Homework Answers
a) "C"
A firm that shuts down in the short run its loss is equal to the fixed cost because the variable cost loss will occur only when they produce.
b) "A"
the firms demand will be perfectly elastic and demand for the market will be downward sloping.
c) "D"
When P = Atc then the firm is making a normal profit.
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The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice...
Is my choice correct? Refer to the diagrams, which show the demand and cost curves for...
Is my choice correct?
Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curv correct? ATC AVC MRP Multiple Choice C) The demand curve for a perfectly competitive firm is horizontal, but the demand curve for a perfectly competitive industry is downward sloping C ) The demand curve for a perfectly competitive firm is downward sloping, but the demand curve for a perfectly competitive industry is...
Please answer the following 3 questions: QUESTION 1 In the short run, the perfectly competitive firm...
Please answer the following 3 questions:
QUESTION 1 In the short run, the perfectly competitive firm will always earn an economic profit when P MC. P ATC. P > AVC P > ATC. QUESTION 2 The demand curve faced by a perfectly competitive industry is horizontal slopes upward. has no slope. slopes downward. QUESTION 3 The short-run supply curve of a perfect competitor is its marginal revenue curve. its marginal cost curve equal to or above the minimum point on...
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing...
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing firm will: MC ATC // AVC Multiple Choice shut down. ο produce with short-run losses. O produce with long-run economic profits. ο produce with short-run economic profits.
The MR = MC rule can be restated for a perfectly competitive seller as P = MC because: Multiple Choice Ο each addit...
The MR = MC rule can be restated for a perfectly competitive seller as P = MC because: Multiple Choice Ο each additional unit of output adds exactly its price to total revenue. Ο the firm's average revenue curve is downward sloping. Ο the market demand curve is downward sloping. Ο the firm's marginal revenue and total revenue curves will coincide.
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest tha...
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand curve facing the individual firm will Multiple Choice shift up. shift down. not shift. slope downward.
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand...
In the short run, a perfectly competitive firm earning a negative economic profit A) is on...
In the short run, a perfectly competitive firm earning a negative economic profit A) is on the downward-sloping portion of its AVC. B) is at the minimum of its AVC. C) is on the upward-sloping portion of its AVC. D) is not operating on its AVC. E) can be at any point on its AVC. Answer is C, but I have no idea why C is the correct answer.
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is perfectly vertical. maybe downward or upward sloping, depending upon the type of product offered for sale. In the short run, the best policy for a perfectly competitive firm is to Question 17 options: shut down its operation if the price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its...
Which of the following is true of a profit-maximizing competitive firm in the short run? The...
Which of the following is true of a profit-maximizing competitive firm in the short run? The firm produces at the point where price is equal to marginal cost. The firm produces at the point where average cost is at its minimum point. The demand curve faced by each firm in the industry is downward sloping. The firm always makes a zero economic profit. The firm suffers a deadweight loss.
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There are 80 firms in the industry, each of which has the cost curves shown on the following graph: MC ATC COST (Cents per bushel) AVC 0 5 10 15 20 25 30 35 40 45 50 Demand Supply Curve Equilibrium PRICE (Cents per bushel) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY OF OUTPUT (Thousands of bushels) in the short run....
The long-run supply curve for a perfectly competitive, constant-cost industry O is horizontal at minimum ATC....
The long-run supply curve for a perfectly competitive, constant-cost industry O is horizontal at minimum ATC. O is upward-sloping. O is horizontal at minimum AVC. O is found by adding up the marginal cost curves for all firms in the industry. As more firms enter the market: O the short-run market demand curve shifts to the left. O the short-run market supply curve shifts to the right. O the short-run market supply curve shifts to the left. O the short-run...
Is my choice correct?
Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curv correct? ATC AVC MRP Multiple Choice C) The demand curve for a perfectly competitive firm is horizontal, but the demand curve for a perfectly competitive industry is downward sloping C ) The demand curve for a perfectly competitive firm is downward sloping, but the demand curve for a perfectly competitive industry is...
Please answer the following 3 questions:
QUESTION 1 In the short run, the perfectly competitive firm will always earn an economic profit when P MC. P ATC. P > AVC P > ATC. QUESTION 2 The demand curve faced by a perfectly competitive industry is horizontal slopes upward. has no slope. slopes downward. QUESTION 3 The short-run supply curve of a perfect competitor is its marginal revenue curve. its marginal cost curve equal to or above the minimum point on...
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing firm will: MC ATC // AVC Multiple Choice shut down. ο produce with short-run losses. O produce with long-run economic profits. ο produce with short-run economic profits.
The MR = MC rule can be restated for a perfectly competitive seller as P = MC because: Multiple Choice Ο each additional unit of output adds exactly its price to total revenue. Ο the firm's average revenue curve is downward sloping. Ο the market demand curve is downward sloping. Ο the firm's marginal revenue and total revenue curves will coincide.
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand curve facing the individual firm will Multiple Choice shift up. shift down. not shift. slope downward.
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There are 80 firms in the industry, each of which has the cost curves shown on the following graph: MC ATC COST (Cents per bushel) AVC 0 5 10 15 20 25 30 35 40 45 50 Demand Supply Curve Equilibrium PRICE (Cents per bushel) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY OF OUTPUT (Thousands of bushels) in the short run....
The long-run supply curve for a perfectly competitive, constant-cost industry O is horizontal at minimum ATC. O is upward-sloping. O is horizontal at minimum AVC. O is found by adding up the marginal cost curves for all firms in the industry. As more firms enter the market: O the short-run market demand curve shifts to the left. O the short-run market supply curve shifts to the right. O the short-run market supply curve shifts to the left. O the short-run...
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