Homework Answers
34. Ans: Is greater than P1 but less than P3.
Explanation:
A firm should remain in business even if at loss in the short run if price is greater than AVC and less than minimum ATC.
Thus, option [b] is correct answer.
35. Ans: $100
Explanation:
At price of $100, ATC = Price. So, profit is zero.
Thus, option [c] is correct answer.
Add Answer to:
AR Refer to Figure 14-3 from question 31. If the market price is $10, what is the firm's short-run economic profit?...
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price...
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC PS P4 P3 B1 Q1 02 Q3 04 Paarip Refer to Figure 14-6. Firms will shut down in the short run if the market price a. exceeds P3. b. is less than P1. c. is greater than P1 but less than P3. O d. exceeds P2. சிவவடானே 59 30 ...
30. Figure 14-2 мC ATC AVC Pa- Pb+ Pe Pd- Refer to Figure 14-2. If the market price is Pa, in the short run the fir...
30. Figure 14-2 мC ATC AVC Pa- Pb+ Pe Pd- Refer to Figure 14-2. If the market price is Pa, in the short run the firm will a. Earn zero economic profit. b. Suffer losses and will shut down. c Earn positive economic profit. d. Suffer losses but will remain open. 31. Figure 14-3 19 МС 27 4 16 15 14+ 13- ATC 1 234567 Duantib Refer to Figure 14-3. If the market price is $10, what is the firm's...
QUESTION 3 [20 Marks 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm...
QUESTION 3 [20 Marks 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm in a given market. Figure 1 MC ATC AVC 245 210 175 129 (a) Calculate the firm's total profit/loss. (b) Should this firm shut down in the short-run? Provide a reason for your answer. (c) What is this firm's shut-down price? d) What type of market stuctur is epreete tby igure 1? Consider the graph below, which indicates the demand and cost structures of...
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
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: AVC " a"* PRICE " a QQ: QQQ QUANTITY Refer to Figure 14-3. Firms would be encouraged to enter this market for all prices that exceed a. P1 b.P4 c. P2 d. P3- OOOO QUESTION 20 Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE ----- 1 4 5 2 3 QUANTITY Refer to Figure 14-1....
Help with 14-16 please. 14. A Monopoly: A. Will realize an economic profit if price exceeds...
Help with 14-16 please.
14. A Monopoly: A. Will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. Will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output c. Will realize an economic loss if MC intersects the down-sloping portion of MR D. Always realizes an economic profit. MC ATC AVC 15. At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph above will face: A. Average...
Question 2 1,000 pts Refer to the accompanying figure. This firm's short-run supply curve is represented...
Question 2 1,000 pts Refer to the accompanying figure. This firm's short-run supply curve is represented by Price and Cost MC ATC AVC the: $20.00 $15.00 $9.00 Quantity O marginal cost (MC) curve about $15. O Average available cost (AVC) curve about $15. O average total cost (ATC) curve above $20 O marginal cost (MC) curve about $8.
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual f...
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry b. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. c. Because the price is below the firm's average variable costs, the firms will shut down. d....
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC ATC 27 AVC P6 BA P3 P2 P1 01 02 03 04 os இகனாது Refer to Figure 14-5. When market price is P7, a profit-maximizing firm's short-run profits can be represented by the area P7 x Q5 b. P7 x Q3 (P7-P5) x Q3 d. We are unable to determine the firm's profits because the quantity that the firm would produce is not labeled...
Assume the market price is $10. a. What is the firm’s short-run economic profit? b. In...
Assume the market price is $10.
a. What is the firm’s short-run economic profit?
b. In the long run what do you expect to happen in this industry
(entry or exit). Why.
c. How does this long run adjustment effect the market? What
happens to equilibrium price and quantity?
d. How does this long run adjustment effect the firm? How do
their profits change?
MC ATC 2 3 4 5 6 7 8 paris
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC PS P4 P3 B1 Q1 02 Q3 04 Paarip Refer to Figure 14-6. Firms will shut down in the short run if the market price a. exceeds P3. b. is less than P1. c. is greater than P1 but less than P3. O d. exceeds P2. சிவவடானே 59 30 ...
30. Figure 14-2 мC ATC AVC Pa- Pb+ Pe Pd- Refer to Figure 14-2. If the market price is Pa, in the short run the firm will a. Earn zero economic profit. b. Suffer losses and will shut down. c Earn positive economic profit. d. Suffer losses but will remain open. 31. Figure 14-3 19 МС 27 4 16 15 14+ 13- ATC 1 234567 Duantib Refer to Figure 14-3. If the market price is $10, what is the firm's...
QUESTION 3 [20 Marks 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm in a given market. Figure 1 MC ATC AVC 245 210 175 129 (a) Calculate the firm's total profit/loss. (b) Should this firm shut down in the short-run? Provide a reason for your answer. (c) What is this firm's shut-down price? d) What type of market stuctur is epreete tby igure 1? Consider the graph below, which indicates the demand and cost structures of...
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
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: AVC " a"* PRICE " a QQ: QQQ QUANTITY Refer to Figure 14-3. Firms would be encouraged to enter this market for all prices that exceed a. P1 b.P4 c. P2 d. P3- OOOO QUESTION 20 Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE ----- 1 4 5 2 3 QUANTITY Refer to Figure 14-1....
Help with 14-16 please.
14. A Monopoly: A. Will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. Will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output c. Will realize an economic loss if MC intersects the down-sloping portion of MR D. Always realizes an economic profit. MC ATC AVC 15. At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph above will face: A. Average...
Question 2 1,000 pts Refer to the accompanying figure. This firm's short-run supply curve is represented by Price and Cost MC ATC AVC the: $20.00 $15.00 $9.00 Quantity O marginal cost (MC) curve about $15. O Average available cost (AVC) curve about $15. O average total cost (ATC) curve above $20 O marginal cost (MC) curve about $8.
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry b. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. c. Because the price is below the firm's average variable costs, the firms will shut down. d....
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC ATC 27 AVC P6 BA P3 P2 P1 01 02 03 04 os இகனாது Refer to Figure 14-5. When market price is P7, a profit-maximizing firm's short-run profits can be represented by the area P7 x Q5 b. P7 x Q3 (P7-P5) x Q3 d. We are unable to determine the firm's profits because the quantity that the firm would produce is not labeled...
Assume the market price is $10.
a. What is the firm’s short-run economic profit?
b. In the long run what do you expect to happen in this industry
(entry or exit). Why.
c. How does this long run adjustment effect the market? What
happens to equilibrium price and quantity?
d. How does this long run adjustment effect the firm? How do
their profits change?
MC ATC 2 3 4 5 6 7 8 paris
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