Homework Answers
Question 17
A perfectly competitive firm is a price taker.
This implies that it has to accept the price as decided by the market.
Since, the price is given, each successive unit sold brings in the same amount.
In other words, if market price is $9 per unit then each successive unit sold by perfectly competitive firm will bring in $9 as additional revenue.
This additional revenue is referred to as marginall revenue.
So,
In case of perfect competition, the marginal revenue of a firm always equals the product price.
Hence, the correct answer is the option (A).
Add Answer to:
17. In perfect competition, the marginal revenue of a firm always equals: A) product price. B)...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply measures how responsive producers are to changes in the price of other goods. B) The price elasticity of supply measures how responsive producers are to changes in income. C) The price elasticity of supply measures how responsive producers are to changes in the price of a product. D) The price elasticity of supply is a measure of the slope of the supply curve. E)...
1. At a price of $5, quantity demanded is 70; and at a price of $7,...
1. At a price of $5, quantity demanded is 70; and at a price of $7, quantity demanded is 50. Since total revenue ________ by the price increase, demand must be ________. A.is unchanged; unit elastic B.is increased; elastic C.is decreased; inelastic D.is unchanged; elastic 2. Demand determines ________ entirely when ________ is perfectly inelastic. A.quantity; supply B.price; supply C.price and quantity; supply D.price and quantity; demand
Which of the following cases will result in the largest decrease in equilibrium price?
Which of the following cases will result in the largest decrease in equilibrium price? The largest change in equilibrium quantity? Verify your answers by drawing graphs. a. Demand is highly inelastic; there is a relatively large increase in supply b. Demand is highly elastic; there is a relatively small increase in supply. c. Supply is highly inelastic: there is a relatively small decrease in demand. d. Supply is highly elastic and demand is very inelastic; there is a relatively large increase in supply
A good is considered normal when its income elasticity of demand is ___ and inferior when the...
A good is considered normal when its income elasticity of demand is ___ and inferior when the its income elasticity of demand is ___. Greater than zero, less than zero. Less than zero, greater than zero. Greater than one, less than one. Less than one, greater than one. If an increase in prices decreases total revenue in the short run, what will it do to total revenue in the long run? It will decrease total revenue in the long run. It...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
QUESTION 5 You are an artist and create limited edition sculptures for sale at your website....
QUESTION 5 You are an artist and create limited edition sculptures for sale at your website. Due to the limited number of pieces created, your supply curve is perfectly inelastic (vertical). What happens to the equilibrium price and quantity of sculptures sold if the demand curve for your art shifts to the right? A. Price declines and quantity does not change B. Price and quantity decline C. Price and quantity increase D. Price increases and quantity does not change QUESTION...
Fall 2019 Economics 2100 MY9 Section First Exam - Version A 19. Suppose that the MTA...
Fall 2019 Economics 2100 MY9 Section First Exam - Version A 19. Suppose that the MTA raises the subway fare by 25% and its total revenue rises by 15% This implies that the price elasticity of demand is: c) unit elastic elastic but not perfectly elastic perfectly inelastic inelastic but not perfectly inelastic d) 20. At the equilibrium price for a good: the quantity may rise or fall there may be excess demand for a product but not excess supply...
If the quantity demanded of a product drops to zero with an increase in its price,...
If the quantity demanded of a product drops to zero with an increase in its price, then the demand for that product is said to be _____. a. inelastic b. unit elastic c. perfectly elastic d. perfectly inelastic
36. A decrease in price will increase the total revenue a firm receives if the demand...
36. A decrease in price will increase the total revenue a firm receives if the demand for its product is: a. zero elastic b. perfectly inelastic c. inelastic d. elastic
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of...
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of Calgary and the surrounding areas decrease, this will result in? a. an increase in the equilibrium price only. b. a decrease in the equilibrium price only. c. an increase in the equilibrium quantity and a decrease in price. d. an increase in the equilibrium quantity with no increase in price. e. a decrease in equilibrium quantity and a decrease in price. 35. If a...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
Fall 2019 Economics 2100 MY9 Section First Exam - Version A 19. Suppose that the MTA raises the subway fare by 25% and its total revenue rises by 15% This implies that the price elasticity of demand is: c) unit elastic elastic but not perfectly elastic perfectly inelastic inelastic but not perfectly inelastic d) 20. At the equilibrium price for a good: the quantity may rise or fall there may be excess demand for a product but not excess supply...
36. A decrease in price will increase the total revenue a firm receives if the demand for its product is: a. zero elastic b. perfectly inelastic c. inelastic d. elastic
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of Calgary and the surrounding areas decrease, this will result in? a. an increase in the equilibrium price only. b. a decrease in the equilibrium price only. c. an increase in the equilibrium quantity and a decrease in price. d. an increase in the equilibrium quantity with no increase in price. e. a decrease in equilibrium quantity and a decrease in price. 35. If a...
Most questions answered within 3 hours.
-
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 28 minutes ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 30 minutes ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 35 minutes ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 39 minutes ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 49 minutes ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 57 minutes ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 55 minutes ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 59 minutes ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 1 hour ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 1 hour ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 1 hour ago -
Inheritance pattern in BRCA 1
Describe the inheritance pattern of BRCA 1 Is it recessive or...
asked 1 hour ago