16. In the accompanying table, you are given information abouttwo firms that compete in a price-taker market. Assume thatfixed costs for each firm are $20.a. Complete the table.b. What is the lowest price at which firm A will produce?c. How many units of output will it produce at that price?(Assume that it cannot produce fractional units.)d. What is the lowest price at which firm B will produce?e. How many units of output will it produce?f. How many units will firm A produce if the market priceis $20? FIRM AFIRM BTOTALQUANTITYVARIABLE COSTMARGINALCOSTAVERAGEVARIABLE COSTQUANTITYTOTALVARIABLE COSTMARGINALCOSTAVERAGEVARIABLE COST1$241$8230210338316448245625366826567110786

Answered: Image /qna-images/answer/553cdde1-0522-4557-b563-fb1ecb7490cd.jpg

Answered: 16. In the accompanying table, you are…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?
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*Suppose that the development of a new droughtresistanthybrid seed corn leads to a 50 percent increase in the averageyield per acre without increasing the cost to the farmers who usethe new technology. If the producers in the corn production industrywere price takers, what would happen to the following?a. the price of cornb. the profitability of corn farmers who quickly adopt thenew technologyc. the profitability of corn farmers who are slow to adopt thenew technologyd. the price of soybeans, a substitute product for corn
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A5 5. Suppose the market is perfectly competitive. The equilibrium market price P = $20. A consumer's willingness to pay (WTP) is WTP = 30 - q. (a) How much this consumer will buy and wh (b) How much a typical firm will produce the firm's marginal cost MC = 2q. If the average total cost is ATC = q, can you tell if this firm is making positive, negative, or zero economic profit (c) It is assumed here that all firms are identical. In what sense are they identica (d) Suppose now that one firm's marginal cost is: MC = 25/q. Can this industry still remain perfectly competitive? Why not?l?s?y?
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1-> O O O O Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal cost of growing peaches for an individual grower are illustrated in the figure to the right. Assume that the market price for peaches is $6.50 per box. What is the profit-maximizing quantity for peach growers to produce? boxes. (Enter your response as an integer.) At this level of output, profit will be $. (Enter your response rounded to the nearest dollar.) Peach growers will earn positive economic profit in the short run at any market price above $ per box. (Enter your response rounded to one decimal place.) Price (dollars per box) 10- 9- 8- 7- 6- 4- 3- 2- 1 0 MC ATC 10 20 30 40 40 50 60 70 80 90 100 Output (boxes of peaches per day) Q Next
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