Homework Answers
Existing firms will make economic profits as the price is greater than the average cost of production. The economic profits being earned by the firms will attract new entrants in the industry. The supply curve will shift to the right, price will come down to the extent that it is equal to the average cost of production and firms earn only normal profits or zero economic profits.
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Question 4 0.6 pts Refer to the information provided in the figure below to answer the...
all of them Question 1 (1 point) A firm producing a positive output level, covering variable...
all of them
Question 1 (1 point) A firm producing a positive output level, covering variable costs but making a loss in the short run O may nonetheless be doing the nest it can with respect to its profits O should exit the industry O should definitely shut down O is not maximizing profits O should either expand or contract its plant size Question 2 (1 point) The perfectly competitive firm's profits can be calculated as O (MR-ATC)Q O (P-AVC-AFC)Q....
Refer to the information provided in Figure 5.2 below to answer the questions that follow. $4...
Refer to the information provided in Figure 5.2 below to answer the questions that follow. $4 10 A B 8 Price 6 C E 4 F N 1 2 3 4 5 Number of hamburgers Figure 5.2 Refer to Figure 5.2. If the price of a hamburger is increased from $6 to $8, the price elasticity of demand equals Use the midpoint formula. -0.24 - 1.0 0 -1.4 -2.0 Free entry implies that the government regulates the number of firms...
Refer to the information provided in Figure 8.9 below to answer the questions that follow. SA...
Refer to the information provided in Figure 8.9 below to answer the questions that follow. SA MC ATC P = MR 24 20 18 Price 0 100 350 500 700 4 Bales of hay Figure 8.9 Refer to Figure 8.9. if the price jay falls to 18, to maximize profits, the firm should. produce 700 to minimize fixed costs O produce 350 and break even- reduce production to 500 shut down to avoid losses If P = MC and MC...
Please help with these questions Question 45 0.4 pts Refer to the accompanying figure to answer...
Please help with these questions
Question 45 0.4 pts Refer to the accompanying figure to answer the following questions. Price and Cost MC ATC Quantity If the price is $3, the firm is making a profit and will exit the market. O zero profits and the market is at long-run equilibrium. O a proft and more firms will enter the market. O a loss and will exit the market. a loss and more firms will enter the market. Question 46...
Please help with these questions Question 1 0.4 pts We could state correctly that the minimum...
Please help with these questions
Question 1 0.4 pts We could state correctly that the minimum characteristic necessary to distinguish among price-making firms is O the level of the concentration ratio. O whether they produce industrial or consumer products. O the number of firms in the industry O price discrimination. O product differentiation. Question 2 0.4 pts According to Section 2 of the Sherman Antitrust Act, a person who attempts to monopolize commerce among the several states is guilty of...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
Please help with these questions, Question 11 0.16 pts If Firm A is making zero economic...
Please help with these questions,
Question 11 0.16 pts If Firm A is making zero economic profits, Firm A is breaking even when opportunity cost is taken into consideration. O Firm A is also making negative accounting profits. other firms want to enter the market. Firm A wants to shut down in the short run. O Firm A wants to leave the market. Question 12 0.16 pts If firms in a competitive market are making positive economic profits, the long-run...
Refer to Figure 14-7. Assume that the market starts in equilibrium at point A in panel...
Refer to Figure 14-7. Assume that the market
starts in equilibrium at point A in panel (b). An increase in
demand from Demand0 to Demand1 will result
in
a) an eventual increase in the number of firms in the market and
a new long-run equilibrium at point D.
b) rising prices and falling profits for existing firms in the
market.
c) prices and falling profits for existing firms in the
market.
d) a new market equilibrium at...
Question 32 (1 point) Refer to the information provided in Figure 8.9 below to answer the...
