Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer this questions, thank you 1. The following graph summarizes the demand and costs for a firm that operates in a per- connect fectly

please answer this questions, thank you

image text in transcribed
1. The following graph summarizes the demand and costs for a firm that operates in a per- connect fectly competitive market. (LO1, LO6) a. What level of output should this firm produce in the short 548 run? 46 b. What price should this firm 44 42. charge in the short run? 40 c. What is the firm's total cost 38 36 - ATC at this level of output? 34 - d. What is the firm's total 32- 30 variable cost at this level of 28 DJ = MR output? 26- AVC e. What is the firm's fixed cost at this level of output? f. What is the firm's profit if it 18 - 16 - produces this level of output? 14 - g. What is the firm's profit if it 12 - AFC 10 shuts down? h. In the long run, should this firm continue to operate or shut down? 0 - 0 05 1 15 2 25 3 35 4 45 5 5.5 6 65 7 75 8 85 9 95 10 - Quantity 263 2. A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q) = 50 + 10Q + 2Q2. (LO3) a. How much output should the firm produce in the short run? b. What price should the firm charge in the short run? c. What are the firm's short-run profits? d. What adjustments should be anticipated in the long run

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mergers, Acquisitions, And Corporate Restructurings

Authors: Patrick A Gaughan

6th Edition

1118997549, 9781118997543

More Books

Students also viewed these Accounting questions

Question

SB 29 Chapte 7.7 Find the answer 6.3 Ner 6/5) 3/5

Answered: 1 week ago