Answer the following question based on the graph below, which is for Blue Smooth Yoga Mats Ltd. one of 50 small firms operating in the industry. Price, costs 90 15 75 60 60 45 30 15 0 D MR AC MC 125 250 375 500 625 750 875 1000 1251250 Quantity per period a. What is the profit-maximizing output? Output: b. What price will the firm charge? Price: $ c. How much excess capacity exists at the output in (a)? Excess capacity:
Q: Draw the total, average, and marginal cost curves in the long-run and short-run in one diagram. Draw…
A: A cost curve is the graphical representation of the cost function of a firm. Usually, their shape is…
Q: Jane has a budget of $120 to spend at the mall. Her two favorite items are bags (Product X) which…
A: The objective of this question is to find the combination of products X and Y that maximizes Jane's…
Q: WAGES (Dollars perteacher) Suppose that the states pass a law that prohibits home schooling and…
A: since now students will go to public school, demand for teachers will rise causing a rightward shift…
Q: None
A: Total utility is the total satisfaction that the consumer derives from consumption of goods.Marginal…
Q: Consider a fictional economy that is operating at its long-run equilibrium. The following graph…
A: In order to foster economic growth and prosperity, supply-side economics places a strong emphasis on…
Q: 1. Assume a perfectly competitive market is represented by the functions Qd=-4p+ 400 and Qs=p. If a…
A: The objective of the question is to determine the revenue, total cost, and profit of a firm…
Q: No answer from Chat GPT will downvote.
A: Explanation for each point (brief):a. Better reflect current household expenditure patterns:As…
Q: Consider two open economies, A and B, characterized by the equations on the right. The parameters m,…
A: Here we have to calculate the output and exports of both the countries given the values and…
Q: 1. Consider an economy where the production function is Y = K0.5 (LE)0.5 The depreciation rate is =…
A: Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: Income Quantity of good X purchased Quantity of good Y purchased $32,000 14 28 $48,000 22 23…
A: The objective of the question is to calculate the income elasticity of demand for good Y using the…
Q: What Is Debt Management
A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…
Q: The formula for the is curve can be derived from the formula Y = [CO+MPC(Y-T)]+1+G. When the IS…
A: The objective of the question is to derive the IS curve from the given formula and then calculate…
Q: A cookie company wants to expand its retail operations. Based on a preliminary study, 10 stores are…
A: Step 1: Given Value for Calculation Cash Flow = cf = $150Time = t = 5 YearsInitial Investment = i =…
Q: None
A: Title: Understanding Cartel Behavior and Price Fixing in the Natural Gas MarketIn the fictional…
Q: Title Use the equilibrium of the second-price, Dutch, and English auctions to construct…
A: An auction is a public sale wherein goods, services, or houses are sold to the very best bidder. In…
Q: Suppose Dr. Splendor is the only instructor of Magical Economics employed by the College of…
A: In economic terms, contractual wages entail mutually agreed-upon terms between employers and workers…
Q: Game theory is: O a view on the development of children's games and toys. O the analysis of market…
A: Game theory is the science of analyzing strategic interactions between rational decision-makers. It…
Q: Suppose output per worker in the US is four times (4.0) output per worker in China. Suppose capital…
A: TFP considers the efficiency with which capital and labor are used to produce output. Given:Y as the…
Q: Which of the following is NOT a problem associated with implementing fiscal policy. a. Policy lags…
A: Fiscal policy refers to the government's use of taxation and public expenditure to influence the…
Q: Hi hlo Expert pro Hand written solution is not allowed.
A: Answers:1. One reason why the cost curves shown in the graph would shift from AVC1 to AVC2, ATC1 to…
Q: Dear Expert hero pro Hand written solution is not allowed.
