49.Assume the XYZ Corporation is producing 20 units of output. It is selling this output in apurely competitive market at $10 per unit. Its total fixedcosts are $100 and its average variablecost is $3 at 20 units of output. This corporationA.should close down in the short run. Show X B.is maximizing its profits.C.is realizing a loss of $60.D.is realizing an economic profit of $40.50.A purely competitive firm's short-run supply curve is Get answer to your question and much more 51.Suppose you find that the price of your product is less than minimum AVC. You should Get answer to your question and much more 52.If a purely competitive firm shuts down in the short run, Get answer to your question and much more 53.A purely competitive firm should produce in the short run if its total revenue is sufficient tocover itsA.total variable costs.X B.total costs.C.total fixed costs.D. marginal costs. 54.OutputMarginal RevenueMarginalCost0----1$16$102169316134161751621 The data in the accompanying table indicates that this firm is selling its output in a(n) Get answer to your question and much more 55.OutputMarginal RevenueMarginalCost0----1$16$102169316134161751621Refer to the data in the accompanying table. If the firm's minimum average variable cost is $10,the firm's profit-maximizing level of output would be Get answer to your question and much more 56.OutputMarginal RevenueMarginalCost0----1$16$102169316134161751621Refer to the data in the accompanying table. At the profit-maximizing output, the firm's totalrevenue is Get answer to your question and much more 57.OutputMarginal RevenueMarginalCost0----1$16$102169316134161751621Refer to the data in the accompanying table. Assumingtotalfixedcosts equal to zero, the firm'sA.economic profit is $12.B.economic profit is $16.C.loss is $14.D.economic profit is $3. Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document INSTRUCTIONS: Select the BEST answer for each question by marking the circle next to your selection
This is the end of the test. When you have completed all the questions and reviewed your answers, press the button below to grade the test. What output quantity will the monopolistically competitive firm produce to maximize profits?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.
What is a purely competitive seller?a marketing situation in which there are a large number of sellers of a product which cannot be differentiated and, thus, no one firm has a significant influence on price. Other prevailing conditions are ease of entry of new firms into the market and perfect market information.
What price will the monopolistically competitive firm charge?The monopolistic competitor will produce that level of output and charge the price that is indicated by the firm's demand curve. If the firms in a monopolistically competitive industry are earning economic profits, the industry will attract entry until profits are driven down to zero in the long run.
Which idea is inconsistent with pure competition quizlet?Which idea is inconsistent with pure competition? change in total revenue associated with the sale of one more unit of output.
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