32.Profit-maximizing firms enter a competitive market when existing firms in that market havea.total revenues that exceed fixed costs.b.total revenues that exceed total variable costs.c.average total costs that exceed average revenue.d.average total costs less than market price.ANS:D 33.In the short run, a firm operating in a competitive industry will shut down if price is 34.The competitive firm's short-run supply curve is that portion of the  35.A firm that exits its market has to pay 36.Patent and copyright laws are major sources ofa.natural monopolies.b.government-created monopolies.c.resource monopolies.d.antitrust regulation.ANS:B 37.When a single firm can supply a product to an entire market at a lower cost than could two ormore firms, the industry is called a 38.Which of the following is not correct? d.price equals marginal revenue.ANS:A40.For a profit-maximizing monopolist,a.P > MR = MC.b.P = MR = MC.c.P > MR > MC.d.MR < MC < P.ANS:A 33.Profit-maximizing firms enter a competitive market when existing firms in that market havea.total revenues that exceed fixed costs.b.total revenues that exceed total variable costs.c.average total costs that exceed average revenue.d.average total costs less than market price.ANS:D 34.For a construction company that builds houses, which of the following costs would be a fixed cost?
35.Which of the following statements is not correct? 36.At what level of output will average variable cost equal average total cost? 37.In the short run, a firm operating in a competitive industry will shut down if price isa.less than average total cost.b.less than average variable cost.c.greater than average variable cost but less than average total cost.d.greater than marginal cost.ANS:B 38.The competitive firm's short-run supply curve is that portion of the 39.A firm that exits its market has to pay Transcribed Image Text:Profit-maximizing firms enter a competitive market when existing firms in that market have Oa. total revenues that exceed fixed costs. Ob. average total costs that exceed average revenue. Oc. average total costs that are less than market price. Od. total revenues that exceed total variable costs. Q: 1) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its… A: Since you posted multiple questions, we will provide the answer for first one questions. Q: Assume perfect competition: Price: $72 Cost: TC = 6Q + 0.02Q^2. Solve for the profit-maximizing… A: Click to see the answer Q: Market Representative Firm MC A a MR = P $3.50 - ATC $2.50 - AVC 50,000 350 400 Quantity (Q) Output… A: At equilibrium, demand is equal to supply. So the equilibrium price is $ 3.50. At profit… Q: A competitive firm maximizes profit by choosing thequantity at whicha. average total cost is at its… A: Perfect competition refers to the market structure which is characterized by a large number of… Q: Letters are used to represent the terms used to answer this question: price(P), quantity of… A: Answer: Correct option: option (B) Explanation: A firm earns profit if the price is higher than the… Q: Aphria Corporation, a cannabis producer, is producing 30 units of output. Aphria Corporation is… A: The markets in an economy are considered to be beneficial for the growth, and development of the… Q: 4. Cherry Market The short run equilibrium market price in the perfectly competitive cherry market… A: Given Short-run cost function: SRTC=Q2+3Q+3 .... (1) Market price p*=9 Q: In a perfect competition with 100 identical firms, short-run market supply function of qS=150P+30… A: Given qS=150P+30 and market demand is Q=8000 -200P Number of firms = 100 Q: Kipcast Corporation is a firm in a perfectly competitive industry. Kipcast will not maximize profit… A: A perfectly competitive industry occurs when all industries sell identical products, market share… Q: 6. Deriving the short-run supply curve Consider the competitive market for sports jackets. The… A: A competitive market is one in which numerous producers compete with one another in the hopes of… Q: A firm sells its product in a perfect competitive market where other firms charges a price of $90… A: Since you have posted a question with multiple subparts, we will solve the first three subparts for… Q: At the profit-maximizing level of output, O marginal revenue equals average total cost. O marginal… A: ‘Maximizing Profit’ is considered to be a strong goal of a typical pay firm. This means selling a… Q: When marginal revenue is zero, in any type of market, P<MR. OP=MR. O a very small increase in price… A: There is