Homework Answers
A firm will enter the perfectly competitive market, if the price level in the market is high enough to earn the positive economic profit.
A firm will earn the positive economic if price lies above the average cost curve.
Marginal cost curve is supply curve for a perfectly competitive firm.
Hence, if price is higher than the P3, firm will encourage to enter the market.
Answer: option (c).
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QUESTION 13 Suppose a firm operating in a perfectly competitive market has the following cost curves:...
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price...
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC PS P4 P3 B1 Q1 02 Q3 04 Paarip Refer to Figure 14-6. Firms will shut down in the short run if the market price a. exceeds P3. b. is less than P1. c. is greater than P1 but less than P3. O d. exceeds P2. சிவவடானே 59 30 ...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC ATC 27 AVC P6 BA P3 P2 P1 01 02 03 04 os இகனாது Refer to Figure 14-5. When market price is P7, a profit-maximizing firm's short-run profits can be represented by the area P7 x Q5 b. P7 x Q3 (P7-P5) x Q3 d. We are unable to determine the firm's profits because the quantity that the firm would produce is not labeled...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: AVC " a"* PRICE " a QQ: QQQ QUANTITY Refer to Figure 14-3. Firms would be encouraged to enter this market for all prices that exceed a. P1 b.P4 c. P2 d. P3- OOOO QUESTION 20 Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE ----- 1 4 5 2 3 QUANTITY Refer to Figure 14-1....
Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC...
Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC P7 プ , AVC P3 P2 . Q1 02 03 04 05 gaantity Refer to Figure 14-5. In the short run, if the market price is P2, indavidual firms in a competitive industry will eam positive profits. zero profits. losses but will remain in business. losses and will shut down e
1. The graph below depicts the cost structure for a firm in a competitive market. a. When price rises from P2 to P3, th...
1. The graph below depicts the cost structure for a firm in a
competitive market.
a. When price rises from P2 to P3, the
firm finds that...
. Group of answer choices
expanding output to Q4 would leave the firm with losses.
it could increase profits by lowering output from Q3 to Q2.
if it produces at output level Q3 it will earn a positive
profit.
b.When price falls from P3 to P1, the firm
finds that
Group of answer...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: Price...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC Q1 02 03 04 05 Quantity Refer to Figure 14-5. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. At a market price of P2, the firm earns profits, not losses. b. At a market price of P2 the firm has losses, but the reference points in the figure don't identify the losses. C....
Saved This graph represents the cost and revenue curves of a firm in a perfectly competitive...
Saved This graph represents the cost and revenue curves of a firm in a perfectly competitive market. ATC MR Q1 Q2 Q3 According to the graph shown, the long-run output decision for this firm is: Multiple Choice o Q3, РЗ. o Q1, P2. o Q2 Р. o C o1, РІ.
QUESTION 17 Figure 14-4 Suppose a firm operating in a competitive market has the following cost...
QUESTION 17 Figure 14-4 Suppose a firm operating in a competitive market has the following cost curves: Price Q102 03 04 Refer to Figure 14-4. When price rises from P2 to P3, the firm finds that a marginal cost exceeds marginal revenue at a production level of Q2. b.expanding output to Q4 would leave the firm with losses c. it could increase profits by lowering output from Q3 to 02. d. if it produces at output level Q3 it will...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market Price „ATC Ps MC 1 AVC 1 1 11 VIL P2P 1 Q1 Q2 Q3 Q4 Quantity - 34. Refer to Figure 14-4. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. (P3-P) x Q2. b. (P2 - P.) ® Q2 c. At a market price of P2, the firm does not have losses. d. At a...
e 14- Suppose a firm operating in a competitive market has the following cost curves: MC...
e 14- Suppose a firm operating in a competitive market has the following cost curves: MC ATC AVC Pa Pb+ Pc Pd Refer to Figure 14-2. Which of the four prices corresponds to a firm earning positive economic profits in the short run? Pd Pa Pb Pc
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC PS P4 P3 B1 Q1 02 Q3 04 Paarip Refer to Figure 14-6. Firms will shut down in the short run if the market price a. exceeds P3. b. is less than P1. c. is greater than P1 but less than P3. O d. exceeds P2. சிவவடானே 59 30 ...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC ATC 27 AVC P6 BA P3 P2 P1 01 02 03 04 os இகனாது Refer to Figure 14-5. When market price is P7, a profit-maximizing firm's short-run profits can be represented by the area P7 x Q5 b. P7 x Q3 (P7-P5) x Q3 d. We are unable to determine the firm's profits because the quantity that the firm would produce is not labeled...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: AVC " a"* PRICE " a QQ: QQQ QUANTITY Refer to Figure 14-3. Firms would be encouraged to enter this market for all prices that exceed a. P1 b.P4 c. P2 d. P3- OOOO QUESTION 20 Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE ----- 1 4 5 2 3 QUANTITY Refer to Figure 14-1....
Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC P7 プ , AVC P3 P2 . Q1 02 03 04 05 gaantity Refer to Figure 14-5. In the short run, if the market price is P2, indavidual firms in a competitive industry will eam positive profits. zero profits. losses but will remain in business. losses and will shut down e
1. The graph below depicts the cost structure for a firm in a
competitive market.
a. When price rises from P2 to P3, the
firm finds that...
. Group of answer choices
expanding output to Q4 would leave the firm with losses.
it could increase profits by lowering output from Q3 to Q2.
if it produces at output level Q3 it will earn a positive
profit.
b.When price falls from P3 to P1, the firm
finds that
Group of answer...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC Q1 02 03 04 05 Quantity Refer to Figure 14-5. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. At a market price of P2, the firm earns profits, not losses. b. At a market price of P2 the firm has losses, but the reference points in the figure don't identify the losses. C....
Saved This graph represents the cost and revenue curves of a firm in a perfectly competitive market. ATC MR Q1 Q2 Q3 According to the graph shown, the long-run output decision for this firm is: Multiple Choice o Q3, РЗ. o Q1, P2. o Q2 Р. o C o1, РІ.
QUESTION 17 Figure 14-4 Suppose a firm operating in a competitive market has the following cost curves: Price Q102 03 04 Refer to Figure 14-4. When price rises from P2 to P3, the firm finds that a marginal cost exceeds marginal revenue at a production level of Q2. b.expanding output to Q4 would leave the firm with losses c. it could increase profits by lowering output from Q3 to 02. d. if it produces at output level Q3 it will...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market Price „ATC Ps MC 1 AVC 1 1 11 VIL P2P 1 Q1 Q2 Q3 Q4 Quantity - 34. Refer to Figure 14-4. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. (P3-P) x Q2. b. (P2 - P.) ® Q2 c. At a market price of P2, the firm does not have losses. d. At a...
e 14- Suppose a firm operating in a competitive market has the following cost curves: MC ATC AVC Pa Pb+ Pc Pd Refer to Figure 14-2. Which of the four prices corresponds to a firm earning positive economic profits in the short run? Pd Pa Pb Pc
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