Figure 14-9MCATCP1Q1(a)P0P2Q2QuantityPriceP1QA(b)P0P2QCQBQDS0S1D0D1ABCDQ u a n t iP r i c e28.Refer to Figure 14-9. When the market is in long-run equilibrium at point A in panel (b), the firmrepresented in panel (a) will Show Get answer to your question and much more 29.Refer to Figure 14-9. Assume that the market starts in equilibrium at point A in panel (b). An increase indemand from D0 to D1 will result in Get answer to your question and much more 7 Upload your study docs or become a Course Hero member to access this document Indicate the answer choice that best completes the statement or answers the question. Scenario 14- Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
Table 14- Quantity Total Cost 0 $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ 2. Refer to Table 14-15. What is the lowest price at which this firm would operate in the short run? a. $3. b. $4. c. $5. d. $6. Scenario 14- The information below applies to a competitive firm that sells its output for $40 per unit. • When the firm produces and sells 150 units of output, its average total cost is $24. • When the firm produces and sells 151 units of output, its average total cost is $24. 3. Refer to Scenario 14-4. How does the firm’s marginal revenue (MR) compare to its marginal cost (MC) when it increases its output from 150 units to 151 units? a. MR exceeds MC by $7. b. MR exceeds MC by $11. c. MC exceeds MR by $11. d. MC exceeds MR by $13. Figure 14- Suppose a firm operating in a competitive market has the following cost curves:
Indicate the answer choice that best completes the statement or answers the question. Table 14- Bill’s Birdhouses COSTS REVENUES Quantity Produced Total Cost Marginal Cost Quantity Demanded Price Total Revenue Marginal Revenue 0 $0 -- 0 $80 -- 1 $50 1 $ 2 $102 2 $ 3 $157 3 $ 4 $217 4 $ 5 $285 5 $ 6 $365 6 $ 7 $462 7 $ 8 $582 8 $ 6. Refer to Table 14-12. What is Bill's economic profit at the profit-maximizing output level? a. $ b. $ c. $ d. $ Indicate the answer choice that best completes the statement or answers the question. Scenario 14- Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20. 13. Refer to Scenario 14-3. If the marginal cost of producing the 501st unit would be $19, producing and selling the 501st unit would a. decrease the firm’s profit by $19. b. decrease the firm’s profit by $2. c. increase the firm’s profit by $1. d. increase the firm’s profit by $3. Table 14- Suppose that a firm in a competitive market faces the following prices and costs: Price Quantity TotalCost $6 0 $ $6 1 $ $6 2 $ $6 3 $ $6 4 $ $6 5 $ $6 6 $ 14. Refer to Table 14-11. The marginal revenue from producing the 5th unit equals (i) $6. (ii) the price. (iii) the marginal cost. a. (i) only b. (i) and (ii) only c. (iii) only d. (i), (ii), and (iii) Figure 14-
Indicate whether the statement is true or false.
Indicate the answer choice that best completes the statement or answers the question.
Indicate whether the statement is true or false.
Indicate the answer choice that best completes the statement or answers the question.
Indicate whether the statement is true or false.
Indicate the answer choice that best completes the statement or answers the question.
Indicate the answer choice that best completes the statement or answers the question.
Table 14- Suppose that a firm in a competitive market faces the following revenues and costs: Quantity Total Revenue Total Cost 0 $0 $ 1 $7 $ 2 $14 $ 3 $21 $ 4 $28 $ 5 $35 $ 6 $42 $ 7 $49 $ 36. Refer to Table 14-10. This firm should continue to produce and sell units as long as the marginal cost of production is less than or equal to a. $3. b. $5. c. $7. d. $9. Indicate the answer choice that best completes the statement or answers the question.
Indicate whether the statement is true or false.
Indicate the answer choice that best completes the statement or answers the question.
Figure 14- In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms.
Figure 14- Suppose a firm operating in a competitive market has the following cost curves:
Answer Key
What is the firm's total revenue quizlet?A firm's total revenue is found by multiplying the market price by the firm's quantity of output. The difference between total revenue and total cost is: Economic profit or loss.
How is total profit for a firm calculated quizlet?Profit is calculated as a firm's total revenue minus total cost. A loss is when revenue is not able to cover costs. Profits are positive while losses are negative. 2) Define Implicit Costs.
What is the firm's short run economic profit?In the short run, a monopolistically competitive firm maximizes profit or minimizes losses by producing that quantity where marginal revenue = marginal cost. If average total cost is below the market price, then the firm will earn an economic profit.
When firms are said to be price takers It implies that if a firm raises its price?A perfectly competitive firm is known as a price taker because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market. If a firm in a perfectly competitive market raises the price of its product by so much as a penny, it will lose all of its sales to competitors.
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