no additional profit made from creating an additional unit when marginal revenue is zero. A… Q: Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: PRICE a… A: In a perfectly competitive market, there are many buyers and sellers. Firms produce identical goods… Q: firm in a competitive market receives $1,200 in total revenue and has marginal A: Here, AR average revenue MR marginal revenue TR total revenue P Price Q quantity Q: City Condos Construction, CCC, obtained a loan to purchase city land for a premium condominium… A: The above model hypothesizes an equilibrium of condo floors in a competitive market. MC = marginal… Q: Draw the graph for the firm (include ATV, AVC, MC, and MR curves) 2. At this output of Q = 100,… A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the… Q: Exercise 2: A perfectly competitive firm has cost function: AVC = 2Q + 4 (P: $, Q: kg). When the… A: Answer - Thank you for submitting the question. But we are authorized to solve only 3 sub parts for… Q: Multiple choice - microeconomics 41) Where is the competitive firm’s short-run supply curve… A: During the short run, only one factor is variable and the rest of all the factors are fixed factors.… Q: Bavarian Crystal Works designs and produces crystal wine decanters for export to international… A: The equilibrium price and equilibrium quantity of a good sold in the market are determined by the… Q: Basti’s Coffee operates in a competitive market. The short run price in the coffee market is equal… A: A competitive market is the one where where there are numerous producers and no individual producer… Q: Refer to Figure #1. The firm will shut down temporarily if it realizes that the market price is… A: 15) The firm would produce as long as it is above the minimum of average variable cost. In this… Q: A perfectly competitive firm produces 1000 units of burger in the long run. The marginal revenue is… A: Perfectly competitive firm- It accepts equilibrium price at which it sells goods and it is a price… Q: Fill in with the correct answer. Your firm has a price of $5, an average total cost of $7, and an… A: A firm's decision to shut down or operate depends on the following two factors: Price Cost Q: firm's faces a constant output price of $5. It produces 37 units and incurs a MC of $3. Which of the… A: Given, Price = $5 Quantity = 37 units MC = $3 Q: Consider the market for solar power. Assume the market is perfectly competitive and… A: In a market, the imposition of tax on related goods will have a significant impact on the demand and… Q: Differentiate between the following Implicit and explicit cost. Market shortage and market surplus… A: The given topics in the question are some of the important concepts of Economics that help in… Q: rfectly competitive market doubles the number of units of output sold, then total revenue will A.… A: The structure of the market being hypothetical and ideal where all consumers as well as producers… Q: Price £/unit MC AC D Q2 Qs Q1 Quantity/ week Figure 8 Demand and cost curves for a price-taker firm… A: A price-taker is a person or business that is forced to accept market prices because it lacks the… Q: 24. New firms will exit a perfectly competitive market when: Average variable costs are less than… A: In a Perfect Competition, firms sell homogenous products and are price takers. Q: Assume perfect competition: Price: $54 Cost: TC = 6Q + 0.03Q2 Solve for the profit-maximizing… A: Perfect Competition's profit maximizing quantity is at P = MC Q: A firm in a competitive market receives $1,160 in total revenue and has marginal revenue of $20. The… A: Given : In a perfectly competitive market, Total Revenue = $1160 Marginal Revenue = $20. Q: he table below shows the price and cost information for a firm that operates in a perfectly… A: Perfect competition is the market structure in which there are large number of buyers and sellers… Q: What is the term for the price at which the firm makes only normal profits? A) Shutdown price. O B)… A: Profit refers to the situation where the total revenue is greater than the total cost of production.