Q18
Answer
Option A
It moves from A to B
A perfectly competitive market in equilibrium at MC=P
at point A
A monopoly is in equilibrium at MR=MC level of output and charge
price from the demand curve, then Q=Q1 and P=P1, the equilibrium is
at point B
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Q20
ANswer
Option A
Q=6
P=$42 and ATC=30
Profit=(P-ATC)*Q
=(42-30)*6
=$72
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Q22
Option A
Economic efficiency is at MC=P where
Q=Q2 and P=P2
Question 18 Refer to the figure below. If a market changes from perfectly competitve to a...
[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry (market) and firm below, assume that P1 $6.80, P2 $3.80, Q1 1200, and Q2 870. Calculate parts (a) (h) below: Indvidual firm Price Industry Price MC Ms AR-MR MS2 P1 AC P2 AR2 MR2 Md Industry Output QFirm's Output (a) At Demand/P1, Firm's Total Revenue (TR) (b) At Demand/P1, Firm's Average Total Cost (ATC) use AC on graph (c) At Demand/P1, Profit (T) (d)...
Refer to the figure above, which shows domestic supply and demand. If P1 is equal to P2 (the world price) plus a tariff, then the social loss from the tariff is equal to: A) a + c B) b C) P1 ( Q3 - Q2) D) P2 [(Q2 - Q1) + (Q4 - Q3)] E) a + b + c Price Q1 Q2 Q3 Qs Quantity
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AR Refer to Figure 14-3 from question 31. If the market price is $10, what is the firm's short-run economic profit? a. $9 b. $15 c. $30 d. $50 34. Figure 14-6 the MC ,ATC AVC Q1 02 03 Qanty 04 Refer to Figure 14-6. Firms will be earn losses in the short run but will remain in business if the market price a. Exceeds P2 b. Is greater than P1 but less than P3. c. Exceeds P3, d. Is...
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