Question
In: Economics
ABLE #1 represents data for a perfectly competitive firm (assume labor drives the variable costs). Assume...
ABLE #1 represents data for a perfectly competitive firm (assume labor drives the variable costs). Assume the product sells for
$75.00 (and filling out the table with the correct answers for 10 points):
|
Laborers |
Quantity |
TFC |
TVC |
TC |
ATC |
AVC |
AFC |
MC |
MR |
TR |
Total Econ Profit |
|
1 |
5 |
||||||||||
|
2 |
12 |
||||||||||
|
3 |
21 |
||||||||||
|
4 |
31 |
||||||||||
|
5 |
40 |
$12.50 |
|||||||||
|
6 |
48 |
||||||||||
|
7 |
54 |
$3,150.00 |
|||||||||
|
8 |
57 |
a. On the same sheet of paper you are submitting to the Week Eight Big Problem PART TWO Dropbox containing your name and a completed TABLE #1, graph each of the average total cost, average variable cost, and marginal cost curves (13 points), and highlight this firm’s supply curve (2 points) and label the two points on the supply curve we know with absolute certainty (4 points). If the price of the output in TABLE #1 is $75.00 per unit, add this information to your graph (3 points). Make sure you label all relevant components.
Solutions
Expert Solution
The filled table is given below. Formula view is given after the table for better understanding. Explanation is after that.
| Laborers | Quantity | TFC | TVC | TC | ATC | AVC | AFC | MC | MR | TR | Total Econ profit |
| 1 | 5 | 500 | 450 | 950 | 190 | 90 | 100 | 950 | 375 | 375 | -575 |
| 2 | 12 | 500 | 900 | 1400 | 116.67 | 75.00 | 41.67 | 450 | 525 | 900 | -500 |
| 3 | 21 | 500 | 1350 | 1850 | 88.10 | 64.29 | 23.81 | 450 | 675 | 1575 | -275 |
| 4 | 31 | 500 | 1800 | 2300 | 74.19 | 58.06 | 16.13 | 450 | 750 | 2325 | 25 |
| 5 | 40 | 500 | 2250 | 2750 | 68.75 | 56.25 | 12.50 | 450 | 675 | 3000 | 250 |
| 6 | 48 | 500 | 2700 | 3200 | 66.67 | 56.25 | 10.42 | 450 | 600 | 3600 | 400 |
| 7 | 54 | 500 | 3150 | 3650 | 67.59 | 58.33 | 9.26 | 450 | 450 | 4050 | 400 |
| 8 | 57 | 500 | 3600 | 4100 | 71.93 | 63.16 | 8.77 | 450 | 225 | 4275 | 175 |
AFC of one quantity is given. We just need to multiply that with
the quantity to get the total fixed cost.
TVC of 7 labors is given. So for one labor it is 3150/7. Then we
need to just multiply this with the number of labor
TC is sum of TFC and TVC.
ATC is TC/quantity.
AVC is TVC/quantity
AFC is TFC/quantity
MC is current total cost-previous total cost
MR is Current total revenue-previous total revenue
TR is 75*quantity
Second part is not clear. Please post it separately with clear instructions. Thank you.
Rahul Sunny answered 1 year agoRelated Solutions
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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...
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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
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d. None of the above
2) In the short...
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False
Assume the cost data is for a perfectly competitive firm: Q AFC AVC ATC MC 1...
Assume the cost data is for a perfectly competitive
firm:
Q
AFC
AVC
ATC
MC
1
60
45
105
45
2
30
42.5
72.5
40
3
20
40
60
35
4
15
37.5
52.5
30
5
12
37
49
35
6
10
37.5
47.5
40
7
8.57
38.57
47.14
45
8
7.5
40.63
48.13
55
9
6.67
43.33
50
65
10
6
46.5
52.5
75
Complete the following table:
P = 56
P = 40
P = 32
Will this...
Assume the cost data is for a perfectly competitive firm: Q AFC AVC ATC MC 1...
Assume the cost data is for a perfectly competitive
firm:
Q
AFC
AVC
ATC
MC
1
60
45
105
45
2
30
42.5
72.5
40
3
20
40
60
35
4
15
37.5
52.5
30
5
12
37
49
35
6
10
37.5
47.5
40
7
8.57
38.57
47.14
45
8
7.5
40.63
48.13
55
9
6.67
43.33
50
65
10
6
46.5
52.5
75
Complete the following table:
P = 56
P = 40
P = 32
Will this...
Assume the following cost data for XYZ industries, a firm that participates in a perfectly competitive...
Assume the following cost data for XYZ industries, a firm that
participates in a perfectly competitive
market. Use this data to answer the following
questions.
Output
Average Fixed
Cost
Average Variable
Cost
Average Total
Cost
Total Cost
Marginal Cost
0
-
-
-
0
0
1
60
45
105
2
30
42.50
72.50
3
20
40
60
4
15
37.50
52.50
5
12
37.00
49
6
10
37.50
47.50
7
8.57
38.57
47.14
8
7.50
40.63
48.13
9
6.67
43.33
50...
Assume the following cost data for XYZ industries, a firm that participates in a perfectly competitive...
Assume the following cost data for XYZ industries, a firm that
participates in a perfectly competitive
market. Use this data to answer the following
questions.
Output
Average Fixed
Cost
Average Variable
Cost
Average Total
Cost
Total Cost
Marginal Cost
0
-
-
-
1
60
45
105
2
30
42.50
72.50
3
20
40
60
4
15
37.50
52.50
5
12
37.00
49
6
10
37.50
47.50
7
8.57
38.57
47.14
8
7.50
40.63
48.13
9
6.67
43.33
50
10
6.00...
1. Complete the table given showing the costs of a perfectly competitive firm.
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Assume a single firm in a purely competitive industry has variable costs as indicated in the...
Assume a single firm in a purely competitive industry
has variable costs as indicated in the following table in column.
Complete the table and answer the questions.
Total Product
Total Var.
Total Cost
AFC
AVC
ATC
MC
0
$0
$40
1
55
2
75
3
90
4
110
5
135
6
170
7
220
8
290
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(b) At...
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a) Identify the fixed cost ??, and the variable cost of this
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c) Long-run supply. Find the minimum of the ??(?) curve, which
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