Asked by Austin Vaughn on Jun 12, 2024
Verified
(a)Using the data from graph,calculate the firm's total profit.(b)If the firm operates at optimum efficiency,how much will its output be? (c)If the firm were a perfect competitor,how much will its price be in the long run?
Optimum Efficiency
The state in which resources are allocated in the most efficient manner possible, maximizing outputs while minimizing wastes and costs.
Perfect Competitor
An idealized market structure in which many firms produce identical products, entry and exit are easy, and all participants have perfect information.
Long Run
A period in economics in which all factors of production and costs are variable, allowing for full adjustment to change.
- Cultivate analytical abilities to determine a company's total profit in different scenarios.
- Determine the optimum production quantities for enterprises within various market frameworks.
- Understand the conditions for long-term stability for companies operating in a perfectly competitive market.
Verified Answer
JW
Johnetta WaldonJun 12, 2024
Final Answer : 
(a)Total Profit = (Price - ATC) *Output
= ($111.25 - $98.25) * 700
= $13 * 700
= $9,100
(b)625;
(c)$97.50
(a)Total Profit = (Price - ATC) *Output
= ($111.25 - $98.25) * 700
= $13 * 700
= $9,100
(b)625;
(c)$97.50
Learning Objectives
- Cultivate analytical abilities to determine a company's total profit in different scenarios.
- Determine the optimum production quantities for enterprises within various market frameworks.
- Understand the conditions for long-term stability for companies operating in a perfectly competitive market.