A: Steps to Find Total Utility Function (U(x,y)) Recognize Marginal Utility: The provided functions (Ux…
Q: A natural gas company has a low average total cost due to its large scale production. The initial…
A: The objective of the question is to identify the type of barrier to entry that explains why a…
Q: en the following data, answer four questions about the money supply and the money multiplier. tal…
A: Since the government is the one that produces currency, whether it be in the form of paper money or…
Q: The table below shows information for 3 stocks. Security Beta Risk-free rate Expected market…
A: 1. Understand the CAPM Formula:The CAPM formula calculates the expected return of a stock based on…
Q: Your bank has the following balance sheet: Assets Liabilities Checkable Reserves $90 million $380…
A: To solve this problem, we need to calculate the new balance sheet of the bank after the $20 million…
Q: 11. Refer to the table below Output Total Variable Cost Total Cost 012345678 $0 $100 $100. $200 $140…
A: i hope you got the concept. if you feel like having any doubt in any part of the question then feel…
Q: If the government puts a price ceiling in this market at a price of $20, then there will be a A)…
A: Price ceiling is a government imposed price control which is the maximum price that can be charged…
Q: Equilibrium price will decrease and equilibrium quantity will decrease in the widget market, if: A)…
A: Customers are encouraged to move from buying widgets to the substitute goods when the price of the…
Q: None
A: Referencehttps://www.sciencedirect.com/science/article/pii/S2666202723000125
Q: Consider Bridget. Bridget makes Widgets and Wodgets, a most favored snack. Given the popularity of…
A: Price Discrimination: This refers to the practice of charging different prices for the same product…
Q: Which of the following increases the market supply of roses? A) A decrease in energy costs B) An…
A: It refers to the quantity(Q) of services and items that producers are ready and able to offer for…
Q: Demand-pull inflation occurs when: A) Costs of production decrease B) Aggregate demand exceeds…
A: To understand demand-pull inflation, it's crucial to grasp the relationship between aggregate demand…
Q: OUTPUT OF TANKS Graph 2.1 PPC2 PPC1 OUTPUT OF AUTOMOBILES Bulgaria's production possibilities curve…
A: The PPF referred to as the production possibility curve (PPC). It is a key economic concept that…
Q: As the manager of Smith Construction, you need to make a decision on the number of homes to build in…
A: Profit refers to the financial benefit received when the revenue generated from commercial…
Q: 2. Short Run Production Function and Total Product curve. You will need words, a chart and a graph…
A: Short-Run Production Function and Total Product Curve: In the short run, some factors are fixed…
Q: Boyd has the following utility function: U = 100B√C where B represents books and C represents audio…
A: Boyd's utility function is given as U = 100B√C, where B represents books and C represents audio CDs.…
Q: Using the following table, for each price level, calculate the optimal quantity of units for the…
A: Competitive market is a market where there are large number of firms and each firm is competing with…
Q: P $6 $4 $2 0 3 6 9 S D Based on the graph above, at $2, there would be a in this market:
A: Diagram: In the given case, equilibrium occurs at point E, where the demand curve cuts the…
Q: At these points: A B C D E F G H Capital-labor ratio: 0 10,000 20,000 22,000 23,512 25,000 30,000…
A: At steady state equilibrium, following condition must hold:sy = (n+d)kwhere s is saving rate, y is…
Q: Suppose you have been hired as a management consultant by a major optimally price gasoline at its…
A: Gross domestic product is the final combination of goods and services at a country's border. GDP is…
Q: 6 45:42 labor force is 180 million. The number of employed workers in this economy is Multiple…
A: In explaining the concept of the labor force and the calculation of employed workers within an…
Q: Consider an industry with 6 identical firms, each facing a demand Q = 30,000 x [1/6 - 1/20 (p - p)],…
A: The total cost divided by the quantity of units produced is the average cost. The additional expense…
Q: give me accurate answer
A:
Q: A decrease in government purchases of $6 billion leads to an initial $4.5 billion decrease in…
A: The marginal propensity to withdraw refers to the portion of the additional income a consumer…
Q: Year Returns X Y 116% 22% 2 30 31 3-23-28 4 11 12 5 10 22 Using the returns shown above, calculate…
A: given:YearXY116%22%230%31%3-23%-28%411%12%510%22% Step 1: Find the arithmetic average…
Q: Refer to the following diagram: Aggregate consumption (C) 60 60 130 200 270 1 45° 0 100 200 300…
A: illustrate the relationship between individual and total consumption and individual and total gross…
Q: None
A: Cost-push inflation occurs when the prices of goods and services rise due to increased production…
Q: Is it ethical for a government to act in ways that socialize financial risks or losses while…
A: The ethics of such actions can be debated, but many argue that such practices can be considered…
Q: Directions: In the space provided, draw supply and demand for each of the following prompts. Label…
A: Supply and demand are fundamental concepts in economics that describe the behavior of sellers and…
Q: None
