AVC, ATC, MC 30 20 10 0 1 2 3 8 9 10 11 12 13 14 Output per period The Competitive Industry and Firm Select one: ATC Refer to the graph above to answer this question. What is the value of total revenue at the breakeven price?. A. $100. AVC OB. $40. OC. $210. OD. $280. E. $200.

AVC, ATC, MC 30 20 10 0 1 2 3 8 9 10 11 12 13 14 Output per period The Competitive Industry and Firm Select one: ATC Refer to the graph above to answer this question. What is the value of total revenue at the breakeven price?. A. $100. AVC OB. $40. OC. $210. OD. $280. E. $200.

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 16RQ: How does a perfectly competitive film calculate total revenue?

See similar textbooks

Related questions

Q: Workers can move freely between the sectors and they do so until wages are equal. In this case, the…

A: Efficiency of labor is defined as when laborers increase the production by less quantity of labor.…

Q: 6. Shifts in supply or demand I The following graph shows the market for peanut butter in New York…

A: Market demand curve for a commodity can shift as a result of a change in consumers income, their…

Q: Consider two firms with the following marginal abatement costs (MAC) as a function of émissi (E):…

A: MAC1 = 10 - 2E1MAC2 = 16 - 4E2Both firms cut their emissions to zero

Q: what are her economic profits

A: Economic profits: Economic profits refer to the total profit that a producer earns through an…

Q: Do the Philippines and Filipinos benefit from global economic and political integration? (500 words)

A: The Philippines and Filipinos can benefit from global economic and political integration in a number…

Q: 1. Suppose output (Q) is related to labor (L) and capital (K) in the following nonlinear way: Q =…

A: A mathematical depiction of an association between variables, known as the log-log linear form, uses…

Q: Suppose that the economy is characterized by the following behavioral equations: C = 180+ 0.55YD /=…

A: GDP is the Gross Domestic Product. GDP is the market value of all the goods and services produced in…

Q: You are the lead petroleum engineer for the Advantage Midstream LLC. Please calculate the following…

A: Equivalent annual cost (EAC) is a financial metric used to assess the total cost of an investment or…

Q: The scientific method requires that O a. scientists use test tubes and have clean labs O b.…

A: The scientific method is used in research.Economists use the scientific method to establish economic…

Q: Question 10 Consider the following payoff matrix. A U 1,1 M 2,4 D 3,3 B 3,4 2,5 0,4 M C 2,1 8,1 0,9…

A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…

Q: In the following diagram you are given two technologies, A and B, which can produce 100 metres of…

A: The total cost incurred by a company while using economic resources to generate goods and services…

Q: With the aid of diagrams (where relevant) discuss how each of the following “market mechanisms” work…

A: It can be defined as a form of tax that it imposed by the central authority of the nation on such…

Q: Consider a situation where Ron (R) and Nancy (N) have demands for a private good that can be…

A: Demand is the desire backed by a willingness to pay and the ability to pay by an individual. The…

Q: Bozo is a clown. He wants to start a clowning business where he sends other clowns out to birthday…

A: The marginal product of labor measures the change in the total product due to a change in labor by…

Q: Refer to the figure below. Price f Level P A 7₁ LRAS Y " SRAS, SRAS, AD₂ AD₁ Quantity of Output…

A: Federal, state, and municipal governments spend money on products and services through government…

Q: 20 15 Capital Goods 10 (in millions) 5 4 million capital goods 5 million capital goods 6 million…

A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Q: Eden, a country, produces just two output goods: apples and snakeskin handbags. In 2014 the prices…

A: Now the IS curve indicates the output market.The total output /income in the market is the sum of…

Q: A new printer has an NPV of -$4,194 and an estimated life of 3 years. If the required rate of return…

A: The Equivalent Annual Cash Flow (EAC) is a financial metric used in capital budgeting and investment…

Q: GDP per capita is a widely used measure of economic well-being. Discuss the appropriateness of this…

A: Gross Domestic Product (GDP) refers to a proportion of the all out worth of all goods and services…

Q: Suppose that Canada produces two goods: lumber (y) and fish (x). It has 18 million workers, each of…

A: Maximum amount is that amount which is maximum number of workers produced at maximum rate of…

Q: A monopoly’s inverse demand function is p= 100 - Q + (5A-A2)/Q: where Q is quantity, p is price and…

A: Demand is the desire backed by a willingness to pay and the ability to pay by an individual. The…

Q: On the following graph, use the blue line (circle symbol) to plot Jake's production possibilities…

A: A graph that illustrates the maximum combination of two goods or services that an economy can…

Q: For this question, assume that GDP records the economic activity that takes place on each calendar…

A: National income measures the money value of goods and overall economic activity within a country. It…

Q: Year 2018 2019 2020 (Dollars) EM (Base year 2018, dollars) From 2019 to 2020, nominal GDP The…

A: A summation of countries'final goods and services is known as Gross domestic product.. It measures…

Q: You want to purchase a new car and you are willing to pay R500 000. If you can invest at 14% per…

A: Present value= R350 000Future value=R500 000Interest rate=4%n=?

Q: Suppose that your production process is characterized by the production function x = f(e) = 100 In…

A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…

Q: This table shows the elements for constructing the consumer price index. Assume that the base year…

A: Macroeconomic factors are critical for the functioning of the economy. The factors revolves around…

Q: You are employed at an Economics consulting firm called Eco Xcel. You have been approached by a…

A: In an effort to counteract growing inflation, the SARB has increased interest rates. This is the…

Q: If your revenue during the first year of business is $48,000, and you incurred $4,000 in expenses…

A: It can be defined as the profit taking into account both the explicit costs of a business and the…

Q: Identify whether or not each of the following scenarios describes a competitive market, along with…

A: A competitive market is a marketplace where numerous sellers offer nearly identical products or…

Q: Material Requirements Plan (MRP) is an input to- O a. Inventory Plan O b. Master Production Schedule…

A: The master production schedule (MPS) is a plan for the production of finished goods. It takes into…

Q: What is the Importance of Credit Rating to a country like Zambia?

