R) -10 -9 -5 -6 Marginal cost (R) . 9 6 8 10 13 Average variable cost (R) 9,00 7,50 7,67 8,25 9,20 This perfectly competitive firm will produce a) 3 bulbs, since losses are minimised. b) 4 bulbs, but it will consider shutting down in the short run. 4 bulbs, since at this production level it earns normal profit. 4 bulbs and will stay in operation.

Price (AUD)/20 Kg bag 60 MC 50 ATC 40 MR-DD=AR AVC 30 20 10 100 200 300 400 500 600 700 800 900 Rice (Bags/month) The above diagram illustrates the short run cost curves for Sarah Mat, a rice farmer in Queensland. Calculate the profit or loss for Sarah Mat and, examine the key characteristics for perfect competition firm with reference to Sarah's farm.

Use table to find the required values: Price $32 Quantity 400,000 Explicit costs $3,500,000 Implicit costs $4,100,000 (A) Calculate total revenue. (B) Calculate accounting profit. (C) Calculate economic cost. (D) Calculate economic profit.

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)

Total Revenue Total C ost Proit/Loss/ Price( P) Quantity (TR) (TC) Break Even $3 5. 2 9. 3 8. 4 11 5. 15 6. 21 30 8. 42 6. 60 10 85 Yummy Cupcakes is a purely competitive firm. The firm's costs are shown in the table above. The market price is $5 (USE THIS TO FILL IN THE PRICE COLUMN) When Yummy Cupcakes produces 1 cupcakel Q-1).the firm : O breaks even incurs a loss O earns profits will shutdown

Output (unit) Total Cost (RM) Price (RM) - - 1 550 660 2 670 585 3 720 510 4 740 435 5 800 360 960 285 1190 210 1520 135 2160 60 Table 3 Table 3 shows data for a firm's production and costs in the long run. b. What is the fixed cost of this production? d. Does the firm make a profit or loss? e. Can we consider this is an imperfectly competitive firm? Why?

Click on the table icon that shows the fixed costs, variable costs, and total costs for different output levels. Then use this data to help fill in the missing information in the table below. Quantity 0 1 2 3 Average Average Fixed Cost Variable Cost 4.67 - $5.00 Average Total Cost $ 15.00 C Price Quantity B

Required information The following figure shows the costs for a perfectly competitive producer. AVC, ATC, MC $45 40 35 30 25 201 15 10 5 0 C 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period Refer to the above figure to answer this question. If the price of the product is $35, what is the profit-maximizing output?

only typed answer   Assume a competitive firm faces a market price of ​$120​, a cost curve​ of:   C​ = 13q3 + 20q + 500​,   and a marginal cost​ of:   MC = q2 +20.   What is the​ firm's profit maximizing output​ level?   ?? Units ​(round your answer to two decimal​ places)   What is the​ firm's profit maximizing​ price?   ??? ​ (round to the nearest penny​)   What is the​ firm's profit?   ???​ (round to the nearest npenny​)   In the​ short-run, this firm should ??   produce or shut down??

The following table shows Farmer Parker's revenue, cost, and profit from wheat farming Quantity (bushels) (Q) Total Revenue Total Cost Marginal Revenue (MR) Marginal Cost (MC) Profit (TR-TC) $-3.00 -2.00 0.00 2.50 4.50 6.00 6.00 5.50 2.50 -3.00 (TR) $0.00 (TC) $3.00 6.00 8.00 9.50 11.50 1. 2 3. 4.00 $4.00 3.00 8.00 4,00 2.00 12.00 16.00 20.00 4.00 1.50 4 4.00 4.00 4.00 4.00 2.00 2.50 4.00 14.00 6 18.00 22.50 29.50 39.00 51.50 24.00 7 28.00 32.00 36.00 40.00 4.50 8. 4.00 7.00 9.50 4.00 10 - 11.50 4.00 12.50 Farmer Parker's profit-maximizing level of production is 6 bushels of wheat. At this level of production he produces following the rule Marginal Revenue = Marginal Cost and earns the maximum possible profit of $6.00. Farmer Parker's fixed costs are $3. (Enter your responso rounded to two decimal places.) Suppose that foced costs increase by $1.50. Farmer Parker's new profit-maximizing level of production after the increase in fixed costs is bushels of wheat The amount of profit that…

16. In the accompanying table, you are given information about two firms that compete in a price-taker market. Assume that fixed costs for each firm are $20. a. Complete the table. b. What is the lowest price at which firm A will produce? c. How many units of output will it produce at that price? (Assume that it cannot produce fractional units.) d. What is the lowest price at which firm B will produce? e. How many units of output will it produce? f. How many units will firm A produce if the market price is $20?

