5 Econ 101 Questions

1.

In the graph below, if price is P1, the profit-maximizing rate of output is units. 100.00- 90.00- MC 80.00- 70.00-P 3 60.00-.. ATC Price, ATC, AVC, MC 50.00- AVC 40.00-.... . P1 30.00- 20.00- 10.00- Q1 Q2 Q 3 0.00- 100 200 300 400 500 600 700 800 900 1000 Quantity (per month)The graph below shows the marginal cost, average variable cost, and average total cost curves for a perfectly competitive firm. Drag and drop to identify this firm's shutdown point. .4: C I) 5 (D Q 4) (D O O 'D C (U m o ' C O. O Short-run average profits or losses are determined by comparing total costs with at the profit-maximizing rate of output. The perfectly competitive firm's price equals the firm's minimum average total cost, and price equals the firm's minimum average variable cost. The firm will continue production at a price that average variable costs because revenues exceed total costs of producing. At the break- even price, the firm is making economic profits. The firm's short-run supply curve is the portion of its cost curve at and above its minimum average cost.ACL Communications manufactures and sells a standard type of pager in a perfectly competitive market. This market consists of 1000 identical firms (including ACL). Using the graph below answer the following questions: by] 05000 IJ M M Ix) Id to 4- O O'IGO orohmmorJ-F- Price per pager 012345673910 Quantity {Hundreds of pagers] At a price of $22 per pager, ACL's short-run quantity supplied will equal pagers per day. At a price of $8 per pager, ACL's shortrun quantity supplied will equal pagers per day. At a price of $3 per pager, ACL's shortrun quantity supplied will equal pagers per day. The minimum price at which ACL would consider operating at (versus shutting down) is $ _ per pager Do not enter the dollar Sign ($) while entering your answer. A monopolist is the single seller of a product or good for which there is no substitute. To maintain a monopoly, there must be barriers to entry. Barriers to entry related to ownership of resources without close substitute is classed as barriers to entry. For the perfect competitor, price equals |:| revenue equals average revenue. For the monopolist, |:| revenue is always less than price because price must be reduced on all units to sell more