At Nick's Bakery, the cost to make a cheese danish is $1.50 per danish. As a result of selling 10 danishes, Nick experiences a producer surplus in the amount of $20. Nick must be selling his danishes for O a. $2.00 each. O b. $3.50 each. O c. $5.00 each. O d. $0.50 each.

At Nick's Bakery, the cost to make a cheese danish is $1.50 per danish. As a result of selling 10 danishes, Nick experiences a producer surplus in the amount of $20. Nick must be selling his danishes for O a. $2.00 each. O b. $3.50 each. O c. $5.00 each. O d. $0.50 each.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 6SCQ: A firms marginal cost curve above the average variable cost curve is equal to the films individual...

See similar textbooks

Related questions

Q: Given: Cash flows for an investment. Required: EUAC at 7% per year (i.e., Calculate EUAC). Year 2…

A: YearCash flowPV factorPresent…

Q: Janet Yellen is currently working as A) the U.S. Treasury Secretary. B) the Chief Economic…

A: Renowned economist and legislator Janet Yellen is well-known for her significant contributions to…

Q: please explain how the answer is 1.5 and 7, i thought profit was maximized was when MR=MC or if its…

A: A key idea in microeconomics is the premise that profit is maximized when Marginal Revenue (MR)…

Q: Assets Liabilities Deposits: $1450000 Capital: 0 Required Reserves: $460000 Loans $150000 Bonds:…

A: TD Bank has a deposit of $1450000. TD Bank has a required reserve of $460000.TD Bank has loans of…

Q: Consider an economy that targets an inflation rate of 2 percent. After reviewing economic changes,…

A: This question focuses on to analyze how altering the inflation target affects the MPRC and its…

Q: What is the Unpleasant Monetarist Arithmetic? Were its predictions about the US economy correct? How…

A: The money supply has a significant impact on economic outcomes, particularly inflation and, to a…

Q: fasha owns a muffin shop. Her marginal cost, average variable cost, and average total cost curves…

A: Economic profit is one kind of profit which is determined by using the subtraction between the total…

Q: Given the following demand and supply functions find the consumer surplus and producer surplus when…

A: A demand function outlines how the price of a product influences consumer buying decisions,…

Q: 28) If the required reserve ratio is 10% and the Federal Reserve purchases $50 million in treasury…

A: Since you have posted two independent McQs, according to the guidelines, only the first McQ is…

Q: What level of social-political complexity is redistribution (as the basic force of economic…

A: Economics is a vast and multifaceted social science that can be defined in several ways, depending…

Q: If Gladys sells her 1998 Jeep Cherokee for $3,500 in 2016, the sale of her car contributes $3,500 to…

A: The growth of GDP is related to any form of contribution made from any form of expenditure in the…

Q: Let a = 8 and k = 1. Compute the equilibrium prices, quantities and profits. .

A: As far as I have checked, the expert has made some errors in deriving the best response function and…

Q: Suppose that both countries produced at point C and that Rhineland traded 100 units of its…

A: International trade refers to the exchange of goods, services, and capital between countries. It is…

Q: Refer to the graph that depicts Joe's family restaurant in a perfectly competitive market. If price…

A: A perfectly competitive market is the kind of market with multiple sellers producing identical…

Q: The requirement of a "double coincidence of wants" is the chief a. advantage; barter b.…

A: A barter system is an ancient form of exchange. In a barter system goods and services are exchanged…

Q: Figure: Inflationary and Recessionary Gaps Price level Price level SRAS P₂ *** P₁ AD P₂ Panel (a) P₁…

A: The economy will be in recessionary gap when short run equilibrium output is less than long run…

Q: Based on the following statistics, how much is consumption? Total spending Investment Government…

A: Gross Domestic Product (GDP) is a key indicator of the economic performance of a country. It…

Q: If the Fed lowers the discount rate (relative to the federal funds rate), banks will (likely) borrow…

A: To address this inquiry, understanding several critical concepts in monetary policy is essential…

Q: Your company has estimated its total cost to be TC = 3500 + 0.05Q + 0.0008Q2; its marginal cost is…

A: The study of how firms make decisions and allocate resources in the face of numerous obstacles is…

Q: The demand for seats per game, at a local stadium that seats a maximum of 40 million per game, is P…

A: A firm maximizes profit when it produces at the point where marginal cost and marginal revenue are…

Q: Based on what we observed in the module on public finance, select all true statements. 0 0 0 Over…

A: Public finance refers to the management of a country's revenue, expenditures, and debt load through…

Q: What will be the short-run profit of this firm? a. $380 Ob. $360 O c. $250 O d. $230 O e. $80 12)…

A: A market structure known as a monopolistic market occurs when one company or provider controls the…