Question 32 (1 point) Refer to the information provided in Figure 8.9 below to answer the questions that follow. MC 24 ATC P = MR Price 4 0 100 700 350 500 Bales of hay Figure 8.9 Refer to Figure 8.9. if the price jay falls to 18, to maximize profits, the firm should. O produce 700 to minimize fixed costs O produce 350 and break even- reduce production to 500 shut down to avoid losses
Refer to the information provided in Figure 13.5 below to answer the questions that follow. MC...
Refer to the information provided in Figure 13.5 below to answer the questions that follow. MC ATC Price per unit LL MR 20222426 hits of output Figure 13.5 1. Refer to Figure 13.5. The profit-maximizing level of output for this monopolist is units of output. A) 20 B) 22
all of them
Question 1 (1 point) A firm producing a positive output level, covering variable costs but making a loss in the short run O may nonetheless be doing the nest it can with respect to its profits O should exit the industry O should definitely shut down O is not maximizing profits O should either expand or contract its plant size Question 2 (1 point) The perfectly competitive firm's profits can be calculated as O (MR-ATC)Q O (P-AVC-AFC)Q....
Refer to the information provided in Figure 5.2 below to answer the questions that follow. $4 10 A B 8 Price 6 C E 4 F N 1 2 3 4 5 Number of hamburgers Figure 5.2 Refer to Figure 5.2. If the price of a hamburger is increased from $6 to $8, the price elasticity of demand equals Use the midpoint formula. -0.24 - 1.0 0 -1.4 -2.0 Free entry implies that the government regulates the number of firms...
Refer to the information provided in Figure 8.9 below to answer the questions that follow. SA MC ATC P = MR 24 20 18 Price 0 100 350 500 700 4 Bales of hay Figure 8.9 Refer to Figure 8.9. if the price jay falls to 18, to maximize profits, the firm should. produce 700 to minimize fixed costs O produce 350 and break even- reduce production to 500 shut down to avoid losses If P = MC and MC...
Please help with these questions
Question 45 0.4 pts Refer to the accompanying figure to answer the following questions. Price and Cost MC ATC Quantity If the price is $3, the firm is making a profit and will exit the market. O zero profits and the market is at long-run equilibrium. O a proft and more firms will enter the market. O a loss and will exit the market. a loss and more firms will enter the market. Question 46...
Please help with these questions
Question 1 0.4 pts We could state correctly that the minimum characteristic necessary to distinguish among price-making firms is O the level of the concentration ratio. O whether they produce industrial or consumer products. O the number of firms in the industry O price discrimination. O product differentiation. Question 2 0.4 pts According to Section 2 of the Sherman Antitrust Act, a person who attempts to monopolize commerce among the several states is guilty of...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
Please help with these questions,
Question 11 0.16 pts If Firm A is making zero economic profits, Firm A is breaking even when opportunity cost is taken into consideration. O Firm A is also making negative accounting profits. other firms want to enter the market. Firm A wants to shut down in the short run. O Firm A wants to leave the market. Question 12 0.16 pts If firms in a competitive market are making positive economic profits, the long-run...
Refer to Figure 14-7. Assume that the market
starts in equilibrium at point A in panel (b). An increase in
demand from Demand0 to Demand1 will result
in
a) an eventual increase in the number of firms in the market and
a new long-run equilibrium at point D.
b) rising prices and falling profits for existing firms in the
market.
c) prices and falling profits for existing firms in the
market.
d) a new market equilibrium at...
Question 32 (1 point) Refer to the information provided in Figure 8.9 below to answer the questions that follow. MC 24 ATC P = MR Price 4 0 100 700 350 500 Bales of hay Figure 8.9 Refer to Figure 8.9. if the price jay falls to 18, to maximize profits, the firm should. O produce 700 to minimize fixed costs O produce 350 and break even- reduce production to 500 shut down to avoid losses
Refer to the information provided in Figure 13.5 below to answer the questions that follow. MC ATC Price per unit LL MR 20222426 hits of output Figure 13.5 1. Refer to Figure 13.5. The profit-maximizing level of output for this monopolist is units of output. A) 20 B) 22
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