The table above shows some of the costs for a perfectly competitive firm. The firm will produce 9 units of output if the price per unit is

Quantity	Total fixed cost, TFC (dollars)	Total variable cost, TVC (dollars)
0	500	0
1	500	100
2	500	180
3	500	220
4	500	300
5	500	390
6	500	500
7	500	640
8	500	800
9	500	1000
10	500	1250

A) $1750.

B) $200.

C) $300.

D) $500.

Solutions

Expert Solution

the costs for a perfectly competitive firm produces at MC=P
MC of n the unit=(VC of n units -VC of p units )/(n-p)...............n>p
MC(9)=(1000-800)/(9-8)
=200 units
the price should be equal to $200
option B

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

The table above shows some of the costs for a perfectly competitive firm. If the price is $160 per unit, how many units of output will the firm produce?

QuantityTotal fixed cost, TFC(dollars)Total variable cost, TVC(dollars)05000150010025001803500220450030055003906500500750064085008009500100010500125011. The table above shows some of the costs for a perfectly competitive firm. If the price is $160 per unit, how many units of output will the firm produce?A) 8B) 9C) 10D) more than 10

The above table gives the quantity of output and the total cost for a perfectly competitive firm that can sell all of its output at $9 per unit

Quantity(units)Total cost(dollars)0316212321433549The above table gives the quantity of output and the total cost for a perfectly competitive firm that can sell all of its output at $9 per unita) Find the profit maximizing level of output for this firm.(Show your work and explain). (3 points) (world limit: 100)b) How much economic profit is the firm making?(Show your work and explain) (3 points) (world limit: 100)

A firm in a perfectly competitive market will produce no output in the short run if the price is below $20 but will produce if the price is above $20.

A firm in a perfectly competitive market will produce no output in the short run if the price is below $20 but will produce if the price is above $20. The smallest quantity they will produce in the short run is 6. Firms will earn 0 economic profit if the price is $447.5 and its profit maximizing quantity is 21 at that price. The firm’s fixed cost is $6615. Assume the good can be produced in continuous quantities.Draw a picture...

The following table shows the costs that a firm faces in a perfect competitive market: Output...

The following table shows the costs that a firm faces in a perfect competitive market: Output Fixed Cost Variable Cost Total Cost Average Total Cost Marginal Cost 0 0 1 40 2 100 3 170 4 250 5 360 6 580 7 920 a. Taking into account that the firm has a fixed cost of $200, complete the table. (20 points) b. If the market price is $340, what is the level of output that the firm should produce in order to...

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...

Suppose that a perfectly competitive firm faces a market price of $5 per unit, and at...

Suppose that a perfectly competitive firm faces a market price of $5 per unit, and at this price, the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output level of 1,500 units. If the firm produces 1,500 units, its average variable costs equal $5.50 per unit, and its average fixed costs equal $0.50 per unit. What is the firm's profit-maximizing (or loss-minimizing) output level? nothing. (Enter your response as a whole number long dash—...

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...

A competitive firm sells its output for $20 per unit. When the firm produces 200 units...

A competitive firm sells its output for $20 per unit. When the firm produces 200 units of output, average variable cost is $16, marginal cost is $18, and average total cost is $23. (4 points) What is the firm’s total revenue, total cost, and profit at the 200units of production? What is the firm’s fixed cost for 200 units? Compare the firm’s profit or loss at 200 units of output to if the firm would shut down. Does it make...

1) If a price that a perfectly competitive firm is able to get is above its...

1) If a price that a perfectly competitive firm is able to get is above its average variable cost but below its average total cost then a. The firm will suffer economic losses and should shut down immediately b. The firm will be able to earn economic profit as soon as it can increase the size of its factory c. The firm will suffer economic losses but should continue to operate d. None of the above 2) In the short...

1) If a price that a perfectly competitive firm is able to get is above its...

Subjects