The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a perfectly competitive firm that produces novelty ear buds in a competitive market. The market price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 10 3.5 15 3 20 2.44 2.86 25 3.56 3 30 4.02 3.17 35 5.48 3.5 40 5.98 3.81 45 8.49 4.33
Q: You are self-employed profit maximization consultant, specializing in different market structures,…
A: Perfect competition is when the market functions in such a way that a large number of producers and…
Q: Suppose an avocado farm has cost: C = 0.002q3 + 22q + 750 (where q is measured in bushels).…
A: Given an avocado farm: C = 0.002q3 + 22q + 750 .... (1) Marginal cost: MC=0.006q2+22 ... (1)…
Q: A marginal cost pricing rule sets marginal cost equal to price O minimum average variable cost…
A: In economics, marginal-cost pricing is the practice of adjusting a product's price to equal the…
Q: The market for fertilizer is perfectly competitive. Firms in the market are producing output but are…
A: A market or industry in which end numbers of firms compete with similar characterized products is…
Q: The table below shows cost data for producing different amounts of refrigerators. Use the given…
A:
Q: he following problem traces the relationship between firm decisions, market supply, and market…
A: The following table gives us the various cost production of different unit of outputs.We are given…
Q: A perfectly competitive frim has the total cost curve is given by:TC = 270+13q+0.4q2. What is the…
A: Variable cost is that cost component, which increases (decreases) with increase (decrease) in…
Q: Complete the following table by computing the total profit (the research lab's economic profit and…
A: Pollution refers to a negative externality as it defines as the introduction of harmful contaminants…
Q: The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a…
A: There is a perfectly competitive firm that produces earbuds in a competitive market. A…
Q: Table: Variable Costs for Lots Variable Costs Quantity of Lots so 200 300 10 20 30 500 40 750 50 60…
A: Quantity should be below fixed cost 1000.
Q: Total variable Quantity (dozens of sea shells per day) cost (dollars) 200 60.00 201 61.00 202 62.50…
A: The entry of new firms' different new item market passage practices, presents below two types of…
Q: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 +…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In a particular market, there are 500 fırms. Each firm has a marginal cost of $30 when it produces…
A: Answer: Correct option: C (Quantity = 100,000 and Price = $30) Explanation: Each firm is producing…
Q: A juice producing company operates in a perfectly competitive market and is therefore a price taker.…
A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…
Q: The local restaurant owner prepares and sells pizza everyday. The equilibrium price of this pizza is…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Answer the question on the basis of the following demand and cost data for a specific firm. Demand…
A: Profit maximizing level of output for a firm is at the point where marginal revenue (MR) equals…
Q: Total cost: TC=50 + 1/2q^2 Marginal cost: MC=q where q is an individual firm's quantity produced The…
A: Variable costs vary based on the amount of output produced. Variable costs may include labor,…
Q: Bavarian Crystal Works designs and produces crystal wine decanters for export to international…
A: The equilibrium price and equilibrium quantity of a good sold in the market are determined by the…
Q: VannasBrew produces raspberry lemonade and sells it competitively. To secure its activity,…
A: Since the question you have posted consists of multiple parts, we will answer the first two parts…
Q: Alpha is a price taking firm. At Its currant output level of 100 widgets. Alpha's total revenue is…
A: A price taking firm is one that operates its business in the competitive markets, such that a…
Q: Table) Based on the table, what is the average total product when John's Salsa Company hires three…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Consider the market for solar power. Assume the market is perfectly competitive and…
A: In a market, the imposition of tax on related goods will have a significant impact on the demand and…
Q: Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x…
A: Given information P= 90cent =$.9 C=50+.10X+.001X2
Q: There are 80 firms of type A and 60 firms of type B in a perfectly competitive market. On one hand,…
A: A perfectly competitive market is one in which all businesses sell the same product and where…
Q: Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The…
A: Given, the market for tilapia, there are two producers. a) At market price, P = $2.50, Ripple rock…
Q: Peg repairs transmissions. Her fixed costs are $300 a month and it costs her $24 of labor to repair…
A: A firm maximises profit at the level of output where marginal revenue (MR) equals marginal cost…
Q: revenue (MR). Marginal revenue is High Price the additional revenue received from selling one more…
