Homework Answers
In a perfectly competitive firm, firm's profit = 0. Each firm earns normal profit in the long run. Firm would shut down its operation if price level falls below AVC.
In the short run, firm charges P = MC and not in long run.
So, firm may charge P = minimum point of AVC. However, at this level, the firm makes economic losses.
Option 5th is correct
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Afirm in a perfectly competitive market will choose q* in the long run such that price...
A firm in a perfectly competitive market will choose q' such that price is equal to...
A firm in a perfectly competitive market will choose q' such that price is equal to MC AFC O AC AVC Cannot be determined from the information
A firm in a perfectly competitive market will choose q* such that price is equal to...
A firm in a perfectly competitive market will choose q* such that price is equal to O AVC O AC MC O Cannot be determined from the information O AFC
When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter...
When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter the market. O firms have an incentive to leave the market. O no firm has an incentive to enter or leave the market. When a firm operating in a perfectly competitive market is experiencing losses, it should continue operations if: O P< AVC O P=AVC O P > AVC If, in a perfectly competitive market, P= (a firm's) ATC, then the firm: earns an...
Multiple Choice - Choose the correct alternative 1. The long-run competitive market supply curve is: a)...
Multiple Choice - Choose the correct alternative
1. The long-run competitive market supply curve is: a) The portion of the firms MC curve that is above the ATC curve b) The portion of the firms MC curve that is above the AVC curve c) The horizontal summation of all the firm's short-run supply curves d) A curve that is equal to the minimum of ATC e) a) and d) 2. Suppose the firms production process is given by Q =...
Apple farmers are in a perfectly competitive industry. If the apple market is in a long-run...
Apple farmers are in a perfectly competitive industry. If the apple market is in a long-run equilibrium which of the following must be true? Select one: e a. P > MR = MC = AVC b. P = MR = MC = ATC. O c. P = MR = MC = AVC. d. PMR = MC > ATC
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum poin...
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum point of the MC curve. b. the minimum point of the AFC curve. c. the minimum point of the ATC curve. the minimum point of the AVC curve the minimum point of the AR curve. Spage Finish attempt W 4 5 6 7
Each firm in a perfectly competitive market has long run average cost represented as AC(q) =...
Each firm in a perfectly competitive market has long run average cost represented as AC(q) = 100q- 10+100/q. Long run marginal cost is MC=200q-10. The market demand is Qd = 2150-5P. Find the long run equilibrium output per firm, q*, the long run equilibrium price, P*, and the number of firms in the industry, n*. P = 190; Q = 1200; q =1 , n = 1200
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i) The long run cost function for each firm in a perfectly competitive market is c(q) = 2^1.5+16q^0.5, LMC = 1.59^0.5+ 8q^-0.5, market demand curve is Q=1600-2p. Find price (p) of output and the level of output (q) produced by the firm in a long run equilibrium. Find the long run average cost curve for the firm. ii) what happens in the long run if the market demand curve shifts to Q=160-20p?/ -A competitive industry is in long run equilibrium....
In the long run, the price for a perfectly competitive firm O A. will allow for...
In the long run, the price for a perfectly competitive firm O A. will allow for positive economic profits. O B. will be determined by the firm's supply and demand curves. O c. will equal LRMC where LRMC is at a minimum. OD. will equal the minimum LRAC.
For a perfectly competitive market made up of firms represented in the graph below, what is...
For a perfectly competitive market made up of firms represented in the graph below, what is the long run equilibrium price of the good? Cost ($) MC ATC AVC $16 $14 $12 $10 Quantity $14 $10 $12 $16 For a perfectly competitive market made up of firms represented in the graph below, if the price is $14, Cost ($) MC ATC $16 AVC - $14 $12 $10 Quantity The firm is operating at its minimum long run average total cost....
A firm in a perfectly competitive market will choose q' such that price is equal to MC AFC O AC AVC Cannot be determined from the information
A firm in a perfectly competitive market will choose q* such that price is equal to O AVC O AC MC O Cannot be determined from the information O AFC
When a perfectly competitive market is in long-run equilibrium: O firms have an incentive to enter the market. O firms have an incentive to leave the market. O no firm has an incentive to enter or leave the market. When a firm operating in a perfectly competitive market is experiencing losses, it should continue operations if: O P< AVC O P=AVC O P > AVC If, in a perfectly competitive market, P= (a firm's) ATC, then the firm: earns an...
Multiple Choice - Choose the correct alternative
1. The long-run competitive market supply curve is: a) The portion of the firms MC curve that is above the ATC curve b) The portion of the firms MC curve that is above the AVC curve c) The horizontal summation of all the firm's short-run supply curves d) A curve that is equal to the minimum of ATC e) a) and d) 2. Suppose the firms production process is given by Q =...
Apple farmers are in a perfectly competitive industry. If the apple market is in a long-run equilibrium which of the following must be true? Select one: e a. P > MR = MC = AVC b. P = MR = MC = ATC. O c. P = MR = MC = AVC. d. PMR = MC > ATC
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum point of the MC curve. b. the minimum point of the AFC curve. c. the minimum point of the ATC curve. the minimum point of the AVC curve the minimum point of the AR curve. Spage Finish attempt W 4 5 6 7
i) The long run cost function for each firm in a perfectly competitive market is c(q) = 2^1.5+16q^0.5, LMC = 1.59^0.5+ 8q^-0.5, market demand curve is Q=1600-2p. Find price (p) of output and the level of output (q) produced by the firm in a long run equilibrium. Find the long run average cost curve for the firm. ii) what happens in the long run if the market demand curve shifts to Q=160-20p?/ -A competitive industry is in long run equilibrium....
In the long run, the price for a perfectly competitive firm O A. will allow for positive economic profits. O B. will be determined by the firm's supply and demand curves. O c. will equal LRMC where LRMC is at a minimum. OD. will equal the minimum LRAC.
For a perfectly competitive market made up of firms represented in the graph below, what is the long run equilibrium price of the good? Cost ($) MC ATC AVC $16 $14 $12 $10 Quantity $14 $10 $12 $16 For a perfectly competitive market made up of firms represented in the graph below, if the price is $14, Cost ($) MC ATC $16 AVC - $14 $12 $10 Quantity The firm is operating at its minimum long run average total cost....
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