Please see the attached17 Figure 8.13 refers to a perfectly competitive firm.FIGURE 8.13$100MCB0AC70AvC2 3 4 5 6 7 8Quantity per period9 10 11 12 13 14Refer to Figure 8.13 to answer this question. What is the value of the break-even price?Select one:O a. Cannot be determined from the information.O b. $20.O c. $40.O d. $50.O e. $10.ATC, AVC, MC

Figure 8.13 refers to a perfectly competitive firm. FIGURE 8.13 $100 90 80 70 20 10 1 2 3 4 10 11 12 13 14 Quantity per perioed Refer to Figure 8.13 to answer this question. What is the value of the break-even price? Select one: O a. Cannot be determined from the information. O b. $20. O C. $40. O d. $50. O e. $10.

Figure 8.13 refers to a perfectly competitive firm. FIGURE 8.13 $100 90 80 70 20 10 1 2 3 4 10 11 12 13 14 Quantity per perioed Refer to Figure 8.13 to answer this question. What is the value of the break-even price? Select one: O a. Cannot be determined from the information. O b. $20. O C. $40. O d. $50. O e. $10.

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 7SCQ: If new technology in a perfectly competitive market brings about a substantial reduction in costs of...

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What are the four basic assumptions of perfect competition? Explain in words what they imply for a perfectly competitive firm.
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?
Briefly explain the reason for the shape of a marginal revenue curve for a perfectly competitive firm.
A strawberry farmer, operating ih a perfectly competitive market, is currently producing 99 packs of strawberries. The market price for a pack of strawberries is $6 a pack. The marginal cost of producing one more pack for the farmer is $5. What is the marginal revenue the farmer will receive from producing his 100th pack of strawberries? (Hint: If you aren't sure what marginal revenue means, look it up before choosing an answer) O $0.06 O $6 O $1 O $100
7. Assume that a purely competitive firm has the schedule of average and marginal costs given in the table below. Complete the short-run supply schedule and profits or losses for this firm. Outpu AFC AVC ATC MC t 0 1 2 3 4 5 6 7 8 9 10 P600 P200 P800 P200 300 150 450 100 200 140 340 120 150 145 295 160 120 160 280 220 100 180 280 280 86 205 291 360 76 232 314 460 66 276 342 580 60 320 380 720 Quantity Price supplied (-) P P580 460 360 280 220 160 Profit (+) or loss 120
$1q MC 15 AC 11 10 AVC 40 q The above figure shows the cost curves for a competitive firm. If the firm is to earn economic profit, price must exceed O A. $5 ОВ. $0. OC. $10. 20 étv MacBook Air S0 DII DD F3 F4 F5 F9 23 2$ & * 3 4 5 6 7 8 { [ E R Y P D F G H J K L > с V N command option レレ .. .- V * 0O B
The average variable cost (AVC) 1 and average total cost (ATC) of a price taker firm are provided below. According to this table, if the marginal revenue (MR) is $95, what decision should this firm take in the short-run? Quantity Average Variable Cost Averge Total Cosm 100 25 100 20 150 20 150 23 100 15 100 17 100 19 15030 150 19 150.25 11 O Exit the market Enter in to the market The firm will go for a temporary shutdown Continue production
Question 8 Use the cost chart: Assuming this firm competes in a perfectly competitive market. What is the profit (or loss, loss is a negative) when the price is $1.60. Cost Chart Q 0 5 10 15 20 25 30 35 40 Typed answer will be automatically saved. X₂ X² Ω· FC 10 10 10 10 10 10 10 10 10 Write your response here... VC Twos 0 3 7 12 18 25 33 42 52 TC 10 13 17 225755 28 35 43 62 AFC 0.67 0.29 AVC 0.60 0.70 0.90 1.00 1.10 ATC 2.60 1.47 1.43 1.49 MC 1.00 1.80 □
QUESTION 1 DA MC ATC AVC Quantity Observe the graph above. Based on the original price being set at P1, what assumptions would you make about the company's condition and what might happen O The company is profitable and making a very good profit O Company is barely at the break-even point or even below that point because the price of the product is set to cover just its variable costs which means the company would not survive long if the price of P1 remains the same O Company is making small profits in the short run O None of the above.
Refer to the above graph for a purely competitive firm in the short run. What minimum output level should the firm produce just for it to break even? TC TR 9,800 5,600 2,100 300 800 1,400 Output (Q) Select one: O A. 800 and 300 O B. 300 only C. 800 and 1,400 D. 800 %24
$1q1 , MC 15 AC 11 10 AVC 40 The above figure shows the cost curves for a competitive firm. If the market price is $15 per unit, the firm will earn profits of O A. $4. O B. $160. OC. $40. 60468 20 tv MacBook Air 80 DII F3 F4 F6 F10 2# $ & 3 4 5 6 8 9 E T Y P G H J K C V command .. .- * 00 B R
Refer to Figure 8.1. The firm earns zero profit at what output? Consider the following diagram where a perfectly competitive firm faces a price of $40. O A. O. B. 34 and 79. OC. 54, O D. 67. E. 60. 44 40 31 30 20 10 4 10 20 30 40 50 34 Figure 8.1 60 70 67 79 MC AC AVC D 80 1 OUTPUT