Q: The existence of which type of dumping most likely constitutes the weakest argument for the…

A: Antidumping duties are tariffs imposed by a domestic government on foreign imports that are priced…

Q: a) Draw the AD-AS diagram of an economy in long-run equilibrium. Be sure to show aggregate demand,…

A: Macroeconomic analysis provides a thorough picture of an economy's financial situation. It detects…

Q: Price $16 14 12 10 8 6 4 2 Sd 10 20 30 40 50 60 70 80 90 Quantity Da Please refer to the graph…

A: The exchange of goods and services is known as trade, whereas when it happens internationally…

Q: Dreher's Designer Shirt Company, a monopolist, has the following cost and revenue information. What…

A: Marginal revenue is the change in TR. It is the change in TR divided by the change in quantity…

Q: indifference curves

A: Budget Line:A budget line is a graphical representation of the combinations of two items that a…

Q: Suppose the economy's price level is 2 and real GDP is 30 , 000 for the year. Suppose the money…

A: the velocity of money, which measures the frequency with which one unit of currency (e.g., a dollar)…

Q: What differences can you tell between high- and low-income countries regarding education level and…

A: Tradeoff in simple terms means trading one thing for more quantity of another thing or forgoing one…

Q: Why does the W–M–M theorem hold in the analysis of Chapter 22 but not in the analysis presented in…

A: Part (i): W-M-M Theorem and its ApplicabilityThe W-M-M theorem states that under certain…

Q: Say that Alland can produce 24 units of food per person per year or 6 units of clothing per person…

A: Absolute advantage arises when an entity has an ability to produce higher quantity of a good or…

Q: E). ABC and MNO agree to jointly maximize profits. If ABC and MNO each break the agreement and each…

A: A duopoly is a type of oligopoly market in which two firms sell a product to a large number of…

Q: In August of 2019, the number of employed persons in the United States was 144.2 million, the number…

A: The labor force comprises of total number of people who are actively employed and are looking for…

Q: Part I. You are the new owner of a candle shop in Greenwood Mall. Your first duty as new owner and…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: Which of the following is true? Question 37Answer a. The loanable funds model is essentially a model…

A: The two main models of the rate of interest are the loanable funds model and the money market model.…

Q: We already know what the standard monopoly graph looks like. Academically speaking, what does a…

A: In standard microeconomic analysis, a monopoly refers to a market structure where a single seller or…

Q: Principles of Macroeconomics Chapter 7-INFLATION Worksheet 1. Calculate the CPI for the following…

A: The consumer price index refers to the price of a certain basket of commodities at the price level…

Q: Consider the following games which are commonly used in laboratory exper- iments on social…

A: The term social preference refers to the inherent tendencies and priorities individuals have when…

Q: 2. Suppose you manage a factory with ten workers. Each worker's output is determined by the equation…

A: Profit maximization is an economic concept and goal pursued by businesses and firms. It refers to…

Q: Price Level Long-run AS Y, Y, Short-run AS AD Quantity of Real Output Suppose the economy is…

A: The short run refers to a period when wages and some other prices do not respond to changes in the…

Q: Government policy will make things worse if there is a Select one: a. positive demand shock and the…

A: This can be described as a concept that shows the contribution of an individual, organisation or any…

Q: Rate of Increase in the Price Level (%) 1 2 3 b 8 56 Unemployment Rate (%) Which of the following…

A: In the given figure, a curve is a downward-sloping curve that is depicted in a graph where the…

Q: When the Fed sells government securities (bonds), the money supply will ______ . a. first…

A: To understand the impact of the Federal Reserve's actions on the money supply, it's important to…

Q: gure 12.1) The concept of crowding in suggests that a government budget surplus would move the…

A: It depicts the link between private and public sector output. When the government budget is…

Q: In response to the Covid-19 recession of 2020, the Fed introduced temporary lending facilities that…

A: In the face of economic downturns, central banks, like the Federal Reserve (the Fed), implement…

Q: Consider a one-period model in which the representative consumer maximizes the utility U(C,L)= InC +…

A: A utility function, represented as U(C, L) with C as consumption and L as leisure, encapsulates…

Q: Look again at Figure 21.12. It appears that the investor in panel b can't lose and the investor in…

A: Stock price refers to the current market value of a stock of a publicly traded company. It is…

Q: market clearing condition would mean that the market demand equals to market supply for a particular…

A: The consumer aims to maximize the utility function U(x,y)=min(u,y), subject to the budget constraint…

Q: the Fed would conduct based on your above answer: In the money market, the Fed would the money…

A: The Federal Reserve (Fed) implements monetary policy in the economy model given by the Fed by…

Q: Suppose the figure to the right illustrates the marginal cost and marginal benefit from reducing…

