A firm in a perfectly competitive market has no control over price because:Select one:ofO a. The government imposes price ceiling on the products produced in perfectly competitiveindustriesO b. There are barriers to entry into the industryOc. The market demand for products produced in perfectly competitive industries is perfectly elastic*O d. Every firm's product is a perfect substitute for every other firm's product, and there are very largenumber of firms in the industry

Perfect competition market refers a market where large number of buyer and seller sell identical…

Answered: A firm in a perfectly competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 Are the price and quantity combinations above for a perfectly competitive industry? Select one: O a. No, they are not because the demand curve should be perfectly elastic. O b. No, because the quantities are too low. O c. Yes, they are because the demand curve is downward sloping. O d. Yes, they are because the price falls the same amount for each increase in quantity. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Pi ce CA Per pica) 75 55 30 MR Quast (paus pe 40 The figure above shows the cost curves of a profit-maximizing perfectly competitive firm. 8) What are the characteristics of a perfectively competitive market? 9) what is the equilibrium output and price? 10) calculate the producer and consumer surplus
The following graph illustrates the market for small moving trucks in Bloomington, IN, during Indiana's fall move-in week. PRICE (Dollars per small truck) 100 90 80 70 80 50 40 30 20 10 0 Demand I 01 5,50 2 3 8 5 6 7 QUANTITY (Hundreds of small trucks) Supply 9 10 ? Suppose that SendIt is one of over a dozen competitive firms in the Bloomington area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price SendIt must take as given is S
Frances sells pencils in the perfectly competitive pencil market. Her output per day and costs are seen in the table to the right. a. If the current equilibrium price in the pencil market is $1.80, what price will Frances charge? ⒸA. $1.80 OB. $5.00 OC. $2.00 D. $1.05 b. Find the correct quantities for the missing values in the table, as represented by (i, ii, iii, and iv; enter all values as dollars and cents). (1) Marginal revenue is $ (i) Total revenue is $ (iii) Marginal revenue is $ (iv) Total revenue is $ c. What quantity of pencils will maximize Frances' profit? pencils. Output per Total Cost day 0 1 $1.05 1.85 2.55 3.20 3.65 4.30 5.55 7.75 10.10 MC $0.80 0.70 0.65 0,45 0.65 1.25 2.20 2.35 Total Marginal Revenue Revenue $0.00 1.80 3.60 5.40 (ii) 9.00 10.80 (iv) 14.40 $1.80 1.80 (1) 1.80 1.80 (ii) 1.80 1.80
Consider a perfectly competitive market. Currently the equilibrium price is above the minimum of Average Total Cost. This is likely to result in _____________ and ___________ in price. A. Decrease in market demand; decrease in price B. Increase in market demand; increase in price C. Increase in market supply; and decrease D. Decrease in market supply; and decrease E. Increase in market supply; and increase F. Decrease in market supply; and increase
Which of the following statements is TRUE? O A. Consumer surplus is higher under a single-price monopoly than it is under a perfectly price-discriminating monopoly. B. Joan adds one more employee to her construction company. The additional output produced by this employee represents the average product of this employee. O C. Lawn mowing is a perfectly competitive industry. Alex's Lawn-Mowing Service should shut down in the short run whenever his profits are negative. O D. Lawn mowing is a perfectly competitive industry. Alex's Lawn-Mowing Service should close if Alex expects his long-run economic profits to equal zero. Reset Selection
QUESTION 9 In a perfectly competitive market there are a. few buyers and few sellers. O b. many buyers and many sellers. O c. many buyers and few sellers. O d. few buyers and many sellers.
2. Suppose that the market for wind chimes is a competitive market. The following graph shows the daily cost curves of a particular firm operating in this PRICE (Dollars per wind chime) 40 36 32 28 24 20 16 2 8 4 0 0 MC 2 ATC AVC 6 4 8 QUANTITY (Thousands of wind chimes per day) + 10 12 14 16 18 20 market: a) In short run, at a market price of $26 per wind chime, how much will firm choose to produce per day? How do you know? b) If the market price is $26 in the short run, and the firm chooses to produce the quantity you obtained in question (a), indicate the area that represents firm's profit or loss in short run on the graph. c) What is this firm's shutdown price, that is the price below which it is optimal for the firm to shut down in short run? d) long run, all firms can enter and exit the market, and all entram the same costs as above. As this mark
A firm facing a demand curve will have zero quantity demanded if it raises its price above the market price. a. perfectly elastic O b. relatively elastic O c. relatively inelastic O d. perfectly inelastic A perfectly competitive firm is breaking even. In the short run it should In the long run it should a. produce where MC = MR; keep the same production level O b. produce where MC = MR; leave the industry O c. shut down; exit the industry O d. shut down; expand
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For a firm in a perfectly competitive output market (as covered in Chapter 8), price per unit of the good is equal to marginal revenue. This relationship between price and marginal revenue is due to which of the following assumptions about a firm in a perfectly competitive output market: O a. Firms are price takers. O b. Downward-sloping market demand curve. O c. No barriers to entry. O d. Upward-sloping market supply curve.
A local pizzeria only servers two items: pizzas and sandwiches. An increase in the demand for sandwiches will result in which of the following for the firm? O an increase the opportunity cost of producing pizzas O an increase in the amount of resources the firm devotes to producing pizzas O a decrease in the price of bread a decrease in the price of sandwiches a decrease in the firm's overall revenue

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