In the short-run, the efficient industry outcome under perfect competition occurs at the level of output where: (A) MB =...
In the short-run, the efficient industry outcome under perfect competition occurs at the level of output where:
(A) MB = P = MC.
(B) MB > P.
(C) P > MC.
(D) consumer surplus equals producer surplus
(E) P = AC.
Homework Answers
Answer
Option A
(A) MB = P = MC.
The efficient industry outcome is where the marginal benefit to the consumer is equal to marginal benefit to producer and that point the industry price is in equilibrium which is also called the Qd=Qs level of output.
Add Answer to:
In the short-run, the efficient industry outcome under perfect competition occurs at the level of output where: (A) MB =...
An monopolistic competition producer will produce at an optimal level of output that will maximize profits...
An monopolistic competition producer will produce at an optimal level of output that will maximize profits in the short-run when: a. MC = AC b. MC > AC c. MR = MC d. MC = AFC e. none of the above
pls review carefully and help pls In perfect competition in long-run equilibrium, can consumer surplus or...
pls review carefully and help pls In perfect competition in long-run equilibrium, can consumer surplus or producer surplus be increased? Explain your answer. In perfect competition in long-run equilibrium, consumer surplus or producer surplus _______ be increased because _______. A. can; a rise in price increases producer surplus and a fall in price increases consumer surplus B. cannot; to do so requires a movement away from the long-run equilibrium C. can; producing more increases both consumer surplus and producer surplus...
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output o...
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output of snuffboxes per day. a. What is the short-run supply curve for each snuff. box maker? What is the short-run supply curve for the market as a whole? b. Suppose the demand for total snuffbox production is given by Q 1,100-50P What is the equilibrium in...
The figure to the right depicts the short run outcome for a firm in a monopolitically...
The figure to the right depicts the short run outcome for a firm in a monopolitically competitive Industry To maximize profits this firm should produce units of output (Enter your response rounded to the nearest whole number) Monopolistically Competitive Firm MC 126 116 SRATC Dollar per un 2 D a MR 104 0 48 Output Which of the following applies to both monopolistic competition and perfect competition? OA. Non-price competition is common OB. All firms sell an identical product OC....
Part 1 (a) Which area represents consumer surplus under perfect competition? ABH? ACG? DCG? (b) Which...
Part 1
(a) Which area represents consumer surplus under perfect
competition? ABH? ACG? DCG?
(b) Which area represents producer surplus under perfect
competition? DCG? BHJD? ACG?
Part 2
(a) Which area represents consumer surplus under monopoly? BHJD?
ACG? ABH?
(b) Which area represents producer surplus under monopoly? BHJD?
CDG? ABH?
Part 3
Which area represents the deadweight loss associated with a
monopoly? HGJ? BHGC? HGFE?
Price and cost MC Market quantity
When do firms decide to shut down production in the short run under perfect competition? Explain...
When do firms decide to shut down production in the short run under perfect competition? Explain carefully. The market for bread in Brooklyn, NY is characterized by perfect competition. Firms and consumers are price takers and in the long run there is free entry and exit of firms in this industry. Illustrate with the help of a graph how the individual firm maximizes profit in the short run.
A Selecting output in perfect competition. Expected length of no more than 1 page IVA. For...
A Selecting output in perfect competition. Expected length of no more than 1 page IVA. For managers operating in perfect competition, explain and justify the rule MR = MC for selecting output to maximize economic profit. Explain the relationship between the P = MC and the rule MR = MC to select the output level. That is, compare and contrast the two rules in a perfectly competitive market. For managers to maximize economic profit: select an output level where MR...
CENGAGE | MINDTAP Aplia Homework: Monopoly 5. Monopoly outcome versus competition outcome Consider the daily market...
CENGAGE | MINDTAP Aplia Homework: Monopoly 5. Monopoly outcome versus competition outcome Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium, with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply curves (S - MC) in the market for hot dogs....
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average...
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopolistically competitive firm are shown in the figure below. Price/Cost (S) a. What is the firm's profit-maximizing output level? b. What is its profit-maximizing price? c. What is the firm's economic profit? d. What would the output level be that is productively efficient (minimizes ATC)? e. At what price and output level would this outcome be allocatively efficient? (Hint...
One thing that makes monopolistic competition similar to perfect competition is that, in the a short...
One thing that makes monopolistic competition similar to perfect competition is that, in the a short run, neither can earn positive economic profit. b long run, both are guaranteed positive economic profit. c long run, both will earn zero economic profit. d short run, both are guaranteed positive economic profit. e long run, both could earn positive economic profit, but monopolistic competitors will earn more than perfect competitors. Refer to the following graph to answer the following questions: In the...
The handmade snuffbox industry is composed of 100 identical firms, each having short-run total costs given by 9.8. STC 0.5104 +5 and short-run marginal costs given by SMC q+10 where q is the output of snuffboxes per day. a. What is the short-run supply curve for each snuff. box maker? What is the short-run supply curve for the market as a whole? b. Suppose the demand for total snuffbox production is given by Q 1,100-50P What is the equilibrium in...
The figure to the right depicts the short run outcome for a firm in a monopolitically competitive Industry To maximize profits this firm should produce units of output (Enter your response rounded to the nearest whole number) Monopolistically Competitive Firm MC 126 116 SRATC Dollar per un 2 D a MR 104 0 48 Output Which of the following applies to both monopolistic competition and perfect competition? OA. Non-price competition is common OB. All firms sell an identical product OC....
Part 1
(a) Which area represents consumer surplus under perfect
competition? ABH? ACG? DCG?
(b) Which area represents producer surplus under perfect
competition? DCG? BHJD? ACG?
Part 2
(a) Which area represents consumer surplus under monopoly? BHJD?
ACG? ABH?
(b) Which area represents producer surplus under monopoly? BHJD?
CDG? ABH?
Part 3
Which area represents the deadweight loss associated with a
monopoly? HGJ? BHGC? HGFE?
Price and cost MC Market quantity
CENGAGE | MINDTAP Aplia Homework: Monopoly 5. Monopoly outcome versus competition outcome Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium, with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply curves (S - MC) in the market for hot dogs....
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopolistically competitive firm are shown in the figure below. Price/Cost (S) a. What is the firm's profit-maximizing output level? b. What is its profit-maximizing price? c. What is the firm's economic profit? d. What would the output level be that is productively efficient (minimizes ATC)? e. At what price and output level would this outcome be allocatively efficient? (Hint...
Most questions answered within 3 hours.
-
(CO 2) A field can be added to a report to
values for two or more...
asked 1 hour ago -
Identify 3 research scenarios that might provide a low,
medium, and high degree of variability in...
asked 1 hour ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 2 hours ago -
Two small plastic spheres are given positive electrical charges.
When they are a distance of 15.4...
asked 2 hours ago -
An acidic solution containing gold ions is
electrolyzed, producing gaseous oxygen (from water) at the anode...
asked 2 hours ago -
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 3 hours ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 3 hours ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 4 hours ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 5 hours ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 4 hours ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 5 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 5 hours ago