For a perfectly competitive firm in the short run, if the firm produces the quantity at...
For a perfectly competitive firm in the short run, if the firm produces the quantity at which:
\ options: 1) P > ATC, then the firm is profitable. 2) P < ATC, then the firm breaks even. 3) P = ATC, then the firm incurs a loss. 4) P < ATC, then the firm is profitable.
Homework Answers
Profit = (P-ATC)*Q
When P > ATC, firm earns profit
When P = ATC, firm achieves breakeven
When P < ATC, firm is suffering Losses
option 1 is correct answer ie. P > ATC, then the firm is profitable
Add Answer to:
For a perfectly competitive firm in the short run, if the firm
produces the quantity at...
A perfectly competitive firm will earn a profit in the short run when it produces the...
A perfectly competitive firm will earn a profit in the short run when it produces the profit-maximizing quantity of output and the price is: 1) greater than marginal cost. 2) less than marginal cost. 3) less than average variable cost. 4) greater than average total cost.
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
Use the following graphs for a perfectly competitive market in the short run to answer the...
Use the following graphs for a perfectly competitive market in the short run to answer the next question. P MC ATC D MR Which of the following statements is true? Multiple Choice The firm is generating a loss. The firm should increase production in the short run. The firm is earning a normal profit The firm is making economic profits.
please explain! Price MC ATC AVC Quantity (per period) 2. (Figure: A Perfectly Competitive Firm in...
please explain!
Price MC ATC AVC Quantity (per period) 2. (Figure: A Perfectly Competitive Firm in the Short Run) Use Figure: A Perfectly Competitive Firm in the Short Run. The firm will produce in the short run if the price is greater than or equal to: A) F B) E C) N D) P.
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...
3. A firm in a perfectly competitive market will produce no output in the short run...
3. A firm in a perfectly competitive market will produce no output in the short run if the price is below $18 but will produce if the price is above $18. The smallest quantity they will produce in the short run is 8. Firms will earn 0 economic profit if the price is $74 and its profit maximizing quantity is 12 at that price. The firm’s fixed cost is $576. Assume the good can be produced in continuous quantities. Draw...
stions I through 10. Use the graph for a perfectly e graph for a perfectly competitive firm to answer questions I th...
stions I through 10. Use the graph for a perfectly e graph for a perfectly competitive firm to answer questions I throue ATC Price (P) S16 MC AVC $13 $10-- $8 $6.50 60 100 Quantity (Q) If price - $10, the profit-maximizing/loss-minimizing level of output (Q) is 1) total revenue is equal to 2) total cost is equal to 3) $ and the firm has a loss equal to 4) $ If this firm does not produce in the short...
8. A perfectly competitive firm is earning an economic profit. In the short run it should...
8. A perfectly competitive firm is earning an economic profit. In the short run it should In the long run it should A. shut down; expand B. produce where MC = MR; leave the industry C. produce where MC = MR; expand production D. shut down; exit the industry 9. In the long-run equilibrium of a competitive market with identical firms, what is the relationship between price P, marginal cost MC, and average total cost ATC? A. P> MC and...
If a firm operating in a perfectly competitive industry maximizes short-run profits by producing some quantity...
If a firm operating in a perfectly competitive industry maximizes short-run profits by producing some quantity of output q* > 0, which of the following must be true at that level of output? A) p > MC B) MR > MC C) p ≥ AVC D) All of the above E) B and C only
Please answer the following 3 questions: QUESTION 1 In the short run, the perfectly competitive firm...
Please answer the following 3 questions:
QUESTION 1 In the short run, the perfectly competitive firm will always earn an economic profit when P MC. P ATC. P > AVC P > ATC. QUESTION 2 The demand curve faced by a perfectly competitive industry is horizontal slopes upward. has no slope. slopes downward. QUESTION 3 The short-run supply curve of a perfect competitor is its marginal revenue curve. its marginal cost curve equal to or above the minimum point on...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
Use the following graphs for a perfectly competitive market in the short run to answer the next question. P MC ATC D MR Which of the following statements is true? Multiple Choice The firm is generating a loss. The firm should increase production in the short run. The firm is earning a normal profit The firm is making economic profits.
please explain!
Price MC ATC AVC Quantity (per period) 2. (Figure: A Perfectly Competitive Firm in the Short Run) Use Figure: A Perfectly Competitive Firm in the Short Run. The firm will produce in the short run if the price is greater than or equal to: A) F B) E C) N D) P.
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...
stions I through 10. Use the graph for a perfectly e graph for a perfectly competitive firm to answer questions I throue ATC Price (P) S16 MC AVC $13 $10-- $8 $6.50 60 100 Quantity (Q) If price - $10, the profit-maximizing/loss-minimizing level of output (Q) is 1) total revenue is equal to 2) total cost is equal to 3) $ and the firm has a loss equal to 4) $ If this firm does not produce in the short...
8. A perfectly competitive firm is earning an economic profit. In the short run it should In the long run it should A. shut down; expand B. produce where MC = MR; leave the industry C. produce where MC = MR; expand production D. shut down; exit the industry 9. In the long-run equilibrium of a competitive market with identical firms, what is the relationship between price P, marginal cost MC, and average total cost ATC? A. P> MC and...
Please answer the following 3 questions:
QUESTION 1 In the short run, the perfectly competitive firm will always earn an economic profit when P MC. P ATC. P > AVC P > ATC. QUESTION 2 The demand curve faced by a perfectly competitive industry is horizontal slopes upward. has no slope. slopes downward. QUESTION 3 The short-run supply curve of a perfect competitor is its marginal revenue curve. its marginal cost curve equal to or above the minimum point on...
Most questions answered within 3 hours.
-
In Netherland Dwarf rabbits, dwarf size is determined by allele
N, and normal-size by allele n....
asked 5 minutes ago -
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 20 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 23 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 30 minutes ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 31 minutes ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 36 minutes ago -
how
to use a for loop to iterate over the string below and print each
character...
asked 38 minutes ago -
Please type answer, Thanks.
Respond to the following in a minimum of 175
words:
Research industry...
asked 38 minutes ago -
Assume that all interest rates in the economy increase from 9
percent to 10 percent. Which...
asked 48 minutes ago -
Describe the function of a Change Control Board.
When calculating Planned Value (PV), what is the...
asked 53 minutes ago -
The customer help center in your company receives calls from
customers who need help with some...
asked 1 hour ago -
A manufacturer wished to compare the wearing qualities of two
different types of automobile tires, A...
asked 1 hour ago