Homework Answers
Option (C) is incorrect.
Firms maximize profit by equating Marginal revenue (MR) with Marginal cost (MC). Since for perfectly competitive firms, Price equals MR, for these firms profit is maximized by equating Price with MC (not AVC).
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Question 9: Chapter manko7t, Section .101, Problem 050 9. Chapter mankot, Section 101, Problem 050 Which...
a declines continually as output increases. Question 8 In perfectly competitive long-run equilibrium: all firms make...
a declines continually as output increases. Question 8 In perfectly competitive long-run equilibrium: all firms make positive economic profits. all firms produce at the minimum point of their average total cost curves. the industry supply curve must be upward sloping. all firms face the same price, but the value of marginal cost will vary directly with firm size. Question 9
QUESTION 25 Table 14-11 Suppose that a firm in a competitive Price Quantity Total cost Refer...
QUESTION 25 Table 14-11 Suppose that a firm in a competitive Price Quantity Total cost Refer to Table 14-11. The marginal revenue from producing the Sth unit equals (i) $6. (ii) the price. (iii) the marginal cost a. (i) only b.(i) and (ii) only c. (i), (ii), and (iii) d. (iii) only QUESTION 29 Suppose that a competitive market is initially in equilibrium. Then demand increases. If entering firms face the same costs as existing firms and sufficient resources are...
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...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm:...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
These two questions please Question 15 (1 point) When entry and exit behaviour or firms in an industry does not a...
These two questions please
Question 15 (1 point) When entry and exit behaviour or firms in an industry does not affect a firm's cost structure, what is the shape of the long-run market supply curve? It must be horizontal It must be upward. It is downward sloping then upward sloping. It is upward sloping then downward sloping. Question 18 (1 point) Figure 14-1 ATC AVC סס ס 0, 80, Quantity Refer to Figure 14-1. When price is equal to P3,...
QUESTION 9 The perfectly competitive firm faces a downward sloping demand curve. constant marginal costs. a...
QUESTION 9 The perfectly competitive firm faces a downward sloping demand curve. constant marginal costs. a horizontal supply function. perfectly elastic demand. QUESTION 10 The short-run industry supply curve slopes up because the law of diminishing marginal product applies in the short run. wages increase as the industry increases output. the firms eventually experience diseconomies of scale. the higher price is needed to get more firms to enter the industry.
PART III COVERS CLO 5 uan 4 marks Question 1 Choose the correct answer. Each question...
PART III COVERS CLO 5 uan 4 marks Question 1 Choose the correct answer. Each question carries 0.5 mark 1. If a firm can change market prices by altering its output, then it A. Has market power. B. Faces a flat demand curve. C. Is a price taker D. Engages in marginal cost pricing. 2. If economic profits are earned in a competitive market, then over time: A. Additional firms will enter the market. B. The market supply curve will...
please answer all 16. To say that a firm is a price taker means that: a....
please answer all
16. To say that a firm is a price taker means that: a. the firm's demand curve is perfectly inelastic b. the firm's marginal revenue curve is downward sloping c. the firm's average total cost curve is horizontal d. the firm can alter its output without influencing price e. all of the above 17. In a perfectly competitive market, the demand curve facing the firm is: a. identical to the market demand curve b. perfectly clastic even...
UUS ment_id 1332651_1&course id=_1773666 1&content_ide43267378 18 stepenuh Question completion Status QUESTION 16 In the long run...
UUS ment_id 1332651_1&course id=_1773666 1&content_ide43267378 18 stepenuh Question completion Status QUESTION 16 In the long run a firm will ext an industry if the market price is less than its break-even price shutdown price marginal cost fixed cost QUESTION 17 Different firms in a competitive industry will have differing shutdown they have different cost curves they are charging different prices they entered the indutry at different times they all have identical cost curves QUESTION 18 An industry's output is produced...
.Question Completion Status QUESTION 11 Suppose a firm doubles its employment of all inptuts in the long run. If th...
.Question Completion Status QUESTION 11 Suppose a firm doubles its employment of all inptuts in the long run. If this action more than doubles the amount of capital produced, then this firm is experiencing O Increasing returns to scale diminishing marginal returns o technological progress O positive marginal revenue QUESTION 12 When input prices are fixed, decreasing returns to scale implies that the long run average cost curve is downward sloping O horizontal upward sloping O Ushaped QUESTION 13 If...
a declines continually as output increases. Question 8 In perfectly competitive long-run equilibrium: all firms make positive economic profits. all firms produce at the minimum point of their average total cost curves. the industry supply curve must be upward sloping. all firms face the same price, but the value of marginal cost will vary directly with firm size. Question 9
QUESTION 25 Table 14-11 Suppose that a firm in a competitive Price Quantity Total cost Refer to Table 14-11. The marginal revenue from producing the Sth unit equals (i) $6. (ii) the price. (iii) the marginal cost a. (i) only b.(i) and (ii) only c. (i), (ii), and (iii) d. (iii) only QUESTION 29 Suppose that a competitive market is initially in equilibrium. Then demand increases. If entering firms face the same costs as existing firms and sufficient resources are...
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...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
These two questions please
Question 15 (1 point) When entry and exit behaviour or firms in an industry does not affect a firm's cost structure, what is the shape of the long-run market supply curve? It must be horizontal It must be upward. It is downward sloping then upward sloping. It is upward sloping then downward sloping. Question 18 (1 point) Figure 14-1 ATC AVC סס ס 0, 80, Quantity Refer to Figure 14-1. When price is equal to P3,...
QUESTION 9 The perfectly competitive firm faces a downward sloping demand curve. constant marginal costs. a horizontal supply function. perfectly elastic demand. QUESTION 10 The short-run industry supply curve slopes up because the law of diminishing marginal product applies in the short run. wages increase as the industry increases output. the firms eventually experience diseconomies of scale. the higher price is needed to get more firms to enter the industry.
PART III COVERS CLO 5 uan 4 marks Question 1 Choose the correct answer. Each question carries 0.5 mark 1. If a firm can change market prices by altering its output, then it A. Has market power. B. Faces a flat demand curve. C. Is a price taker D. Engages in marginal cost pricing. 2. If economic profits are earned in a competitive market, then over time: A. Additional firms will enter the market. B. The market supply curve will...
please answer all
16. To say that a firm is a price taker means that: a. the firm's demand curve is perfectly inelastic b. the firm's marginal revenue curve is downward sloping c. the firm's average total cost curve is horizontal d. the firm can alter its output without influencing price e. all of the above 17. In a perfectly competitive market, the demand curve facing the firm is: a. identical to the market demand curve b. perfectly clastic even...
UUS ment_id 1332651_1&course id=_1773666 1&content_ide43267378 18 stepenuh Question completion Status QUESTION 16 In the long run a firm will ext an industry if the market price is less than its break-even price shutdown price marginal cost fixed cost QUESTION 17 Different firms in a competitive industry will have differing shutdown they have different cost curves they are charging different prices they entered the indutry at different times they all have identical cost curves QUESTION 18 An industry's output is produced...
.Question Completion Status QUESTION 11 Suppose a firm doubles its employment of all inptuts in the long run. If this action more than doubles the amount of capital produced, then this firm is experiencing O Increasing returns to scale diminishing marginal returns o technological progress O positive marginal revenue QUESTION 12 When input prices are fixed, decreasing returns to scale implies that the long run average cost curve is downward sloping O horizontal upward sloping O Ushaped QUESTION 13 If...
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