If long run equilibrium price in a perfectly competitive market is $20 per unit. If government...
If long run equilibrium price in a perfectly competitive market is $20 per unit. If government imposes a $18 per unit price ceiling and firms continue to produce a positive level of output, this implies that for firms after the price ceiling:
a) Average total cost is lower than $18
b) Average fixed cost is lower than $18
c)Marginal cost is lower than average variable cost.
d)Average variable cost is lower than $18
Homework Answers
d)Average variable cost is lower than $18
(Firm does not produce of P < minimum of AVC. So, as firm is producing a positive level of output at $18 then it means that P > AVC. So, AVC < 18)
Add Answer to:
If long run equilibrium price in a perfectly competitive market is $20 per unit. If government...
If long run equilibrium price in a perfectly competitive market is $20 per unit. If government...
If long run equilibrium price in a perfectly competitive market is $20 per unit. If government imposes a $18 per unit price ceiling and firms continue to produce a positive level of output, this implies that for firms after the price ceiling O Average variable cost is lower than $18 O Average total cost is lower than $18 OMarginal cost is lower than average variable cost. O Average fixed cost is lower than $18
If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of...
If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of a donut Question 20 options: A) equals long-run average cost. B) is greater than marginal cost. C) is greater than long-run average cost. D) is greater than short-run average cost. The industry that produces zangs is in long-run equilibrium. Then the demand for zangs increases permanently. As a result, firms in the industry will ________. Some firms will ________ the industry, and the industry...
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...
8. Short-run supply and long-run equilibrium Consider the perfectly competitive market for copper. Assume that, regardless...
8. Short-run supply and long-run equilibrium Consider the perfectly 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. ATC COSTS (Dollars per pound) AVC MC D 0 Ft 0 3 6 9 12 15 18 21 24 27 QUANTITY OF OUTPUT (Thousands of pounds) 30 The...
5. Short-run supply and long-run equilibrium Consider the perfectly competitive market for steel. Assume that, regardless...
5. Short-run supply and long-run equilibrium Consider the perfectly competitive market for steel. 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. COSTS (Dollars per ton) + MC D AVC 0 10 90 100 20 30 40 50 60 70 80 QUANTITY (Thousands of tons) The following diagram shows the...
1) A perfectly competitive firm sells 200 units at a market price of $40 per unit....
1) A perfectly competitive firm sells 200 units at a market price of $40 per unit. Its marginal cost is $50, and it incurs a variable cost of $10,000. To improve its profit or loss situation, this firm should ? a) shut down b) raise the price to $45 per unit c. reduce output but not to zero d. increase output sold to 300 units e. continue to produce the present level of output
In the long run, all of the firms in a perfectly competitive industry will: produce an...
In the long run, all of the firms in a perfectly competitive industry will: produce an output level at which price is greater than average total cost. earn an economic profit greater than zero. produce at an output level at which average total cost equals marginal cost. exit the industry if price is greater than average total cost.
a declines continually as output increases. Question 8 In perfectly competitive long-run equilibrium: all firms make...
a declines continually as output increases. Question 8 In perfectly competitive long-run equilibrium: all firms make positive economic profits. all firms produce at the minimum point of their average total cost curves. the industry supply curve must be upward sloping. all firms face the same price, but the value of marginal cost will vary directly with firm size. Question 9
Which of the following statements has to be true in a perfectly competitive market? A) A...
Which of the following statements has to be true in a perfectly competitive market? A) A firm's marginal revenue equals price. B) A firm's average total cost is above price in the long run. C) A firm's average fixed cost rises in the short run. D) A firm's average variable cost is higher than price in the long run. E) Large firms have lower costs than small firms
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There are 80 firms in the industry, each of which has the cost curves shown on the following graph: MC ATC COST (Cents per bushel) AVC 0 5 10 15 20 25 30 35 40 45 50 Demand Supply Curve Equilibrium PRICE (Cents per bushel) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY OF OUTPUT (Thousands of bushels) in the short run....
If long run equilibrium price in a perfectly competitive market is $20 per unit. If government imposes a $18 per unit price ceiling and firms continue to produce a positive level of output, this implies that for firms after the price ceiling O Average variable cost is lower than $18 O Average total cost is lower than $18 OMarginal cost is lower than average variable cost. O Average fixed cost is lower than $18
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...
8. Short-run supply and long-run equilibrium Consider the perfectly 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. ATC COSTS (Dollars per pound) AVC MC D 0 Ft 0 3 6 9 12 15 18 21 24 27 QUANTITY OF OUTPUT (Thousands of pounds) 30 The...
5. Short-run supply and long-run equilibrium Consider the perfectly competitive market for steel. 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. COSTS (Dollars per ton) + MC D AVC 0 10 90 100 20 30 40 50 60 70 80 QUANTITY (Thousands of tons) The following diagram shows the...
In the long run, all of the firms in a perfectly competitive industry will: produce an output level at which price is greater than average total cost. earn an economic profit greater than zero. produce at an output level at which average total cost equals marginal cost. exit the industry if price is greater than average total cost.
a declines continually as output increases. Question 8 In perfectly competitive long-run equilibrium: all firms make positive economic profits. all firms produce at the minimum point of their average total cost curves. the industry supply curve must be upward sloping. all firms face the same price, but the value of marginal cost will vary directly with firm size. Question 9
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There are 80 firms in the industry, each of which has the cost curves shown on the following graph: MC ATC COST (Cents per bushel) AVC 0 5 10 15 20 25 30 35 40 45 50 Demand Supply Curve Equilibrium PRICE (Cents per bushel) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY OF OUTPUT (Thousands of bushels) in the short run....
Most questions answered within 3 hours.
-
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 1 minute from now -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 47 minutes ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 1 hour ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 2 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 2 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 5 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 5 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 5 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 5 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 5 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago