Which of the following is true of a profit-maximizing competitive firm in the short run? The...
Which of the following is true of a profit-maximizing competitive firm in the short run?
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The firm produces at the point where price is equal to marginal cost. |
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The firm produces at the point where average cost is at its minimum point. |
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The demand curve faced by each firm in the industry is downward sloping. |
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The firm always makes a zero economic profit. |
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The firm suffers a deadweight loss. |
Homework Answers
The firm produces at a point where price is equal to marginal cost is true of a profit maximizing competitive firm in the short run. Hence,option(A) is correct.
Add Answer to:
Which of the following is true of a profit-maximizing
competitive firm in the short run?
The...
Please answer the following 3 questions: QUESTION 1 In the short run, the perfectly competitive firm...
Please answer the following 3 questions:
QUESTION 1 In the short run, the perfectly competitive firm will always earn an economic profit when P MC. P ATC. P > AVC P > ATC. QUESTION 2 The demand curve faced by a perfectly competitive industry is horizontal slopes upward. has no slope. slopes downward. QUESTION 3 The short-run supply curve of a perfect competitor is its marginal revenue curve. its marginal cost curve equal to or above the minimum point on...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
Which of the following is true with respect to a perfectly competitive firm? It will make...
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
Which of the following statements is true of a monopolistically competitive firm? a. It produces more...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
in the drop down menu is possible or not possible A perfectly competitive firm's marginal cost...
in the drop down menu is possible or not possible
A perfectly competitive firm's marginal cost curve is upward sloping but not vertical. If the price of the product increases, in the short run it is for the firm's economic profit to decrease (or for its economic loss to increase) Which of the following statements explain the above argument? (Check all that apply.) A. It is not possible if the firm produces at any point on the marginal cost curve....
Please answer both of the following questions. A perfectly competitive firm is maximizing profits in the...
Please answer both of the following questions.
A perfectly competitive firm is maximizing profits in the short run. This implies that the firm is earning the most economic profits possible, which o can be positive, negative, or zero. O exist at the point at which price equals total cost. O must be positive. o must be either zero or positive. QUESTION 31 A constant-cost industry O has a horizontal long-run supply curve. O generates increasing profits whenever demand increases because...
a) In a monopoly, the profit maximizing quantity occurs where ...
a) In a monopoly, the profit maximizing quantity occurs where [choose] ["marginal cost", "average cost", "total cost", "variable cost"] equals [choose] ["marginal revenue", "the minimum possible value", "zero", "average cost"] . b) The existence of [choose] ...
A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm’s total...
A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm’s total cost is: TC = a + bQ2. Use only the cost curve given. Determine mathematically the level of output the firm will produce in the long run. Show mathematically if this amount differs from the amount of output the firm would produce in the short run. Explain why a perfectly competitive firm earns zero economic profit in the long run.
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is...
The demand curve for a perfectly competitive firm options: is upward sloping. is perfectly horizontal. is perfectly vertical. maybe downward or upward sloping, depending upon the type of product offered for sale. In the short run, the best policy for a perfectly competitive firm is to Question 17 options: shut down its operation if the price ever falls below average total cost. produce and sell its product as long as price is greater than average variable cost. shut down its...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm:...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
Please answer the following 3 questions:
QUESTION 1 In the short run, the perfectly competitive firm will always earn an economic profit when P MC. P ATC. P > AVC P > ATC. QUESTION 2 The demand curve faced by a perfectly competitive industry is horizontal slopes upward. has no slope. slopes downward. QUESTION 3 The short-run supply curve of a perfect competitor is its marginal revenue curve. its marginal cost curve equal to or above the minimum point on...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
in the drop down menu is possible or not possible
A perfectly competitive firm's marginal cost curve is upward sloping but not vertical. If the price of the product increases, in the short run it is for the firm's economic profit to decrease (or for its economic loss to increase) Which of the following statements explain the above argument? (Check all that apply.) A. It is not possible if the firm produces at any point on the marginal cost curve....
Please answer both of the following questions.
A perfectly competitive firm is maximizing profits in the short run. This implies that the firm is earning the most economic profits possible, which o can be positive, negative, or zero. O exist at the point at which price equals total cost. O must be positive. o must be either zero or positive. QUESTION 31 A constant-cost industry O has a horizontal long-run supply curve. O generates increasing profits whenever demand increases because...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
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