The firms will maximize profit by equating price with MC.
When Price is $15, firm 1 produces 20 units and firm 2 produces 8 units, hence industry supply = 20 + 8 = 28.
When Price is $18, firm 1 produces 25 units and firm 2 produces 10 units, hence industry supply = 25 + 10 = 35.
18. (Figure: Increasing Costs) Price $40 Firm 1 30 MC AC 20 18 15 10 5...
QUESTION 15 Figure 5-5 11 Price - Demand 5 10 15 20 25 30 35 40 45 50 55 Quantity Refer to Figure 5-5. Using the midpoint method, demand is unit elastic between prices of O a. $20 and $40. b.$50 and $70 c. $40 and $60 d. $40 and $50.
Question 37 (1 point) Figure 8-7 Price 522 o 5 10 15 20 25 30 35 40 45 50 Quantity Refer to Figure 8-7. What is the deadweight loss? ОООО
MR Demand 10 20 30 40 50 60 70 80 Duantity Refer to Figure 15-20. The deadweight loss caused by a profit-maximizing monopoly amounts to a. $900. b. $225. c. $1,350. d. $450 Price MC 4+ F + 1 + 2 + 4 Demand 10 11 12 3 5 6 7 8 9 Quantity Refer to Figure 15-11. Which area represents the deadweight loss from monopoly? a. H b. A+B+C+D+F+I+J+H O c. S+H d. J Price MC Demand iMR: 10...
$19 MC 1 15 AC 11 10 AVC 40 9 The above figure shows the cost curves for a competitive firm. If the market price is $10 per unit, the firm will earn profits of A) $0. B) $4. C) $40. D) $400.
Cost, $ MC 30 AC 20 18 AVC 10 50 80 9 for the The graph above shows the cost curves for a competitive firm. The price must exceed firm to operate in the short run. O $10 O $0 O $18 O $20
Question 36 Figure 6-32 Price 20 ELENTEND 10 20 30 40 50 60 70 80 100 Quantity Refer to Figure 6-32. Which of following statements is true based upon the conditions in the market? a shortage will develop when a price ceiling is imposed at a price of S10. a surplus will develop when a price floor is imposed at a price of $8. a surplus will develop when a price floor is imposed at a price of $12. a...
Question 10 1 pts $. pc MC 50 - AC 40 1 AVC 30 14 1 9 10 23 25 33 The figure above shows the short-run cost curves for a firm in a perfectly competitive market. The firm should shut down production in the short run if price is below $30 price is below $40. price is below $50. price is above AC
pleaser answer all four questions. thank you. 10 MC 8 Price and costs (dollars per unit) ATC 6 4 2. MR D 0 2 4 6 8 10 12 Quantity (units per year) The graph above describes a profit-maximizing monopolist. If the monopolist charges a price of $4, how many units will the monopolist sell? O4 O 6 o 8 Assume a perfectly competitive industry making peanuts is in long-run equilibrium. The price per pound of peanuts is $2. Next,...
Cost, $ MC 30 AC 20 18 AVC G 10 50 80 9 The graph above shows the cost curves for a competitive firm. In the short run, the firm will shut down if price falls below O 50 O $10 O $18 $20
Costs MC AC 20 18 AVC 10 50 80 9 The graph above shows the cost curves for a competitive firm. If the profit-maximizing level of output is 80, price is equal to O $18 O $10 O $30 O $20