Homework Answers
a) "D"
A firm is a price taker mean a firm can alter the output in the market without affecting the price.
b) "B"
It is perfectly elastic even though the market demand curve is downward sloping.
c) "C"
it is the MC curve that lies above the Average variable cost curve.
d) "B"
The firm will be producing at the point were the MR=MC and they will be maximising the profit
e) "B"
This is an increasing cost industry and the supply curve in the market will be sloping upward.
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16. To say that a firm is a price taker means that: a....
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity...
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity of output, K is the quantity of capital and L is the quantity of labor. If capital is fixed at 10 units in the short run then the short-run production function is: Q=10KL b. Q=50KL? Q=10L? d. 0=50L Q=500KL 8. For a linear total cost function: a. MC will be downward sloping b. MC = AVC c. AVC is upward sloping and linear d....
11. In drawing an isoquant curve, what is measured on the axes? a. the prices of...
11. In drawing an isoquant curve, what is measured on the axes? a. the prices of the inputs b. price and output c. the physical quantities of the two inputs d. expenditure on the two inputs e none of the above 12. Learning by doing doctrine suggests that: a. MC shifts upward as current output increases b. an increase in this period's output will cause future periods' long-run average cost curves to be lower c. The long-run average cost curve...
12. Learning by doing doctrine suggests that: a. MC shifts upward as current output increases b....
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Please answer the following 3 questions: QUESTION 1 In the short run, the perfectly competitive firm...
Please answer the following 3 questions:
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In which of the following types of markets does a single firm have the most market...
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Please answer the following 3 questions:
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The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
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