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Question 5 The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses. -- Fill in the following blanks with A = above, E = equal to, B = below. -- From the previous statement, we know that the market price of fetilizer is Blank 1 average total cost, Blank 2 average variable cost, and Blank 3 marginal cost. 2 points Question 6 Fill in the following blanks with U =...
are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly...
XYZ company operates in a perfectly competitive market where the current market price is $10. Currently the firm is producing 200 units at an average variable cost of $8, an average total cost of $12 and a marginal cost of $10. a. Is the situation described above a short-run equilibrium for XYZ? Explain. b. What is XYZ’s profit/loss? c. What is XYZ’s producer surplus? d. Should XYZ continue to produce in this situation? Explain. e. Assuming that XYZ is ‘average’...
XYZ company operates in a perfectly competitive market where the current market price is $10. Currently, the firm is producing 200 units at an average variable cost of $8, and average total cost of $12 and a marginal cost of $10. (2) is the situation described above a short-run equilibrium for XYZ? Explain. (2) what is XYZ's profit loss? (2) What is XYZ's producer surplus? (2) Should XYZ continue to purchase in this situation? Explain (2) Assuming that XYZ 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...
[1] A perfectly competitive aluminum producer is currently producing a quantity where the market price is $0.67 per pound (i.e., 67 cents per pound), average total cost is $0.70, and average variable cost of $0.60 (which corresponds to the minimum point on the average variable cost curve). Would you recommend this firm expand output, contract output, or shut down in the short-run? Provide a graph to illustrate your answer. [2] Suppose the local crawfish market is perfectly competitive, with the...
Please help with these questions Question 21 0.4 pts The market for candles is perfectly competitive and is currently in equilibrium. What will happen if candles are later linked to more houses catching on fire? In the short run, firms will incur economic losses, but in the long run, firms will enter the market, bringing economic profits back up to zero In the short run, firms will experience economic profits, but in the long run, firms will enter the market,...
In a perfectly competitive market, the market supply curve is a. the vertical sum of all the individual firms' supply curves. b. always a horizontal line. c. the marginal cost curve above average total cost for a representative firm. d. the horizontal sum of all the individual firms' supply curves. Table 14-11 Suppose that a firm in a competitive market faces the following prices and costs: Price Quantity Total Cost $5 $3 $5 $8 $12 $17 $5 $23 Refer to...
Suppose that in a perfectly competitive market, the market price is $10. A firm in that market has marginal cost of $10, average total cost of $12, and it is producing 100 units. The firm is earning 51.000 in total economic profits and is maximizing economic profits. earning $200 in total economic profits and is maximizing economic profits. incurring $200 in total economic losses and is minimizing economic losses earning zero total economic profits and is not maximizing economic profits
In the long run, all of the firms in a perfectly competitive industry will: exit the industry if price is greater than average total cost. produce at an output level at which average total cost equals marginal cost. earn an economic profit greater than zero. O produce an output level at which price is greater than average total cost. Which statement about the differences between monopoly and perfect competition is INCORRECT? A monopoly will charge a higher price and produce...