The following figure shows long-run average and marginal cost curves for a competitive firm. The price of

Question:

The following figure shows long-run average and marginal cost curves for a competitive firm. The price of the product is $40.

a. How much will the firm produce? What will be its economic profit?b. When the industry attains long-run competitive equilibrium, what will be the price and the firm?s output? What will be the firm?s economic profit?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Managerial Economics Foundations of Business Analysis and Strategy

ISBN: 978-0078021909

12th edition

Authors: Christopher Thomas, S. Charles Maurice

See More Books

Question Posted: Feb 24, 2020 08:52 AM

See More Questions

Consider a monopoly firm with the demand and cost curves below. Assume that the firm is operating in the short run with the plant designed to produce 400 units of output optimally. a. What output...
If the short- run marginal and average variable cost curves for a competitive firm are given by SMC = 2 + 4Q and AVC = 2 + 2Q, how many units of output will it produce at a market price of 0? At what...
Suppose there are a fixed number of 1,000 identical firms in the perfectly competitive concrete pipe industry. Each firm produces the same fraction of total market output and each firm's production...
Graph the function y = (x + |x|). At what values of x does the derivative exist and what is the value of the derivative when it does exist?
Biochemists studying the structure of collagen (a fibrous protein in connective tissue) found cross-links containing ,-unsaturated aldehydes between protein chains. Show the structures of the side...
Explain the disadvantages of RI valuation compared with traditional approaches such as the DDM.
As a gambling facility, MGM Desert Inn, Inc., regularly holds and executes negotiable instruments. During a period of two months, patron William E. Shack Jr. entered MGM and delivered eight checks to...
Since its inception, Eco Plastics Company has been revolutionizing plastic and trying to do its part to save the environment. Ecos founder, Marion Cosby, developed a biodegradable plastic that her...
Regarding 1031 exchanges, which of these statements regarding debt load in an exchanged property is true? Unset starred question The 1031 exchange doesn't address debt load. The debt load for the new...
Project Alpha has two phases. You may invest in the first, in both, or in neither. The first phase requires an investment of $100 today. One year later, Alpha will deliver either $120 or $80, with...
A perfectly competitive firm faces a market-determined price of $25 for its product. a. The firm?s total costs are given in the schedule above. Fill in columns 3 and 4 for average total cost and...
Suppose that a competitive industry is in long-run competitive equilibrium. Then the price of a substitute good (in consumption) decreases. What will happen in the short run to a. The market demand...
Find the total income over the next 10 years from a continuous income stream that has an annual rate of flow at time t given by f (t)=12,000e0.01t (dollars per year).
McLane Company supplies and distributes goods to retailers. McLane requires employees with physically demanding jobs to take physical evaluations. Damiana Ochoa had such a job with McLane for eight...
What types of owners share ownership rights simultaneously in particular property?
While walking to work at Millers Bakery, Bill finds a Rolex watch lying on the sidewalk directly in front of the bakery. He gives the watch to his son, Otto. Two weeks later, Martin, the watchs true...
Hobie and Colleen designed and developed a smartphone app called Do It. Do It is a game in which players cooperate rather than compete to complete a task, such as draw a picture, play a tune, or...
What are some consequences if the procedures for incorporation are not followed precisely?
Toxaphene is an insecticide that has been identified as a pollutant in the Great Lakes ecosystem. To investigate the effect of toxaphene exposure on animals, groups of rats were given toxaphene in...
Using Apple, demonstrate how the differentiation strategy can be well implemented.
The Workerbee Company employs 100 high school graduates and 50 college graduates at respective wages of $10 and $20. The total product for high school graduates is 1000 + 100Q H , whereas the total...
Suppose the Jones Manufacturing Company produces a single product. At its current input mix the marginal product of labor is 10 and the marginal product of capital is 20. The per unit price of labor...
Suppose the production function of PowerGuns Co. is given by Q = 25 LK where Q is the quantity of guns produced in the month, L is the number of workers employed, and K is the number of machines used...
What are the four critical areas in which employees should have pride, enjoyment, trust, and benefit to enable high morale?
Your problem statement assignment will include the following: A brief, yet clear and explicit description of the organization. A description of the problem being observed or experienced in the...
What is the main responsibility of prompt engineers?

The following figure shows long-run average and marginal cost curves for a competitive firm. The price of

Question:

LMC 40 D = MR = P LAC 30 20 10 2,000 4,000 6,000 8,000 10,000 Quantity Price and cost

Step by Step Answer:

a The firm will produce 8000 units of goods ProfitPATCQuantity 40258000 1...View the full answer

Managerial Economics Foundations of Business Analysis and Strategy

Students also viewed these Business questions