Calculate the average total cost at these different sales

Assignment Help Microeconomics
Reference no: EM13301682

Assume that a purely competitive firm is selling 2000 television sets a day at a cost of $90,000. Assume that if the firm sells 1600 units per day, its total cost would be $60,000, and if it sold 1000 units per day, it would have a total cost of $55,000.

Calculate the average total cost at these different sales levels.

Assuming that the cost structure for every firm in the industry is identical, do you think that the industry could be in long-run equilibrium?

If the industry is perfectly competitive, what would be the long-run equilibrium market price?

If your answer to c is the market price and every firm in the industry is earning a normal profit of 15 percent, calculate what that profit would be.

Reference no: EM13301682

Questions Cloud

Do the consumers or producers pay more : Suppose that the market for corn is characterized by many small farmers/firms who have no impact on the final price of corn. The market demand for corn has been estimated to be
What is the equilibrium quantity of milk if the market price : The demand for milk is given by Q=120,000-20,000P. a. What is the equilibrium quantity of milk if the market price is $3.00? b. What is the equilibrium quantity of milk if the market price drops to $2.90?
Show what happens to the individual demand curve : Graph the demand curve for QY. You may use prices for Y of 2, 4, 5, and 10 as a guide. (You can use these four points as a guide to get a reasonable approximation for the rest of the demand curve.)
Suppose that you work for a nonprofit that promotes locally : Suppose that you work for a nonprofit that promotes locally sourced agriculture. Your boss has tasked you with determining the equation for the market demand for broccoli. He or she states that you may assume that both the demand and supply curves ar..
Calculate the average total cost at these different sales : Assume that a purely competitive firm is selling 2000 television sets a day at a cost of $90,000. Assume that if the firm sells 1600 units per day, its total cost would be $60,000, and if it sold 1000 units per day, it would have a total cost of $55,..
What about the minimum amount that can be charged to break : Choco Delite is a manufacturer of fine chocolates. It's monthly rental expense is $1,000,000. It has 2 million in fixed labor costs. Its marginal costs are $.70 per chocolate bar
Does the government pricing mandate satisfy the kaldor-hicks : Does the government pricing mandate satisfy the Kaldor-Hicks Criterion relative to thestatus quo? Is the government pricing mandate Pareto superior to the status quo? (Usechanges in consumer and producer surplus as your measures of the value of the p..
How to compute the ph at one-half the equivalence point : If K sub a is 1.85 x 10^-5 for acetic acid, calculate the ph at one-half the equivalence point and the equivalence point for a titration of 50 ml of 0.100 M NaOH.
Prepare in good form the bank reconciliation : Prepare, in good form, the bank reconciliation as of November and prepare, in good form, the required adjusting journal entries.

Reviews

Write a Review

Microeconomics Questions & Answers

  When the allocatively efficent output level is produced

Apply the formula for the area of a triangle (Area= 1/2 x Base x Height ). What is the dollar value of the total surplus ( producer surplus plus consumer surplus) when the allocatively efficent output level is produced

  Who gains and who loses fro the tariff

If the country imposes a specific tariff of t = 0.5 per unit of imported X, what are the equalibrium price, quanitity produced domestically, quantity consumed domestically, and quantity imported? e. Who gains and who loses fro the tariff? Does nati..

  Estimate the annual active use value of the area

Imagine that you are trying to value a particular piece of wilderness that people use for recreational hiking and cycling. While this area has no entrance fee, statistics have been kept on who visits and how frequently they visit the area.

  Whatwill happen in the future to the proportion of mortgages

In effect, the CRA and the actions of Fannie Mae and Freddie Mac acted to subsidize home purchases by people who otherwise would not have purchased houses. All subsidies must be financed by taxes, implicit or explicit on someone.

  Explain what is the capture theory of regulation

Why do producers have more interest in government regulations than consumers do (a) Compare and contrast the public-interest and special-interest theories of economic regulation. What is the "capture theory" of regulation

  Determine the purpose of the session or meeting

The Mining Group Gold process is a team process and meeting management process whose sole purpose is to leverage the combined wisdom, experience, and ideas of everyone on the team in order to cash in on this wisdom to improve the overall meeti..

  Characteristics of monopolistic competitive firm

The companies in the detergent market closely fit the mold of the monopolistic competitive firm. Research the company in this market and describe how it fits some of the characteristics of the monopolistic competitive firm.

  Information about cost analysis

Airway Express has an evening flight from Los Angeles to New York with an average of 80 passengers and a return flight the next afternoon with an average of 50 passengers.

  What are the tr and mr for each acre

The first acre can produce 1000 bushels of wheat, the second acre 900, the third 800, and so on. How much revenue will each acre generate? what are the TR and MR for each acre?

  Whether production function exhibits increasing or constant

Sweetgrass Radiology Labs has a fixed amount of radiology equipment. The laboratory can hire any number of radiology technicians per hour to produce radiographs, which are displayed on a screen.

  How to focus on legal reforms will impact on situation

Our politicians frequently discuss what we need to do with respect to immigration reforms in this country. Some critics, however, suggest that a focus on legal reforms will not impact the situation significantly

  Compute the present value of an item

Determine what would be present value of an product that has a salvage value of $25,000 at the end of 5-years? Suppose a discount rate of 3.8 percent for an end of year factor.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd