Homework Answers
As some firms are making non-zero and positive economic profits so,this will attract new firms to the market in the long run which will increase the market output and increase the average cost and profits will keep decreasing to the point where the Price is equal to the minimum ATC so that all the firms will earn zero profits in the long run and the shape of the long run supply curve in this industry will be positive sloping.
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1. A competitive industry is comprised of 20 firms, 6 of which earn profits. What can...
Consider a perfectly competitive market for titanium. Assume that all firms in the industry are identical and...
Consider a perfectly competitive market for titanium. Assume that all firms in the industry are identical and have the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Assume also that it does not matter how many firms are in the industry Tool Tip: Place the mouse cursor over orange square points on the MC curve to see coordinates. COST PER UNIT IDollars per pound) 10 MC ATC AVC 0 5...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic profits. negative economic profits. Positive, zero, or negative economic profits. QUESTION 8 Which of the following statements best describes firms under monopolistic competition? Profits will be positive in the long run. Price always equals average variable cost. In the long run, positive economic profit will be eliminated. Marginal revenue equals minimum average total cost in the short run. QUESTION 9 Which of the following...
Consider the competitive market for copper. Assume that, regardless of how many firms are in the...
Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph 80 72 64 56 48 ATC 40 32 24 AVC 16 МС П 8 0 0 4 8 12 16 20 24 28 32 36 QUANTITY (Thousands of pounds) COSTS (Dollars per pound) 40 The...
Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC)
7. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. The following diagram shows the market demand for copper. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint:...
Аа Аа Consider a perfectly competitive market for titanium. Assume that all firms in the industry...
Аа Аа Consider a perfectly competitive market for titanium. Assume that all firms in the industry are identical and have the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Assume also that it does not matter how many firms are in the industry. Tool Tip: Place the mouse cursor over orange square points on the MC curve to see coordinates. COSTS Dollars per pound) 10 MC 9 8 7 ATC...
In the long run, all of the firms in a perfectly competitive industry will: exit the...
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...
What is the consequence of a firm in a competitive market selling a homogenous product? The...
What is the consequence of a firm in a competitive market selling a homogenous product? The firms capture some market power. The product sold by one firm is a perfect substitute for the products sold by other firms in the same industry. All the firms in the industry are the same size. The product sold by one firm is a perfect complement for the products sold by other firms in the industry. Firms in the industry can produce the same...
Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on
7. Short-run supply and long-run equilibrium Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph.The following diagram shows the market demand for copper.Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 20 firms in the market. (Hint:...
Question 10 1.5 pts Monopolistic competitive firms in the long run earn: positive economic profits. e...
Question 10 1.5 pts Monopolistic competitive firms in the long run earn: positive economic profits. e zero pure economic profits. negative economic profits. none of these.
First Blue blank choices: earn a positive profit, operate at a loss, earn zero profit, shut...
First Blue blank choices: earn a positive profit, operate at a
loss, earn zero profit, shut down.
Second Blue Blank Choices: enter, exit, neither enter nor
exit
Third Blue Blank Choices: negative, positive, zero
Last Blank: 10, 15, 20
7. Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and...
Consider a perfectly competitive market for titanium. Assume that all firms in the industry are identical and have the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Assume also that it does not matter how many firms are in the industry Tool Tip: Place the mouse cursor over orange square points on the MC curve to see coordinates. COST PER UNIT IDollars per pound) 10 MC ATC AVC 0 5...
Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph 80 72 64 56 48 ATC 40 32 24 AVC 16 МС П 8 0 0 4 8 12 16 20 24 28 32 36 QUANTITY (Thousands of pounds) COSTS (Dollars per pound) 40 The...
Аа Аа Consider a perfectly competitive market for titanium. Assume that all firms in the industry are identical and have the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Assume also that it does not matter how many firms are in the industry. Tool Tip: Place the mouse cursor over orange square points on the MC curve to see coordinates. COSTS Dollars per pound) 10 MC 9 8 7 ATC...
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...
Question 10 1.5 pts Monopolistic competitive firms in the long run earn: positive economic profits. e zero pure economic profits. negative economic profits. none of these.
First Blue blank choices: earn a positive profit, operate at a
loss, earn zero profit, shut down.
Second Blue Blank Choices: enter, exit, neither enter nor
exit
Third Blue Blank Choices: negative, positive, zero
Last Blank: 10, 15, 20
7. Short-run supply and long-run equilibrium Consider the competitive market for titanium. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and...
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