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

  What are the pros and cons of importing cheap services

International trade has pros and cons. Economists generally support free trade. International trade has played a significant part in promoting economic development and technology transfer among countries. There are also various arguments in favor ..

  Medicare payment advisory commission

The Medicare Payment Advisory Commission recently voted to suggested to Congress to institute a set of pay for performance incentives for providers serving Medicare patients.

  What is the monopolist marginal revenue function

What is the monopolist marginal revenue function and find the monopolist profit maximizing quantity and price and the deadweight loss of the monopolist.

  Formulate a message you leave regarding the economic times

Assume that you are leaving a message in a time capsule to be opened 100 years from now. Formulate a message you leave regarding the economic times of your lifetime and what could have been done to make our economy better.

  Analyze the backgrounds and impacts of deregulation wave

Starting in late 1970s and continuing through the 2000s, business environment moved toward relying less on government regulation and more on marketplace to get desired economic targets.

  What would the new price and equilibrium

Find the supply function for the hospitals and  Suppose the hospitals merge into one umbrella organization to improve their bargaining position. What would the new price and equilibrium be?

  Which of the families in the city will buy their shirts

Jim enters the town and makes a factory, which is employed by the locals. Every worker in the factory works on one machine and is able to produce 6 shirts per hour. The cost of running the machine is half a loaf of bread per hour, the cost to empl..

  Which is fastest growing traditional individual sport in us

Prince Sports wants to exploit a favorable trend-the dramatic growth in tennis participation. For example, a recent study by the Sporting Good Manufacturers Association notes that tennis participation in the U.S. was up 43 percent from 2000 to 200..

  Calculate the elasticity of demand and elasticity of supply

Calculate the elasticity of demand and elasticity of supply at each price change in the market for financial calculators

  Compare the consumer surplus with producer surplus

Compare the consumer surplus, producer surplus, and total surplus in this condition to those same measures in a perfectly competitive market.

  What is called the extra cost of one more unit of output

Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on them. She currently buys 8 units of Alpha and 12 units of Beta. The marginal utility of Alpha is 40, and the marginal utility of Beta is 2..

  Benefits of pursuing additional education

What are the marginal costs and benefits of pursuing additional education and inherent risks associated with this decision?

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