Choco Lovers Cost and Revenue Quantity of Gift Boxes TC ($) MC ($) MR ($) AR ($) 5 60 2   12.00 10 67 1.50 1.4 6.7 15 77 2 2 5.13 20 92 3 3 4.6 25 117 5 5 4.68 30 152 7 7 5.06 The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a purely competitive firm producing different quantities of chocolate gift boxes. The market price for a box of chocolates is $3 per box.   Instructions: Enter your answers as a whole number.   a. Fill in the marginal revenue (MR) and average revenue (AR) columns. Instructions: For profit/loss, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. A loss should be entered as a negative number.   b. Given a price of $3 per gift box, how many boxes of chocolate should Choco Lovers produce?        gift boxes        What will the profit or loss be per gift box?        $ per gift box   c.…

The following diagram shows cost curves for a perfectly competitive firm. SMC 2.60 ATC AVC 1.60 1.50 0.80 0.70 0.60 500 800 1100 Output Price and cost (dollars)

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.

Lisa lawn company (LLC) is a lawn mowing business in a perfectly competitive market for lawn moving services. The following tables set out Lisa's costs Quantity(lawn per hour) Total Cost(dollars per lawn) 0 $30 1 $40 2 $55 3 $75 4 $100 5 $130 6 $165 A. If the market price is $30 per lawn, How many lawns per hour does Lisa's LLC now? B. If the market price is 30 per lawn, What is Lisa"s profit in the short run? C. if the market price falls to $20 per lawn, how many lawns per hour does Lisa's LLC now? D. if the market price falls to $20 per lawn, what is Lisa's profit in the short run? E. At What market price will Lisa shut down?

0 1 2 3 4 5 Problem 1. Fill out the missing data. Quantity Total Cost Marginal Cost Fixed Cost Variable Cost Average Total Cost - Average Variable Cost 7 10 37 22.5 10.50 15 The market price for the firm's output is $14.50. a) What quantity will the firm produce? Q = b) What is the firm's profit? Profit= P = P = c) What is the breakeven price? d) What is the shutdown price? f) Are consumers or producers affected by the tax more? Explain.

3.1. Fill out the table below.      Unit           Marginal Marginal Quantity (Q) Price (P) Total Revenue (TR) Fixed Cost (FC) Variable Cost (VC) Total Cost (TC) Profit   Cost   Revenue   14   $10 140 $3 40 $43     - 15   $10 150 $3 48 $51     10 16   $10 160 $3 57 $60     10 17   $10 170 $3 67 $70     10 18   $10 180 $3 78 $81     10   3.2. Is the table above pertaining to a perfectly competitive firm or monopoly? How can you tell?

AP CollegeBoard Test Booklet Unit 4 Problem Set Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. Use the graph provided below to answer parts (a)-(e). Marginal Cost Average Total Cost Average Variable Cost 30 25 19 17 11 10 Demand 0 4 9 15 20 28 38 43 Quantity Marginal Revenue EarthScience, a profit-maximizing firm, has a patent on a carbon capture technology, making it the only producer of that technology. The graph above shows EarthScience's demand, marginal revenue, average total cost, average variable cost, and marginal cost curves. (a) Calculate EarthScience's total revenue the firm produces the allocatively efficient quantity. Show your work. (b) Starting at a price of $30, if EarthScience were to increase the price by 6%, will the quantity…

36 Total Total Average Average Output Fixed Variable Total Variable Total Marginal (Q) Cost Cost Cost Cost Cost Cost I of 150 $500 $400 $900 $2.67 200 $500 $800 $1,300 $6.50 The table above shows costs for a firm. When Output (Q) changes from 150 to 200, Marginal Cost (MC) is equal to: Select one: a. $400 b. $8.00 c. $4.00 d. $5.00

Case D: Apex Company. Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost schedule in the table below. Apex’s product sells for $200 per unit.    Quantity (units)   0   1   2   3   4   5   6   7   8   9   10 Total Variable Cost (TVC)   0   100   180   220   300   390   500   640   800  1000  1250 Answer the following questions:  If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case? If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case? Comment on your answers to parts (1) and (2).

Required information The following figure shows the costs for a perfectly competitive producer: AVC, ATC, MC $46 235 30 25 20 15 10 5 0 MC 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period Refer to the above figure to answer this question. If the price of the product is $10, what is the profit-maximizing (or loss-minimizing) output?