A: This problem involves several key concepts from the field of microeconomics, specifically related to…
Step by step
Solved in 2 steps
- What two lines on a cost curve diagram intersect at the shutdown point?The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total variable costs are 20 for one aquarium, 25 for two units, 35 for the three units, 50 for four units, and 80 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the Profit-maximizing quantity of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.A firm on competitive market has the data about cost as below Q,0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 TC 100160208254290320340355370390430475525580640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. c. Determine the supply curve of this firm 3. A firm on competitive market has the data about cost as below Q 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TC 100 160 208 254 290 320 340 355 370 390 430 475 525 580 640 a. Form a table with numbers about: total revenue, average cost, average variable cost and marginal cost of this firm. Determine the quantity that this firm will shutdown b. To maximize the profit, what will be the output of this firm if the price of product is 45 and if the price is 50. C. Determine the supply curve of this firm
- Using the graph below, calculate the firm's profits at the profit maximizing output Price 408 384 360 336 312 288 264 240 216 192 168 144 120 96 72 48 24 0 0 56 112 168 224 280 336 392 448 504 560 616 672 728 784 840 896 Quantity -PMRMC-ACSol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in thousands) 130 120 110 100 90 80 70 60 50 40 30 20 10 0 Price: $ 15. 45 75 9010512013550165180195 30 60 Quantity per period (in thousands) MC D thousands a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points. b. What are Sol-Motors' profit-maximizing output and price? Output: thousands Tools MR K c. Suppose that the government of Lidia imposes a price ceiling of $35,000 per car. What is the firm's profit-maximizing output now? Profit-maximizing output: thousands d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly? Output: thousandsMonoMed, having a Patent on production of a medicine, has following Demand and Cost Schedule : Price (Rs ) 12 11 10 9 8 7 6 5 4 3 Quantity 0 1 2 3 4 5 6 7 8 9 TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68 Where Fixed Cost is Rs 5 c. What is the profit maximizing rates of output and price? Also, indicate the values on the graph.
- Macmillan Learning The diagram depicts the cost curves and the marginal revenue curve of a price-taking firm that produces cherries. Identify each item in the graph of this cherry producer. There are more labels than boxes. The average total cost (ATC), marginal cost (MC), and marginal revenue (MR) curves are already labeled. S ATC MC MR Answer Bank ATC at the profit-maximizing output output at the minimum ATC Josses market price Quantity of cherries profits profit-maximizing output minimum ATCSuppose Felix runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Felix's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for frying pans quantities zero through seven (inclusive) that Felix produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 50 25 0 -25 0 1 ● ^ 2 O ☐ A ☐ A 3 4 5 QUANTITY (Frying pans) O ☐ 6 Total Cost ☐ 7 8 o Total Revenue Profit ? image 1 Calculate Felix's marginal revenue and marginal cost for the first seven frying pans 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 at each quantity.Consider the total cost and total revenue given in the following table: Quant Total Total Prof Marginal Revenue Marginal Cost ity Cost Revenue 8. 1 9 8 10 16 11 24 4 13 32 19 40 6. 27 48 7. 37 56 1. Calculate profit for each quantity (write your answers in the column provided above). How much should the firm produce to maximize profit? 2. Calculate the marginal revenue and marginal cost for each quantity (write your answers in the columns provided above). Illustrate in a graph the marginal revenue and marginal cost below. Identify the profit maximizing quantity.
- E E on The diagram illustrates the demand curve, isoprofit curves and the marginal cost curve of MQ2020, a luxury car manufactured by MQ Motors. Assume that MQ Motors currently chooses to operate at Point E. Which statement correctly describes the market of MQ2020? 10,000 Price, marginal cost (5) Pt-$5,440 Po B 0 190 20 Q=32 D Qo Quantity of cars, Q Marginal cost Isoprofit curve $150,000 Isoprofit curve 563,360 Demand curve 120 Select one: O a. Total surplus is not being maximised. Ob. Deadweight loss is the loss incurred by MQ Motors for not selling more cars. O All possible gains from trade are being achieved as MQ Motors operates at its profit-maximising output and price. Od. The amount of consumer surplus is the area ADP. O e. Pareto efficient allocation is currently being achieved.the table below shows the output cost and revenue situation of a firm. Study the table and asnwer the questions that fllows Q TVC TC MC P TR MR 0 0 150 0 200 0 - 1 110 C 110 175 175 175 2 170 320 G 150 I L 3 A D 46 135 405 105 4 250 E 34 120 J M 5 B 445 H 105 525 45 360 F 65 90 K N (a) what is the fixed cost of the firm? Explain your answer (b) determine the values from A-M by showing all workings employed (c) At what quantity and price is the firm in equilibrium position and in what market is the firm oeperating? explain your answerDon't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?