Question

In: Economics

If you were to graph the curves of MC and ATC (you don’t have to), what...

If you were to graph the curves of MC and ATC (you don’t have to), what would be significant about the point of intersection of the MC and ATC curves?

Solutions

Expert Solution


Related Solutions

Use the ATC, MC, MR, Demand Curves ONLY. Explain each graph. Illustrate graphically a monopolist at...
Use the ATC, MC, MR, Demand Curves ONLY. Explain each graph. Illustrate graphically a monopolist at a loss. (Label) Illustrate graphically a monopolistic competition at a profit.
Using a marginal cost (MC), average variable costs (AVC), and average total costs (ATC) curves, graph...
Using a marginal cost (MC), average variable costs (AVC), and average total costs (ATC) curves, graph the break-even point and shutdown point for a firm. Explain why these two points are key in an entrepreneur’s decision making in the short-run or long-run.
1- Draw the short-run ATC, AVC and MC curves for a business.
1- Draw the short-run ATC, AVC and MC curves for a business. Show the supply curve with the prices at which a firm would breakeven and shutdown. Label everything.2- Show the price and quantity for a perfectly competitive firm that is making a loss in the short run. Also make sure to graph the marginal revenue, marginal, average total and average variable cost curves.
Graph MC, AVC, and ATC for a firm with the costs indicated by the table to...
Graph MC, AVC, and ATC for a firm with the costs indicated by the table to the right. Assuming Perfect Competition, what will happen in the short run if price is $12? What will happen in the long run? What will happen in the short run if price is $25? What will happen in the long run? What is the Long Run equilibrium price? indicated by the table to the right. Assuming Perfect Competition, what will happen in the short...
The graph below shows a particular firm's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves
The graph below shows a particular firm's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves, where the market is competitive. Suppose that a new management team is brought in and that this team is initially less concerned about maximizing profits than it is simply about making a profit. What range of production quantities will allow the firm to operate while earning a profit?Give your answer by dragging the Qmin to Qmax lines into their correct positions. The output will...
explain what happens to AFC, AVC, ATC, and MC curves in the following two situations I....
explain what happens to AFC, AVC, ATC, and MC curves in the following two situations I. fixed cost increases ii. variable cost increases.
Question 7: Using the Demand, MC, MR, and ATC curves as well as the appropriate labels,...
Question 7: Using the Demand, MC, MR, and ATC curves as well as the appropriate labels, show the firm’s optimal choice of output and price in monopolistic competition and illustrate a situation in which the firm is earning positive economic profits in the short-run. On another diagram, show the long-run equilibrium for the individual firm in monopolistic competition using only the Demand, MC, MR, and ATC curves as well as the appropriate labels.
Complete the columns for TR, MR, TFC, TVC, TC, ATC, AVC, and MC, as well as those for (TC), TVC, & TFC. Draw the curves for Demand (Price Vs. Quantity), MR (Marginal Revenue), ATC, AVC, and MC
QPTrMrTFCTVCTCMCATCAVCT(π)0$19.00$4.001$18.0042$17.0023$16.0014$15.0025$14.0036$13.0047$12.0058$11.0069$10.007                 Complete the columns for TR, MR, TFC, TVC, TC, ATC, AVC, and MC, as well as those for (TC), TVC, & TFC. Draw the curves for Demand (Price Vs. Quantity), MR (Marginal Revenue), ATC, AVC, and MC, all in one diagram. Also draw the Total Revenue (TR), Total Cost (TC), TVC, andTFC in a second diagram right below the first one.Determine, in order to maximize profit. How many units this firm should produce and explain.Demonstrate the geometric areas (rectangles) of Total...
Consider the competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry.
 6. Deriving the short-run supply curve Consider the competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. For each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between...
Consider the competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry.
 6. Deriving the short-run supply curve Consider the competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. For each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT