At a market price of $83 a batch, what quantity does Lins produce and what is the
Question:
At a market price of $83 a batch, what quantity does Lin’s produce and what is the firm’s economic profit in the short run? Do firms enter or exit the market and what is Lin’s economic profit in the long run?
The market for cookies is perfectly competitive. The table to the right shows some cost data for Lin’s Fortune Cookies.
Transcribed Image Text:
Quantity AFC (batches per day) I 2 3 4 5 6 7 8 84.0 42.0 28.0 21.0 16.8 14.0 12.0 10.5 AVC ATC (dollars per batch) 51.00 44.00 39.00 36.00 35.20 36.00 39.00 44.50 135 86 67 57 52 50 51 55 MC 37 29 27 32 40 57 83
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 87% (8 reviews)
Lin produces the quantity at which marginal revenu...View the full answer
Answered By
OTIENO OBADO
I have a vast experience in teaching, mentoring and tutoring. I handle student concerns diligently and my academic background is undeniably aesthetic
4.30+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
In Problem 23, do firms enter or exit the market in the long run? What is the market price and the equilibrium quantity in the long run?
-
A permanent increase in demand ______ economic profit in the short run and some firms will ____ in the long run. A. Does not change; exit the market B. Increases; enter the market C. Increases; raise...
-
In the short run, at a market price of $45 per purse, this firm will choose to produce purses per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing...
-
It is clear that Jaguar practices responsibility toward the environment. Using your knowledge gained from this Jaguar case study and further research, provide five (5) examples of how Jaguar is...
-
For the company in Problem 2, show how the equity accounts will change if: a. Octagon declares a four-for-one stock split. How many shares are outstanding now? What is the new par value per share? b....
-
A manufacturer of computer terminal fuses wants to establish a control chart to monitor the production process. Each hour, for a period of 25 hours, during a time when the process is known to be in...
-
Social media and mobile marketing are big components of most companies promotional campaigns. Discuss how these methods of marketing affect you and your buying behavior. Do these marketing techniques...
-
Denver Engineering manufactures small engines that it sells to manufacturers who install them in products such as lawn mowers. The company currently manufactures all the parts used in these engines...
-
In March 2022, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Gingers gift tax liability for 2022 if she and Greg elect gift splitting and Greg...
-
1. So what is in a name? Is Hyatt right to use the name Hyatt Place? 2. Is InterContinental or Hilton wrong not to include their name, as in Hilton Hampton Inn or Hampton Inn by Hilton? What is your...
-
Perfect competition is efficient because all the following conditions hold except ________. A. Total product is maximized B. Firms maximize profit and produce on their supply curves C. Consumers get...
-
At what market prices would the firm shut down temporarily? What is the market price of a toy in long-run equilibrium? How many firms will be in the toy market in the long run? Explain your answer....
-
Use the guidelines of this section to sketch the curve. y = 1 + 1/x + 1/x 2
-
Previous research suggests that many firms 'over - invest' in advertising - meaning spend beyond a point where advertising positively affects a firm's bottom line (if interested see here: Advertising...
-
A&D High Tech (A) Case Questions The case assignment is as follows: The CIO of A&D High Tech, Matt Webb, needs to determine whether the proposed online store project can be completed in time for the...
-
J . R . s wife calls the physician s office two week s later and she tells you, This medicine is not working and now he said he is not going to take anything. How do you respond to J . R . s wife?
-
Zach and the hospital board of directors are concerned about the organizational culture in the emergency department. Zach has asked you to recommend ways to improve the organizational culture and to...
-
Few jobs for PhD graduates Do you believe that everyone who has completed a doctorate holds well-paid teaching jobs? Think again! According to a recent survey by MITACS, an organization dedicated to...
-
Compare how the United States taxes a U.S. citizen and a nonresident alien.
-
The time to assemble the first unit on a production line is 10 hours. The learning rate is 0.94. Approximately how long will it take for the seventh unit to be assembled? The number of hours needed...
-
The table above shows the PPF of an island community. Choose the best statement. A. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more...
-
The table above shows the PPF of an island community. Choose the best statement. A. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more...
-
The table above shows the PPF of an island community. Choose the best statement. A. When a drought hits the island, its PPF shifts outward. B. When the islanders discover a better way of catching...
-
Our customer will not pay us; we write their receivable off of our books as uncollectible Question 26 options: Estimates Invoice Receive payment Sales receipt Bank deposit Credit memo Refund receipt...
-
Assignment of benefits is Question 20 options: the transfer of one's legal right to collect an amount payable under an insurance contract. used only by non-par physicians. the transfer of the...
-
Graded Discussion Board Activity ( 5 % ) Mandatory - Worth Marks! Practicing the SPIN Question System You are a salesperson for Mr . Coffee", supplying offices and businesses with coffee makers (...
Study smarter with the SolutionInn App