A: Credit rating agencies, often known as credit rating institutes, assess and measure a person, a…

Q: What parameters do these institutions use in coming up with ratings for global reports? Moody's,…

A: Credit rating institutes, like Moody's and S&P, evaluate entities' financial health and assign…

Q: Using the previous graph, you can determine that Charles is willing to supply his 6th weekly slice…

A: Using the previous graph, you can determine that Charles is willing to supply his 6th weekly slice…

Q: . Assume that the South African economy is at equilibrium where output is equal to the natural level…

A: The IC-LM-PC model (also known as the IS-LM-PC model) is a macroeconomic framework used to analyze…

Q: You own several copiers that are currently valued at $11,000, combined. Annual operating and…

A: To determine whether you should replace your existing equipment with the new equipment, we need to…

Q: If input prices change at exactly the same rate as output prices, the aggregate supply curve will be…

A: Aggregate supply highlights the overall supply of goods and services that are produced within the…

Q: You are employed at an Economics consulting firm called Eco Xcel. You have been approached by a…

A: Monetary policy refers to the management of a country's money supply and interest rates by its…

Q: Assume the supply curve of the typical taxi cab driver in Chicago is P = 4 + 2Q. Suppose the market…

A: It can be defined as a tool that shows the difference between what sellers desire to accept for a…

Q: When the Wright brothers designed their aircraft, they built a wind tunnel to model the aerodynamics…

A: An endogenous model is defined as the factors affecting internally the model. For example, if we…

Q: Company B is selling a product with a non-linear price function. The price function is given by p =…

A: ***Since the student has posted multiple subparts, so the expert is required to solve only the first…

Q: Suppose that quantum computers, which are much faster than computers today, are invented and that…

A: The demand for skilled and unskilled labor is determined by the productivity of labor and the price…

Q: Use calculus to determine the effect of a small increase in hourly wages on the equilibrium price (P

A: Demand refers to the demand for goods and services by consumers and hence paying money to buy them.…

Q: 8) List the assumptions of the PPC model when the economy is on the frontier.

A: A Production Possibility Frontier (PPF) shows the broadest range of products that a country can…

Q: If a country's currency depreciates, what would be the effect on the Bal. Select one: O a. It…

A: Balance of payment signifies the difference between the overall value that is being imported against…

Q: The graph refers to a large increase in gasoline prices. Price Level P₂ P₁ ==== Which of the…

A: Inflation is defined as the increase in the value and prices of goods and services in a country that…

Q: Consider a pure-exchange economy of two individuals (A and B) and two goods (X and Y). Individual A…

A: Given,utility functions:What will be the set of Pareto optimal allocations in this economy?

Q: Agreement and disagreement among economists Suppose that Larry, an economist from a college in…

A: A budget deficit happens when a government spends more than its revenues in a given fiscal year. In…

Q: Exhibit: Output, Consumption, and Investment y B A -f(k) sf (k) k In this graph, when the capital…

A: The steady-state consumption is given as output minus the investment level. Consumption at a steady…

Q: Explain the concept of scarcity in general and further indicate how this is critical to the success…

A: Scarcity defined as a condition where the resources are limited but the wants associated with those…

Question

AVC, ATC, MC
30
20
10
0
1 2 3
8 9 10 11 12 13 14
Output per period
The Competitive Industry and Firm
Select one:
ATC
Refer to the graph above to answer this question. What is the value of total revenue at the breakeven price?.
A. $100.
AVC
OB. $40.
OC. $210.
OD. $280.
E. $200.

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Explaining competitive industry

VIEW

Step 2: Computing total revenue

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

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

What two lines on a cost curve diagram intersect at the zero-profit point?
What two lines on a cost curve diagram intersect at the shutdown point?
Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
Explain in words why a profit-maximizing film will not choose to produce at a quantity where marginal cost exceeds marginal revenue.
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
How does a perfectly competitive film calculate total revenue?
Don'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?
lackboard.com -Fall_2021 Remaining Time: 1 hour, 39 minutes, 21 seconds. v Question Completion Status: AMoving to the next question prevents changes to this answer. Question 1 TC 500 TR 400 300 200 100 Q1 Q2 Q3 Quantity Consider the above figure. If output increases from Q 2 to Q 3, the firm increases its profit. reduces its marginal revenue. decreases its profit. increases its marginal revenue. A Moving to the next question prevents changes to this answer. stv 12 MacBook Air DII F9 000 000 FO 80 F7 F4 F9 F2 & 2 Total revenue and total cost (dollars)
3. The components of marginal revenue Asim's HockNLadder is the only company selling fire engines in the fictional country of Alexandrina. Asim initially produced seven trucks, but then decided to increase production to eight trucks. The following graph gives the demand curve faced by Asim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Asim must lower the price from $100,000 to $50,000 per truck. Notice that Asim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial seven engines because they are all sold at the lower price. use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial seven engines by selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. PRICE (Thousands of dollars per fire engine) 250 221 200 179 150 125…
Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
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 answer
Price and cost $4.00 3.20 2.40 1.60 0 Questraq; not sugamon Isnigiem sunsven lang jam neris MC ITAALS 25006 DMC Sorberg in ATC AVC HONDE SOM= 15152 850 1,700 MR 2,550 D Quantity a. If Elijah produces at the profit-maximizing level of output, how much is his total revenue? How much is his total cost? Briefly explain your calculations. a. How much economic profit is Elijah earning? Briefly explain your calculation.