A: Marginal revenue= (change in total revenue / change in quantity demanded)
Q: Quantity of Output Total Cost 0 $12 1 $14 2 $18 3 $24 4 $32 5 $42 6 $54 7 $68 The table above shows…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: lls CrunchyCrunch for a price of $10 with a marginal cost of $6. Firm 2 sells FibryFibre for a price…
A: Marginal cost: It refers to the cost that changes with a change in output. The marginal cost of the…
Q: The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a…
A: The marginal-cost is the cost incurred on the production of an additional-unit of output. And the…
Q: Suppose that the market for black leather purses is a competitive market. The following graph shows…
A: If a firm is perfectly competitive, it can sell as much as it wants as long as it accepts the…
Q: Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two…
A: A Perfectly competitive market firm has only one major decision to make which is what quantity to…
Q: The figure deplcts the demand curve for Beautiful Cars, and the marginal cost and Isoprofit curves…
A: Demand curve is a graphic representation of the relationship between price of the product and the…
Q: Consider the competitive market for titanium. Assume that, regardless of how many firms are in the…
A: Answer: The supply curve of a perfectly competitive firm: the short-run supply curve of a perfectly…
Q: A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What…
A: Perfect competition is a market structure featuring more number of sellers and buyers in the market,…
Q: Sarge's Lawn Mowing Service is a small business in a perfectly competitive market. The prevailing…
A: In the mentioned question we have been asked about the perfectly competitive market and ask about…
Q: Your college newspaper, The Collegiate Investigator, sells for 90¢ per copy. The cost of producing x…
A: C (x) = 10 + 0.10x +0.001x2 Price = 90 cents Total Revenue (TR) = Price * Quantity TR = 0.90 x
Q: Question 1 Include correctly labeled diagrams, if useful or required, in explaining your answers. A…
A: Since you have posted multiple-part questions, we will solve the first three parts for you and if…
Q: A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost…
A: "A perfectly competitive firm is a firm which is price taker. In perfectly competitive market there…
Q: Complete the following table by computing the total profit (the research lab's economic profit and…
A: Given, the researcher could uses different method of production that involve recycling water, the…
Q: Suppose that each firm in a competitive pizza market has the following identical cost: Total cost:…
A: Given Total cost function of each firm TC=25+1.5Q2 ... (1) Demand function Q=120-P or…
Q: *** Babolat, Sony, and other smart racket producers are attempting to maximize economic profit…
A: Under monopolistic competition, there are a large number of buyers and products are differentiated.…
Q: After serving as President of the United States for eight years, Dena has retired from politics and…
A: Dena is being able to cover her variable costs when she produces 8 units infact she is earing…
Q: The following diagrams show the market for a good, as well as the cost curves for an individual firm…
A: Equilibrium is achieved at a point where demand curve intersects the supply curve. Breakeven occurs…
Q: Suppose the market for shoe repair is a perfectly competitive market. The cost function for John's…
A: A seller functioning in a competitive market condition enjoys the highest amount of profits by…
Q: Suppose that each firm in a competitive industry has the following costs: Totalcost:TC=50+1/2q2…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 +…
A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…
Q: Suppose a firm can sell one unit of product for $50, two units for $45 each, three units for $40…
A: Total revenue is revenue earned by seller by selling the quantity at particular price , so TR=P x Q…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 25 2.20 30 2.02 2.17 35 2.45 2.21 40 3.57 2.38 45 4.00 2.56 50 5.46 2.85 55 5.93 3.13 60 8.53 3.58 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds?The figure shows a bakery's marginal and average cost curves, and its isoprofit curves. The bakery is a price-taker in a large bread market. Suppose the current market price is P₁. Based on this information, which of the following statements is correct? Price, Cost €6 (5 20 40 60 80 Quantity MC hoprofits AC 100 120 140 160 180 number of loaves Select one or more: a. The bakery would be better off raising its price up to its AC level. O b. The bakery would be minimising its loss at A. Oc. If the bakery is not yet in the market then it would not enter the market. d. If the bakery is already in the market, then it would always immediately exit the market because it is making a loss.A profit-maximising firm in a competitive market is currently producing 1,000units 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?
