1) A perfectly competitive firm sells 200 units at a market price of $40 per unit....
1) A perfectly competitive firm sells 200 units at a market price of $40 per unit. Its marginal cost is $50, and it incurs a variable cost of $10,000. To improve its profit or loss situation, this firm should ?
a) shut down
b) raise the price to $45 per unit
| c. |
reduce
output but not to zero
d.
increase
output sold to 300 units
e.
continue to produce the present level of output
|
Homework Answers
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1) A perfectly competitive firm sells 200 units at a market
price of $40 per unit....
Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000...
Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output, marginal cost is $140 and increasing, and average variable cost is $120. Assuming it wants to maximize its profits, it should: u increase output. o decrease output, but not shut down. u maintain its current output rate. shut down.
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit,...
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For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At...
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
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Question 9.10 Consider a perfectly competitive firm. When the market price is greater than both the firm's marginal cost and average variable cost, the firm O A Is maximizing profits O BShould shut down O CShould increase its level of output O D Should reduce its level of output
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The following graph shows the daily cost curves of a firm operating in a perfectly competitive...
The following graph shows the daily cost curves of a firm operating in a perfectly competitive market. Suppose the market price for the good is $80 per unit Use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss at the market price of $80 per unit if the firm chooses to produce the profit-maximizing quantity of output Profit or Loss PRICE AND COST (Dollars) QUANTITY (Thousands of units) At the market price of $80...
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a firm in perfectly competitive market sells all its products
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(1)A firm in a perfectly competitive market sells all its product (Q) at a constant price (P) of $60. Suppose the total cost function (TC) for this firm is described by the following equation: 2 3 TC(Q) = 128 +690 - 140 + Q (a)Form the profit function and determine the output that maximizes the firm's profit. Evaluate the second order condition to assure that...
Assume a perfectly competitive firm sells its output for $150 per unit. At its current 2,000 units of output, marginal cost is $140 and increasing, and average variable cost is $120. Assuming it wants to maximize its profits, it should: u increase output. o decrease output, but not shut down. u maintain its current output rate. shut down.
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
Question 9.10 Consider a perfectly competitive firm. When the market price is greater than both the firm's marginal cost and average variable cost, the firm O A Is maximizing profits O BShould shut down O CShould increase its level of output O D Should reduce its level of output
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
The following graph shows the daily cost curves of a firm operating in a perfectly competitive market. Suppose the market price for the good is $80 per unit Use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss at the market price of $80 per unit if the firm chooses to produce the profit-maximizing quantity of output Profit or Loss PRICE AND COST (Dollars) QUANTITY (Thousands of units) At the market price of $80...
a firm in perfectly competitive market sells all its products
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