Exhibit 8-16 Short-run cost curves for a competitive
firm
In Exhibit 8-16, if the market price of its product is $50 per
unit, then the firm will:
Group of answer choices
A. have a loss
B. shut down.
C. exit the industry.
D. earn a zero economic profit.
Homework Answers
Answer
Option D
D. earn a zero economic profit.
The firm produces at MC=P
where
Q=5 units and ATC=$50 and P=$50
Economic profit =(P-ATC)*Q=(50-50)*5=0
the economic profit is zero.
Add Answer to:
Exhibit 8-16 Short-run cost curves for a competitive
firm
In Exhibit 8-16, if the market price...
Question 36 O out of 2 points Exhibit 8-16 Short-run cost curves for a competitive firm...
Question 36 O out of 2 points Exhibit 8-16 Short-run cost curves for a competitive firm 100 90 -MC Vd Cost per unit 70 ATC 60 50 (dollars) 40 30 20 10 AVC Quantity of output (units per hour) In Exhibit 8-16, the firm should shut down in the short run if the market price of its product falls below:
5. Deriving the short-run supply curve Consider the perfectly competitive market for dress shirts. The following...
5. Deriving the short-run supply curve Consider the perfectly competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. ? 80 72 64 56 40 АТС AVC 8 МС О 0 8 16 24 32 40 48 56 64 72 80 QUANTITY OF OUTPUT (Thousands of shirts) PRICE AND COST PER UNIT (Dollars) For each price in the following table,...
If there were 10 firms in this market, the short-run equilibrium price of copper would be...
If there were 10 firms in this market, the short-run equilibrium
price of copper would be $___ per pound. At that price firms in
this industry would (shut down / operate at a loss / earn zero
profit / earn a positive profit). Therefore, in the long run firms
would (enter / exit / neither enter nor exit) the copper
market.
Because you know that competitive firms earn (positive / zero /
negative) economic profit in the long-run equilibrium price...
The figure below provides the cost curves for a firm in a perfectly competitive market. If...
The figure below provides the cost curves for a firm in a
perfectly competitive market.
If the price market price is $16, what is the profit maximizing
level of output for the firm? How much profit does this firm earn
at this level of output?
Given your answer in part a, explain what will happen to this
industry in the long run.
Jim recently quit his part time job (working 15 hours per week
making $8 per hour) and opened...
COSTS (Dollars) 8 a88 + EmoK(LH14 6. Deriving the short-run supply curve Consider the competitive market...
COSTS (Dollars) 8 a88 + EmoK(LH14 6. Deriving the short-run supply curve Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry 100 90 70 60 ATC 50 40 30 20 AVC For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit....
Exhibit 8-17 Marginal revenue and cost per unit curves As shown in Exhibit 8-17, the firm...
Exhibit 8-17 Marginal revenue and cost per unit curves As shown in Exhibit 8-17, the firm will produce in the short run if the price is: Group of answer choices A. more than $10 per unit. B. more than $15 per unit. C. more than $20 per unit. D. more than $30 per unit. E. more than $40 per unit. ATC 1 AVC Price and costs per unit (dollars) 0 20 100 40 60 80 Quantity of output (units per...
3. A firm in a perfectly competitive market will produce no output in the short run...
3. A firm in a perfectly competitive market will produce no output in the short run if the price is below $18 but will produce if the price is above $18. The smallest quantity they will produce in the short run is 8. Firms will earn 0 economic profit if the price is $74 and its profit maximizing quantity is 12 at that price. The firm’s fixed cost is $576. Assume the good can be produced in continuous quantities. Draw...
The figure at right shows the cost curves for a competitive firm. The firm will shut...
The figure at right shows the cost curves for a competitive firm. The firm will shut down in the short run if price falls below /мс 15 O A. $15. O B. $11. O C. $10. O D. $5. AC „AVC 11 10 Price
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
19) The above figure shows the cost curves for a competitive firm. If the price is...
19) The above figure shows the cost curves for a competitive
firm. If the price is _______, then this firm will _______, and it
______ shut down in the short run.
A) less than $10; incur economic loss; will not.
B) greater than $10; earn economic profit; will not.
C) less than $10; incur economic loss; may or may not.
D) B and C only
E) A and B only
$1q] MC 15 AC 11 10 AVC 40
Question 36 O out of 2 points Exhibit 8-16 Short-run cost curves for a competitive firm 100 90 -MC Vd Cost per unit 70 ATC 60 50 (dollars) 40 30 20 10 AVC Quantity of output (units per hour) In Exhibit 8-16, the firm should shut down in the short run if the market price of its product falls below:
5. Deriving the short-run supply curve Consider the perfectly competitive market for dress shirts. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. ? 80 72 64 56 40 АТС AVC 8 МС О 0 8 16 24 32 40 48 56 64 72 80 QUANTITY OF OUTPUT (Thousands of shirts) PRICE AND COST PER UNIT (Dollars) For each price in the following table,...
If there were 10 firms in this market, the short-run equilibrium
price of copper would be $___ per pound. At that price firms in
this industry would (shut down / operate at a loss / earn zero
profit / earn a positive profit). Therefore, in the long run firms
would (enter / exit / neither enter nor exit) the copper
market.
Because you know that competitive firms earn (positive / zero /
negative) economic profit in the long-run equilibrium price...
The figure below provides the cost curves for a firm in a
perfectly competitive market.
If the price market price is $16, what is the profit maximizing
level of output for the firm? How much profit does this firm earn
at this level of output?
Given your answer in part a, explain what will happen to this
industry in the long run.
Jim recently quit his part time job (working 15 hours per week
making $8 per hour) and opened...
COSTS (Dollars) 8 a88 + EmoK(LH14 6. Deriving the short-run supply curve Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry 100 90 70 60 ATC 50 40 30 20 AVC For each price in the following table, use the graph to determine the number of jackets this firm would produce in order to maximize its profit....
The figure at right shows the cost curves for a competitive firm. The firm will shut down in the short run if price falls below /мс 15 O A. $15. O B. $11. O C. $10. O D. $5. AC „AVC 11 10 Price
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
19) The above figure shows the cost curves for a competitive
firm. If the price is _______, then this firm will _______, and it
______ shut down in the short run.
A) less than $10; incur economic loss; will not.
B) greater than $10; earn economic profit; will not.
C) less than $10; incur economic loss; may or may not.
D) B and C only
E) A and B only
$1q] MC 15 AC 11 10 AVC 40
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