- |1.6.1 A company manufactures and sells x dellphones per week. The weekly price-demand and cost equations are given below. p= 400 - 0.5x and C(x) = 20,000 + 140x (A) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly revenue? What is the maximum weekly revenue? The company should produce (Round to the nearest cent as needed.) phones each week at a price of $ The maximum weekly revenue is $ (Round to the nearest cent as needed.) (B) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly profit? What is the maximum weekly profit? The company should produce (Round to the nearest cent as needed.) phones each week at a price of $ The maximum weekly profit is $ (Round to the nearest cent as needed.)The table below shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. $0 (it breaks even) loss of $1,000 Quantity profit of $440 loss of $440 100 200 300 400 500 600 Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760 4,000 5,800 Variable Cost (dollars) $0 360 If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss? 560 960 1,760 3,000 4,800The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC АТС of Ear Buds ($) ($) 9.00 - 10 2.00 5.50 15 2.44 4.48 20 3.56 4.25 25 4.50 4.30 30 5.02 4.42 35 5.96 4.64 40 8.56 5.13 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$ d. Now assume the market price is $5.50 per pair, and Buddies produces the…
- A profit - maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $ 200. Complete the following table by indicating the firm's profit, marginal cost, and average variable cost. Profit Marginal Cost Average Variable Cost (Dollars) (Dollars) (Dollars) The efficient scale of the firm must beless than 100 units.Given the cost data in the table below, the firm will shut down and produce zero output if the market price falls below in which case the firm's loss is Average Total Variable Total Cost, Marginal Cost, Average Total Output, Q Variable Cost, Cost, TVCIQ) TC(Q) MC(Q) Cost, ATC(Q) AVCIQ) 80 $9.813.33 $11,813.33 $48.00 $122.67 $147.67 90 $10,260.00 $12,260.00 $42.00 $114.00 $136.22 100 $10,666.67 $12,666.67 $40.00 $106.67 $126.67 110 $11,073.33 $13,073.33 $42.00 $100.67 $118.85 120 $11,520.00 $13,520.00 $48.00 $96.00 $112.67 130 $12,046.67 $14,046.67 $58.00 $92.67 $108.05 140 $12,693.33 $14,693.33 $72.00 $90.67 $104.95 150 $13,500.00 $15,500.00 $90.00 $90.00 $103.33 160 $14,506.67 $16.506.67 $112.00 $90.67 $103.17 170 $15,753.33 $17,753.33 $138.00 $92.67 $104.43 180 $17,280.00 $19,280.00 $168.00 $96.00 $107.11 190 $19,126.67 $21,126.67 $202.00 $100.67 $111.19 200 $21,333.33 $23,333.33 $240.00 $106.67 $116.67 O $40; $12,666.67. O $90; $2,000. O $103.17: $2.000. $90; $0. O $90; $29,000. O…A manufacturer of electric switches in a competitive industry has a fixedmonthly cost of $50,000, total monthly variable cost $100,000, and marginalcost of $5. What is the profit if the monthly production is 100,000 units?Assuming that prices of switches fluctuate from month to month, what is the lowest price the manufacturer can accept in order to stay in business in the long run and in the short run. Will those prices be the same? Show detail work
- A local company is planning to manufacture and market a four-slice toaster. For this toaster, the research department’s estimates are aweekly demand of 300 toasters at a price of $25 per toaster and a weekly demand of 400 toasters at a price of $20. The financial department’s estimates are fixed weekly costs of$5,000 and variable costs of $5 per toaster. a) Assume that the relationship between price ? and demand ? is linear. Use the research department’s estimates to express ? as a function of ? and determine the domain of the function. b) Using your knowledge from Finite Math, determine the Revenue function in terms of ?. c) Determine the Marginal Revenue at 2 different production levels for example 250 and 500 units. Interpret these results. (HINT: Consider what a positive or negative first derivative implies) d) Assume that the cost function is linear. Use the financial department’s estimates to express the cost function interms of ?. e) Determinethe Marginal costand interpret the…Price and cost (dollars) 70 60 50 40 30 20 10 0 MC₁ 50 Quantity MC₂ 100 Demand 150 The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC₁ and MC2 are the marginal cost curves for those two plants. How should the firm allocate total output between the two plants in order to maximize profit?The table gives some of the costs of the Delicious Pie Company. The marginal cost per pie of increasing the output of pies from 100 to 200 is Total variable cost (dollars) Output (pies) 0 100 200 300 400 $8.00 $600 $6.00 $5.00 0 400 1,000 1,800 2,800 Total cost (dollars) 300 700 1300 2100 3100 ?