… Q: Demand and supply are initially at Do and S, in the graph. Demand increases and new firms enter the… A: A graph which depicts relationship between quantity demanded and price of a commodity is known as a… Q: fa profit-maximizing firm in a perfectly competitive industry is currently experiencing an economic… A: A perfectly competitive firm is one which produces a homogenous good, and there are no barriers to… Q: 6. When new entrants into a competitive market have higher costs than existing firms, Group of… A: A perfectly competitive market is a market condition where there are large number of buyers and… Q: Profits are maximized at the output at which marginal cost equals marginal revenue. If the market… A: Each firm operates in the market to earn profit. The firm profit is maximized at the level of output… Q: Art's Garage operates in a perfectly competitive market. At the point where marginal cost equals… A: Given information, ATC= $25 AVC= $18 Price= $20 Q: A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What… A: Perfect competition is a market structure featuring more number of sellers and buyers in the market,… Q: A perfectly competitive industry has a large number of potential entrants. Each firm has an… A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the… Q: nue( A: A perfectly competitive market is considered to be a hypothetical market where the competition is at… Q: Marginal revenue is A) the change in total revenue from a one-unit increase in the quantity sold. B)… A: A perfectly competitive firm is a price taker. It means that a firm has to sell the quantities of a… Q: Camara's lawn-mowing service is a profit-maximizing competitive firm. Camara mows lawn for $27 each.… A: Click to see the answer Q: In the long-run (LR), a profit-maximizing firm in a perfectly competitive (p.c.) market is producing… A: In the long run, a firm profit maximization condition corresponds to AR=MR=AC=MC in the perfectly… Q: Shazam, a maker of magic wands, is selling in a purely competitive market. Its output is 600 wands,… A: Given, Output = 600 wands Price = $8 Marginal cost (MC) = $8 Average total cost = $20… Knowledge Booster Learn more about Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below. Recommended textbooks for you ENGR.ECONOMIC ANALYSIS ISBN:9780190931919 Author:NEWNAN Publisher:Oxford University Press Principles of Economics (12th Edition) ISBN:9780134078779 Author:Karl E. Case, Ray C. Fair, Sharon E. Oster Publisher:PEARSON Engineering Economy (17th Edition) ISBN:9780134870069 Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling Publisher:PEARSON Principles of Economics (MindTap Course List) ISBN:9781305585126 Author:N. Gregory Mankiw Publisher:Cengage Learning Managerial Economics: A Problem Solving Approach ISBN:9781337106665 Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor Publisher:Cengage Learning Managerial Economics & Business Strategy (Mcgraw-... ISBN:9781259290619 Author:Michael Baye, Jeff Prince Publisher:McGraw-Hill Education ENGR.ECONOMIC ANALYSIS ISBN:9780190931919 Author:NEWNAN Publisher:Oxford University Press Principles of Economics (12th Edition) ISBN:9780134078779 Author:Karl E. Case, Ray C. Fair, Sharon E. Oster Publisher:PEARSON Engineering Economy (17th Edition) ISBN:9780134870069 Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling Publisher:PEARSON Principles of Economics (MindTap Course List) ISBN:9781305585126 Author:N. Gregory Mankiw Publisher:Cengage Learning Managerial Economics: A Problem Solving Approach ISBN:9781337106665 Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor Publisher:Cengage Learning Managerial Economics & Business Strategy (Mcgraw-... ISBN:9781259290619 Author:Michael Baye, Jeff Prince Publisher:McGraw-Hill Education What is the profitThe profit-maximizing choice for a perfectly competitive firm will occur at the level of output where marginal revenue is equal to marginal cost—that is, where MR = MC.
Why will a profitA profit maximizing competitive firm will continue to produce in the range when marginal cost is falling till the marginal revenue is more than marginal cost. So long as the profit tends to increase and equilibrium output is not reached, it will be reached when marginal cost is equal to marginal revenue.
When profitWhen profit-maximizing firms in perfectly competitive markets are earning economic profits, new firms will enter the market. economic profits are zero. selling the same good at different prices to different customers.
What is the profitThe Profit Maximization Rule states that if a firm chooses to maximize its profits, it must choose that level of output where Marginal Cost (MC) is equal to Marginal Revenue (MR) and the Marginal Cost curve is rising. In other words, it must produce at a level where MC = MR.
|
Profit-maximizing firms enter a competitive market when, for existing firms in that market,
zusammenhängende Posts
Urheberrechte © © 2024 de.ketajaman Inc.
