Question

In: Economics

The following table shows information for Hayek’s Maps, a perfectly competitive firm. a. Complete the MC...

The following table shows information for Hayek’s Maps, a perfectly competitive firm.

a. Complete the MC column in the table:

Output TC MC

0 $ 100 /

1 200

2 285

3 355

4 445

5 565

6 715

7 895

8 1,105

b. Given the prices in table below, fill in columns 2, 3, 4 and 5 of table. (Assume that partial units cannot be produced.) If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.

(1) Price (2) Output (3)

Total Revenue (4)

Total Cost (5) Profit/Loss (6)

Total Supply (7)

Total Demand

$ 89 800

98 750

107 700

116 650

125 600

134 550

c. Suppose there are 120 firms identical to this one. Show the total supply in column 6 of table above.

d. If the market demand is as shown in column 7 of table , what will be the equilibrium price? What quantity will be traded in the market?

Equilibrium price: $

Quantity traded:

e. At equilibrium, what quantity will this firm produce? What will be its profit or loss?

Quantity: ; : $

f. As a result of your answer in (e), will firms enter or leave this industry?

Expert Solution

Rahul Sunny answered 2 years ago

Complete the table and answer the following questions. The price of this perfectly competitive firm is...

Complete the table and answer the following questions. The price of this perfectly competitive firm is $300. QTY FC VC TC AFC AVC ATC MC MR 0 700 1 650 2 700 3 760 4 840 5 950 6 1090 7 1270 8 1500 9 1790 10 2150 Should this firm produce? Explain If so, how many units should it produce? What is the economic profit or economic loss?

The table shows total cost and total revenue information for a perfectly (or purely) competitive firm....

The table shows total cost and total revenue information for a perfectly (or purely) competitive firm. Quantity Total cost Total revenue 00 500500 00 11 600600 135135 22 710710 270270 33 830830 405405 44 960960 540540 55 11001100 675675 66 12501250 810810 77 14101410 945945 88 15801580 10801080 99 17601760 12151215 1010 19501950 13501350 Firms earning a loss will sometimes shut down in the short run. What quantity will the firm produce if it shuts down in the short run?...

For a perfectly competitive firm, if MC = minimum ATC, then:

The table below shows cost and revenue information for Choco Lovers, a perfectly competitive firm producing...

The table below shows cost and revenue information for Choco Lovers, a perfectly competitive firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Instructions: Round your answers to 2 decimal places. Choco Lovers Costs and Revenue Quantity TC ATC MC of Gift Boxes ($) ($) ($) 20 135 6.75 6 25 162.5 6.5 30 6.42 6 35 227.5 7 40 272.5 6.81 9 45 327.5 7.28 11 Instructions: Enter your answers below as whole...

Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive firm, MR=MC at...

Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive firm, MR=MC at 1200 units of output. At 1200 units, atc is $23 and avc is $18. The best policy for this firm is to ___ in the short run. Also, this firm earns ___ of ___ if it produces and sells 1200 units. a.shut down, losses, 15,600 b.shut down, losses, 9,600 c.continue to produce, losses, $15,600 d.continue to produce, profits, $15,600 Ultimately, market supply curves are...

1. Complete the table given showing the costs of a perfectly competitive firm.

1. Complete the table given showing the costs of a perfectly competitive firm.OutputTotal CostTotal Fixed CostTotal Variable CostAverage Fixed CostAverage Variable CostAverage Total CostMarginal cost1003601602000.33000.834001.3050046060037001.680022402. If the market price is Rs 3,what will be the profit/ loss of the firm?

The following table shows the short-run cost data of a perfectly competitive firm. Assume that output...

The following table shows the short-run cost data of a perfectly competitive firm. Assume that output can only be increased in batches of 100 units. Quantity Total Cost (dollars) Variable Cost (dollars) 0 $1000 $0 100 1360 360 200 1560 560 300 1960 960 400 2760 1760 500 4000 3000 600 5800 4800 a. Explain how a firm chooses quantity to maximise profit in a competitive market. b. What is the firm’s fixed cost? (1 mark) c. Suppose...

12.The table below shows cost data for a firm operating in a perfectly competitive market: Price...

12.The table below shows cost data for a firm operating in a perfectly competitive market: Price ($ per unit) Quantity (units) Total cost ($) 50.00 0 10.00 50.00 1 20.00 50.00 2 27.50 50.00 3 77.50 50.00 4 147.50 50.00 5 250.00 What is the firm’s total revenue when four units are produced? $160 $50 $200 $40 14.If a perfectly competitive firm is earning positive profits, then its average total cost must be higher than the market price. its total...

Draw the following: (a) a perfectly competitive firm that earns profits (b) a perfectly competitive firm...

Draw the following: (a) a perfectly competitive firm that earns profits (b) a perfectly competitive firm that incurs losses, but will continue to operate (c) a perfectly competitive firm that incurs losses and will shut down in the short-run.

Question 1 The table below shows the cost and revenue information of a firm. (a) Complete...

Question 1 The table below shows the cost and revenue information of a firm. (a) Complete the table above. Output (units) Price (RM) Total Cost (RM) Total revenue (RM) Marginal Cost (RM) Marginal Revenue (RM) 0 14 10 1 12 14 2 10 22 3 8 34 4 6 48 5 4 64 6 2 82 (b) Determine the price and output at equilibrium. [6 marks] (c) Calculate the profit or loss at equilibrium. [4 marks] (d) Is this firm...