A firm that has as its objective the maximization of revenues rather than profits would produce an output level for which: Select one: a. marginal revenue is equal to zero b. total revenue is equal to total cost c. marginal revenue is equal to average cost d. marginal revenue is equal to price In the short run, a firm should continue to operate, even if it is incurring losses, provided: Select one: a. the firm can cover its variable costs b. the firm can cover its fixed costs c. none of the above

A firm that has as its objective the maximization of revenues rather than profits would produce an output level for which: Select one: a. marginal revenue is equal to zero b. total revenue is equal to total cost c. marginal revenue is equal to average cost d. marginal revenue is equal to price In the short run, a firm should continue to operate, even if it is incurring losses, provided: Select one: a. the firm can cover its variable costs b. the firm can cover its fixed costs c. none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The marginal cost of a firm: a. crosses total cost at its minimum. b. crosses average variable cost and average total cost at their respective minima. C. crosses marginal revenue at a point above the profit-maximizing level of output. d. is a horizontal line, indicating that costs are constant in perfect competition.
The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $5, in the short - run a profit - maximizing firm would: Produce and earn a negative economic profit Not produce (as it leads to a negative profit) Produce and earn a normal profit Produce and earn a positive economic profit The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $5, in the short-run a profit-maximizing firm would: Price and cost 16 15 14 13 12 11 10 9 8 6 3 MO O Produce and earn a negative economic profit O Not produce (as it leads to a negative profit) O Produce and earn a normal profit O Produce and earn a positive economic profit ATC AVC 6 bis & Quantity
A profit-maximizing firm decides to shut-down production in the short-run. Its total fixed cost of production is $100, i.e. TFC = $100. Which of the following statements is true? a If the firm produced, the firm's revenues would have been lower than $100. bIf the firm produced, the firm's total variable cost must be lower than $100. cIf the firm produced, the firm's losses would have been higher than $100. dIf the firm produced, the firm's total variable cost would have been higher than $100.
Explain it early but correctly.
37) In a perfectly competitive industry, the market price of the product is $15. Firm A is currently producing 300 units. The firm's marginal cost is $15, its fixed costs amount to $1000 and its average variable cost equals $10. Which one of the following is true for this firm?a) it’s profits are 500 $b) it’s profits are -500 $c) it’s profits are -1500 $d) it’s profits are 1500 $
Which of the following statements applies to a purely competitive producer? a. it will not advertise its product b. in long-run equilibrium, it will earn an economic profit c. its product will have a brand name that elicits customer loyalty d. its product is slightly different from those of its competitors [ don't give chatgpt answer]
What relationship determines whether or not a firm should stay open in the short run? A) The price of the goods it sells and its average total cost. B) The price of the goods it sells and its average variable cost. C) The marginal revenue of the goods it sells and its average total cost. D) The marginal revenue of the goods it sells and its average variable cost.
Marginal revenue is A) the change in total revenue from a one-unit increase in the quantity sold. B) less than price for a perfectly competitive firm. C) another name for total revenue. D) the economic profit from producing an additional unit of output. E) the change in total cost from producing an additional unit of output.
Why does a firm in perfect competition produce the quantity at which marginal cost equals price? In a perfectly competitive market, the price of a handsaw is $25. When a firm maximizes its profit, it produces 6 handsaws a day. Draw the marginal revenue curve. Label it. Draw the marginal cost curve that illustrates the profit-maximizing output. Label it. Draw a point at the profit-maximizing output and price. A firm produces the quantity at which marginal cost equals price because when marginal cost is greater than price, the firm O A. can increase economic profit by producing 1 less handsaw O B. is maximizing economic profit OC. is at its shutdown point O D. can increase economic profit by producing 1 more handsaw 50- 45- 40- 35 30- 25- 20- 15- 10- 5 0- 0 Price (dollars per handsaw) 10 Quantity (handsaws per day) >>> Draw only the objects specified in the question.
Rose growing is a perfectly competitive industry and all rose growers have the same cost curves The market price of roses is $11 a bunch, and each grower maximizes profit by producing 400 bunches a week The average total cost of producing roses is $21 a bunch Minimum average variable cost is $9 a bunch, and the minimum average total cost is $13 a bunch What is a rose grower's economic profit in the short run and how does the number of rose growers change in the long run? OB incuring an economic loss; enter and some firms will ext OC. making zero economic profit, shut down and ext OD. making an economic profit, enter OE making an economic profit, exit and some firms will enter In the long run, the number of rose growers will OA decrease OB increase OC not change CETO
In a perfectly competitive market, a single firm that sets its price a small amount above the market price will do which of the following? a.Not sell any units at all b.Have lower revenues but receive zero economic profits c.Make lower profits than other firms, but the exact amount less depends on the elasticity of demand for the product d.Earn profits higher than other firms as long as the other firms continued to charge the market price
Suppose that the demand curve faced by a firm is downward sloping. Which of the following statements is true? Question 5Answer a. The firm faces constantly changing production technology b. The firm operates in a perfectly competitive market c. The firm’s marginal revenue is equal to the market price d. The firm is not a price-taker