answer all of the questions giving simple but correct answers and draw graphs if needed

1. Assume that in a perfectly competitive market, a firm's costs and revenues are

marginal cost = average variable cost at $20

marginal cost = average total cost at $30

marginal cost = average revenue at $25

How will this firm determine the profit maximizing level of output?

What price will this firm charge? Explain how the firm determined this price.

Should this firm produce in the short run? Why or why not?

Will this firm earn a profit or incur a loss? Why?

2.

Zucchini is produced in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. Dawson Farm is a typical perfectly competitive farm that produces and sells zucchini at the equilibrium price of $1.75 per pound. Which of the following is true? A No buyer in the market is willing to pay more than $1.75 per pound for zucchini. Bookma B No buyer in the market is willing to pay more than $1.75 per pound for zucchini from Dawson Farm. C Market demand for zucchini will increase if Dawson Farm lowers its price below $1.75 per pound. D Dawson Farm would lose some but not all of its customers if it increases the price above $1.75 per pound for zucchini. E Dawson Farm would likely be able to increase the demand for its zucchini by advertising.Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer. A firm's short-run production function shows the relationship between the firm's input and output. Assume the firm uses one variable input, labor, and one fixed input, capital. The following table shows short-run production function for a firm that produces widgets. Quantity of Labor Total Product 0 0 6 2 14 24 4 32 5 39 6 42 (a) Calculate the marginal product of the sixth worker. Show your work. (b) Does the production function exhibit diminishing returns to labor? Explain. (c) When marginal product is falling, what happens to marginal cost? (d) On a single correctly labeled graph, draw the firm's short-run average total cost curve (ATC), average variable cost curve (A VC), and marginal cost curve (MC).Quantity (units) Total Revenue ($) Total Cost ($) 0 0 100 200 150 19 250 190 09 275 210 290 225 5 300 255 6 305 300 In the table provided, at which quantity is the marginal revenue equal to marginal cost? A B 3 C 4 D 5 E 6Assume a competitive firm is producing where price (P) and marginal revenue (MR) are greater than marginal cost (MC) and average variable cost (AVG). Which of the following is true regarding the firm's shortrun output level? 0 @@@ The firm is producing too little and should increase its output level until P =MIR = MC. The firm is producing too much and should reduce its output level until P :MR : AVG. The firm is not maximizing profits and should raise its price but not change its output level. The firm should increase its marginal revenue to equal price and reduce its output level until MR : MC. The firm should reduce Its price until P =MR = MC. Marginal Cost Average Total Cost PRICE Average G H Variable Cost L D E F OUTPUT PER YEAR At the price OA, economic profits are (A) ABJG B ABKH C ABLI (D ACMGThe following questions are based on the table provided. The table provided shows a rm's average xed cost (AFC). total variable cost (TVC). and total economic prot at different levels of output in units. 200 $1,600 $1,000 lfthe marginal revenue of the 2015'0 unit of output is $15 and the marginal cost of the 2013t unit is $20. the total economic profrt of producing 201 units will be $995 $1,000 $1,005 (0) $1,015 $1,035 Quantity of Output Total Variable Cost [units) C $0 $40 $50 AWN- $65 $90 Assume that the fixed cost is $50. Based on the cost and output data in the table above, what is the marginal cost when the firm increases its output from three to four units and the average total cost of producing 4 units? Bookn Marginal Cost Average Total Cost A $35 $40 B Marginal Cost Average Total Cost $35 $35 C Marginal Cost Average Total Cost $25 $35In the short run, which of the following must be true for a perfectly competitive firm that is maximizing profits? A. The firm will shut down if it has any economic losses. B The firm will produce at the minimum of average total cost. C The firm will produce where MR = MC, but price from the demand curve is greater than MC. (D The firm will produce where MR = MC as long as P is greater than average variable cost. E The firm will produce the quantity that exhibits allocation and productive efficiency.Raheem is currently working as a financial analyst earning $75,000 a year and is considering quitting his current job to start an art gallery. The estimated annual revenue from the art gallery is $175,000. The annual cost of labor, advertising, and acquiring the art inventory is $125,000. What are Raheem's accounting and economic profits if he opens the art gallery? A Accounting profit is -$25, 000, and economic profit is $50, 000. B Accounting profit is $100, 000, and economic profit is $50, 000. C Accounting profit is $50, 000, and economic profit is -$25, 000. D Accounting profit is $100, 000, and economic profit is -$25, 000. E Accounting profit is $50, 000, and economic profit is $100, 000.Re Curve 1 PRICE (COST) Curve 2 R S Curve 3 P 3 K QUANTITY OF OUTPUT The graph above shows the short-run cost structure of a firm in a perfectly competitive industry. a. Identify the cost curves that are denoted by each of the following labels. i. Curve 1 ii. Curve 2 iii. Curve 3 b. Explain why curve 1 does each of the following as output increases. i. Initially decreases ii. Finally increases a What massure of east is represented bu tha wartisal distanna baturan AUnm JandQUANTITY OF OUTPUT The graph above shows the short-run cost structure of a firm in a perfectly competitive industry. a. Identify the cost curves that are denoted by each of the following labels. i. Curve 1 ii. Curve 2 iii. Curve 3 b. Explain why curve 1 does each of the following as output increases. i. Initially decreases ii. Finally increases c. What measure of cost is represented by the vertical distance between curve 2 and curve 3 ? d. Explain why the vertical distance between curve 2 and curve 3 decreases as output increases. e. Using the letters on the graph, identify two points on the firm's short-run supply curve