A: Externalities are important in economics because they represent the unanticipated effects of one's…

Question

28.
29.
30.
31.
32.
O
O
O
O
At Nick's Bakery, the cost to make a cheese danish is $1.50 per danish. As a result of selling 10 danishes, Nick experiences a producer surplus in the amount of $20. Nick
must be selling his danishes for
O a. $2.00 each.
O
b. $3.50 each.
O c. $5.00 each.
O d. $0.50 each.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define PS

VIEW

Step 2: Calculate price

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

An industry currently has 100 firms, each of whichhas fixed cost of $16 and average variable cost asfollows:Quantity Average Variable Cost1 $12 23 34 45 56 6a. Compute a firm’s marginal cost and average totalcost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How muchdoes each firm produce? What is the total quantitysupplied in the market?c. In the long run, firms can enter and exit themarket, and all entrants have the same costs asabove. As this market makes the transition to itslong-run equilibrium, will the price rise or fall?Will the quantity demanded rise or fall? Will thequantity supplied by each firm rise or fall? Explainyour answers.d. Graph the long-run supply curve for this market,with specific numbers on the axes as relevant.
3. Answer the following questions about the figure below: eliqu Price $20 $18 $16 $14 $12 $10 $8. $6 $4 $2 0 MR D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Quantity MC a. What is the profit-maximizing level of output? iliw tailogonom off 010 +115d0-(899 moitiba T wilmM) loods.P b. What price with the monopolist charge to maximize profits?
A firm in a perfectly competitive market has an average total cost of $40 for the 100th good it sells. Its fixed costs are $100. The average total cost of the 101th good is $41. If the market price is $50 this firm should O sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue. O sell 101 because price is greater than average total costs. O sell 101 goods because it adds to profits. O sell 101 goods because its fixed costs are so low. 55. つ25 MacBook Air 000 esc F1 F2 F3 F4 F5 F7 23 $ & 1 3 7 Q W E R Y tab A S F G caps lock C V B shift alt
3. The components of marginal revenue Nick's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Nick produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Nick faces. As you can see, to sell the additional engine, Nick must lower his price from $80,000 to $40,000 per fire engine. Note that although Nick gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. PRICE (Thousands of dollars per fire engine) 200 180 160 140 120 100 Nick 0 1 2 4 Y 5. 6 QUANTITY (Fire…
10. An industry currently has 100 firms, each of which has fixed cost of $16 and average variable cost as follows: TT Quantity Average Variable Cost 1 $1 2 3 3 4 4 a. Compute a firm's marginal cost and average total cost for each quantity from 1 to 6. b. The equilibrium price is currently $10. How much does each firm produce? What is the total quantity supplied in the market? c. In the long run, firms can enter and exit the market, and all entrants have the same costs as above. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? Explain your answers. d. Graph the long-run supply curve for this market, with specific numbers on the axes as relevant. 2.
(Figure: Determining Production Strategies) Based on the graph, the price charged by the profit-maximizing firm is 13 12 11 10 O MC 9. 8. 7. O ATC O. O AVC O MR 2. 0. 3 4 7 8. Output $4.50. variable, depending on market demand. O $1. O $3. 5. 4, Price and Cost ($)
es $3.50 $3.00 $2.50 $2.00 $1.50 Price $1.00 $0.50 0 MR MC D 06 Bottles of shampoo (millions) 100 110 120 Tools DWL B Instructions: Round your answers for price to two decimal places. Enter your answers for quantity as a whole number. a. In the short run, the price of SqueakyKleen is $ and the quantity is b. The efficient price of SqueakyKleen is $ c. What is the deadweight loss? Instructions: Use the tool provided 'DWL to illustrate this area on the graph. Drag the points to move or resize. and the efficient quantity is
A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?
Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
Wheat is produced in a perfectly competitive market. Market demand for wheat increases. This will cause the individual wheat farmer's marqinal revenue to maximizing level of output to and their profit- O a. decrease; increase O b. decrease; decrease O c. increase; increase d. increase: decrease
.A fisher sells salmon in a perfectly competitive market and faces a price of $5 per kg at possible weekly outputs of between O and 5000 kg. a. What is the fişher's marginal revenue in this output range? b. Because the fisher operates in a perfectly competitive market, how are marginal revenue and price related? C. Draw the fisher's marginal revenue curve on a graph. Plot only the endpoints at O and 5000 kg to draw the curve.
What is the marginal revenue gained when one more unit of output is sold? The price at which the extra unit is sold but adds the rise in revenue of the previous units that could have been sold at a higher price O a. O b. The price of the unit of output sold minus the production cost of that unit The price of the unit of output sold O c. Od. The price at which the extra unit is sold but subtracts the drop in revenue of the previous units that could have been sold at a higher price