Homework Answers
In a perfectly competitive market, marginal revenue equals average revenue equals price.
Hence the correct option is
Price.
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Question 28 10 pts Clara produces and sells tomatoes in a perfectly competitive market. This implies...
The market for tomatoes is perfectly competitive. The equilibrium price in the market is $4.60/kg. When...
The market for tomatoes is perfectly competitive. The equilibrium price in the market is $4.60/kg. When Tom the tomato farmer produces 10,000kg he has an average total cost of $5/kg, a marginal cost of $4.20/kg, and an average variable cost of $4.20/kg. In the short run Tom should: Select one: a. shut down, because he is losing money. b. produce more tomatoes, because that will increase his profit. c. raise the price of tomatoes, because he is losing money. d....
Incorrect Question 2 0/5 pts Assume that a firm is operating in a perfectly competitive market...
Incorrect Question 2 0/5 pts Assume that a firm is operating in a perfectly competitive market at its shut-down level of output. Which of the following statements is false? Marginal cost and average revenue are equal Marginal cost and average variable cost are equal Marginal cost and marginal revenue are eque none of the options
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of...
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer...
QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer surplus that increases in a monopoly is transferred from the perfectly competitive market's deadweight loss o fixed cost. consumer surplus. long-run positive economic profit. QUESTION 22 If a monopolist lowers its price • the quantity demanded remains the same. the quantity demanded decreases the quantity demanded becomes zero. the quantity demanded increases. QUESTION 23 I a monopolist produces to a point at which marginal...
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market...
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the optimal output and profit for this firm. What is the optimal output of this perfectly (purely) competitive firm? (Round your answer to the nearest whole number.) Cost and revenue $2400 2200 2000 1800 Average 1600 total cost Marginal cost Average...
Question 36 (1 point) To maximize profit, firms in a perfectly competitive market should produce where:...
Question 36 (1 point) To maximize profit, firms in a perfectly competitive market should produce where: Omarginal revenue and marginal cost are equal. marginal revenue and average revenue are equal. average cost is at its minimum. Omarginal revenue and market price are equal.
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit,...
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output level of 1 comma 800 1,800 units. If the firm produces 1 comma 800 1,800 units, its average variable costs equal $ 7.00 7.00 per unit, and its average fixed costs equal $ 1.00 1.00 per unit. What is the firm's profit-maximizing (or...
If long run equilibrium price in a perfectly competitive market is $20 per unit. If government...
If long run equilibrium price in a perfectly competitive market is $20 per unit. If government imposes a $18 per unit price ceiling and firms continue to produce a positive level of output, this implies that for firms after the price ceiling: a) Average total cost is lower than $18 b) Average fixed cost is lower than $18 c)Marginal cost is lower than average variable cost. d)Average variable cost is lower than $18
Which of the following is true with respect to a perfectly competitive firm? It will make...
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
1. The S.S.K Allen Fabric Company sells cotton fabric in a perfectly competitive market at a...
1. The S.S.K Allen Fabric Company sells cotton fabric in a perfectly competitive market at a price of $4 per yard. Its marginal cost, average variable cost, and average total cost curves can be seen below: МС price ATC Yylo,o00 40,000 d-MR AVC 10,000 Find the profit-maximizing level of output and mark it 10,000 yards. Shade the area of profit earned by the firm. Is it positive or negative? reGatve ed here
The market for tomatoes is perfectly competitive. The equilibrium price in the market is $4.60/kg. When Tom the tomato farmer produces 10,000kg he has an average total cost of $5/kg, a marginal cost of $4.20/kg, and an average variable cost of $4.20/kg. In the short run Tom should: Select one: a. shut down, because he is losing money. b. produce more tomatoes, because that will increase his profit. c. raise the price of tomatoes, because he is losing money. d....
Incorrect Question 2 0/5 pts Assume that a firm is operating in a perfectly competitive market at its shut-down level of output. Which of the following statements is false? Marginal cost and average revenue are equal Marginal cost and average variable cost are equal Marginal cost and marginal revenue are eque none of the options
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
QUESTION 21 If a monopoly situation arises from a perfectly competitive market, the portion of producer surplus that increases in a monopoly is transferred from the perfectly competitive market's deadweight loss o fixed cost. consumer surplus. long-run positive economic profit. QUESTION 22 If a monopolist lowers its price • the quantity demanded remains the same. the quantity demanded decreases the quantity demanded becomes zero. the quantity demanded increases. QUESTION 23 I a monopolist produces to a point at which marginal...
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the optimal output and profit for this firm. What is the optimal output of this perfectly (purely) competitive firm? (Round your answer to the nearest whole number.) Cost and revenue $2400 2200 2000 1800 Average 1600 total cost Marginal cost Average...
Question 36 (1 point) To maximize profit, firms in a perfectly competitive market should produce where: Omarginal revenue and marginal cost are equal. marginal revenue and average revenue are equal. average cost is at its minimum. Omarginal revenue and market price are equal.
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
1. The S.S.K Allen Fabric Company sells cotton fabric in a perfectly competitive market at a price of $4 per yard. Its marginal cost, average variable cost, and average total cost curves can be seen below: МС price ATC Yylo,o00 40,000 d-MR AVC 10,000 Find the profit-maximizing level of output and mark it 10,000 yards. Shade the area of profit earned by the firm. Is it positive or negative? reGatve ed here
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