7. In the homogeneous product case, price is higher, quantity iscompetition.and profits are higher undercompetition than undera. lower; price; quantityb. higher; quantity; pricec. higher; price; quantityd. lower; quantity; price8.as the strategic variable for a firm gives rise to aoutcome thanas thestrategic variable.a. Price; more competitive; quantityb. Quantity; more competitive; pricec. Price; less competitive; quantityd. Quantity; less competitive; price9. In themarginal costs), the chosenthose in a standard Cournot model.with efficient consumer rationing (and with linear demand and constantthat are equal toin the first stage generatea. two stage capacity-then-price industry model; capacities/quantities; quantitiesb. two stage capacity-then-price industry model; prices; quantitiesc. three stage capacity-then-price industry model; capacities/quantities; pricesd. three stage capacity-quantities then-price industry model; capacities/quantities; quantities10. In themodel withprices in equilibrium aremarginalcosts.a. Hotelling; differentiated products; greater than

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7. In the homogeneous product case, price is higher, quantity is competition. and profits are higher under competition than under a. lower; price; quantity b. higher; quantity; price c. higher; price; quantity d. lower; quantity; price

7. In the homogeneous product case, price is higher, quantity is competition. and profits are higher under competition than under a. lower; price; quantity b. higher; quantity; price c. higher; price; quantity d. lower; quantity; price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

7. In the homogeneous product case, price is higher, quantity is
competition.
and profits are higher under
competition than under
a. lower; price; quantity
b. higher; quantity; price
c. higher; price; quantity
d. lower; quantity; price
8.
as the strategic variable for a firm gives rise to a
outcome than
as the
strategic variable.
a. Price; more competitive; quantity
b. Quantity; more competitive; price
c. Price; less competitive; quantity
d. Quantity; less competitive; price
9. In the
marginal costs), the chosen
those in a standard Cournot model.
with efficient consumer rationing (and with linear demand and constant
that are equal to
in the first stage generate
a. two stage capacity-then-price industry model; capacities/quantities; quantities
b. two stage capacity-then-price industry model; prices; quantities
c. three stage capacity-then-price industry model; capacities/quantities; prices
d. three stage capacity-quantities then-price industry model; capacities/quantities; quantities
10. In the
model with
prices in equilibrium are
marginal
costs.
a. Hotelling; differentiated products; greater than

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5.
Question 28 When economic profit is positive in a perfectly competitive industry, market a. supply will increase in the long run causing firm marginal revenue to rise. b. supply will increase in the long run causing firm marginal revenue to fall. c. supply will decrease in the long run causing firm marginal revenue to fall. d. demand will increase in the long run causing firm marginal revenue to rise. e. supply will decrease in the long run causing firm marginal revenue to rise.
Marginal profit is negative when A. output exceeds the profit-maximizing level. B. total cost exceeds total revenue. C. marginal revenue is negative. D. profit is negative.
4. Study Questions and Problems #4 The market equilibrium price for wheat is $4 per bushel. On the following graph, use the green line (triangle symbol) to plot the marginal revenue curve for a typical wheat farmer. Use the orange line (square symbol) to plot the total revenue curve for this farmer. TOTAL REVENUE & MARGINAL REVENUE (Dollars per bushel) 10 9 9 1 2 3 4 6 6 7 8 9 10 QUANTITY (Bushels) Marginal Revenue Total Revenue ? True or False: Marginal revenue is the change in total revenue per bushel. In this case, $4 is the marginal revenue that remains constant and equal to price. True False
9. The chicken farming industry in Northern New York is extremely profitable and I would really like to enter that market. Unfortunately, suitable land has become very difficult to find as public health policies prevent raising chickens near any flowing water supply. I cannot find any land for my new chicken farm. What is the economic term for this?
Question attahed in image
3. For a perfectly competitive firm: a. the demand curve is perfectly inelastic at the market price and is one and the same with its marginal-revenue curve. b. economic profits can be earned in the long run but not in the short run. c. the profit-maximizing quantity to produce occurs at that output level in which price equals marginal cost. d. its total-revenue function is linear (a straight line), with a slope equal to the quantity demanded.
Give typing answer with explanation and conclusion Which of the following characteristic(s) does not describe a competitive market? 1. A market where firms can freely enter or exit the market. 2. A market where firms sell a differentiated product. 3. A market with few buyers and sellers. 4. A market where firms sell a nearly identical product. Choices A.2 and 3 B.1, 2 and 3 C.1, 3, and 4
Marginal revenue is defined as Selected Answer: b. the change in total revenue divided by quantity. Answers: a. total revenue divided by quantity. b. the change in total revenue divided by quantity. c. the change in total revenue divided by the change in quantity. d. total revenue minus total cost. e. the change in total revenue divided by the change in per unit price.
2. A fisher sells Hilsha fishes in a perfectly competitive market and faces a price of $5 per kg at possible weekly outputs of between 3000 and 5000 kg. a. Identify the fisher's marginal revenue in this output range. b. Explain how the relationship between price and marginal revenue is affected by the fact that this fisher operates in a perfectly competitive market. c. Draw the fisher's marginal revenue curve. Does it have the shape you expect? Explain.