Homework Answers
For profit to be made in the short run, the price ( also the MR curve here) should be above the AvC and ATC. Hence the MR curve should go above cost =7 to earn an economic profit in the short run.
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Shift the market price facing a competitive firm to a level where the firm makes an...
In the following figure, a monopolistically competitive firm is in the short run. In this scenario,...
In the following figure, a monopolistically competitive firm is in the short run. In this scenario, P < ATC, which means that this firm is making a loss. This short-run loss means that other firms will exit the market because they are making a loss as well. Shift a curve, or curves, to depict the effect of firms exiting this market in the long run. When shifting the curve, or curves, make sure not to change the slope of the...
The market for smartphones is characterized as a monopolistically competitive market, as companies differentiate their product...
The market for smartphones is characterized as a monopolistically competitive market, as companies differentiate their product from that of competitors through extensive marketing campaigns. One firm in this market is depicted below, and it is in long-run equilibrium. Most smartphone manufacturers are switching to the use of OLED screens in their smartphones because of the superior brightness and weight savings compared to alternative screen technology. This has resulted in an acute shortage of OLED screens, and it has driven up the...
Consider the following cost curve for a firm in a competitive industry where the market price...
Consider the following cost curve for a firm in a competitive industry where the market price equals $200 C = 1/3q3+4q+750 What is the firm's marginal cost (MC)? MC = At what level of output does the firm maximize profits (minimize losses)? Profit is maximized at __units of output. (Round your answer to two decimal places.) What is the firm's profit maximizing price? The profit-maximizing price is $___ In the short-run, this firm should produce ____ .
Given the following total cost function facing a perfectly competitive firm: TC = 500 + 10q2...
Given the following total cost function facing a perfectly competitive firm: TC = 500 + 10q2 (a) If price = 100, determine the level of output and profit earned by the firm in the short-run. (b) Based on your answer for part (a), should the firm continue to produce in the short- run? Why or why not? (c) Graphically illustrate a perfectly competitive firm earning a positive profit, zero profit, and incurring a loss in the short-run.
A firm in a monopolistically competitive market makes no economic profit in the long run because...
A firm in a monopolistically competitive market makes no economic profit in the long run because a. long-run price will be equal to long run average cost. b. long-run price will be equal to long run marginal cost. c. long-run marginal cost will be equal to long run marginal revenue. d. long-run marginal cost will be too high to make any economic profit.
Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves 1 Price MC ++++++++++ AT...
Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves 1 Price MC ++++++++++ ATC Refer to Figure 14-3. If the market price is $10, what is the firm's short-run economic profit? $15 B. $30 C. $9 D. $50
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest tha...
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand curve facing the individual firm will Multiple Choice shift up. shift down. not shift. slope downward.
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand...
A firm sells its product in a perfectly competitive market where other firms charge a price...
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are CIQ) = 60 + 14Q+ 20 a. How much output should the firm produce in the short run? C units b. What price should the firm charge in the short run? $O c. What are the firm's short-run profits? $D d. What adjustments should be anticipated in the long run? Entry will occur until economic...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not likely earn an economic profit in the long run. shut down in the short run if price is less than average variable cost. all of the above. QUESTION 6 A monopolistic competitive firm is inefficient because the firm: earns positive economic profit in the long run. is producing at an output corresponding to the condition that marginal cost equals price. is not maximizing its...
Through bond sales, anation's central bank pulls money out of circulation. One of the short-term effects...
Through bond sales, anation's central bank pulls money out of circulation. One of the short-term effects is to drive the price level from 100 down to 93.7. There are other short-term effects as well, but they fade in the long run, even as the price level drops still To refer to the graphing tutorial for this question type, please click here. AD < 0320 > VIEW SOLUTION ETED
In the following figure, a monopolistically competitive firm is in the short run. In this scenario, P < ATC, which means that this firm is making a loss. This short-run loss means that other firms will exit the market because they are making a loss as well. Shift a curve, or curves, to depict the effect of firms exiting this market in the long run. When shifting the curve, or curves, make sure not to change the slope of the...
The market for smartphones is characterized as a monopolistically competitive market, as companies differentiate their product from that of competitors through extensive marketing campaigns. One firm in this market is depicted below, and it is in long-run equilibrium. Most smartphone manufacturers are switching to the use of OLED screens in their smartphones because of the superior brightness and weight savings compared to alternative screen technology. This has resulted in an acute shortage of OLED screens, and it has driven up the...
Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves 1 Price MC ++++++++++ ATC Refer to Figure 14-3. If the market price is $10, what is the firm's short-run economic profit? $15 B. $30 C. $9 D. $50
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand curve facing the individual firm will Multiple Choice shift up. shift down. not shift. slope downward.
MC 0 Firm Industry The accompanying graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, as automatic market adjustments occur, the demand...
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are CIQ) = 60 + 14Q+ 20 a. How much output should the firm produce in the short run? C units b. What price should the firm charge in the short run? $O c. What are the firm's short-run profits? $D d. What adjustments should be anticipated in the long run? Entry will occur until economic...
Through bond sales, anation's central bank pulls money out of circulation. One of the short-term effects is to drive the price level from 100 down to 93.7. There are other short-term effects as well, but they fade in the long run, even as the price level drops still To refer to the graphing tutorial for this question type, please click here. AD < 0320 > VIEW SOLUTION ETED
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