Answer questions 11-19 using the following information. In the diagram below, we show a perfectly competitive firm in a perfectly competitive industry with 100 identical firms. It is a short-run situation. Assume that the firm's MC is equal to its AVC at the point q - 1500. 65. POROK SUbabuga 60. 55. 50. 45. 40. 35. Figure 1: The firm 25. B 20. 15. 10. 0 5 10 15 20 25 30 35 Firm's Quantity in Hundreds Figure 2: The industry 65. MC 60. 55. 50. ATC 45. D 40. 35. 30. 25 20. 15. 10 5. 0 5 10 15 20 25 30 35 Market Quantity in Ten Thousands 11. The firm's supply schedule (for positive output) is defined by the line *a. AF b. BF c. CF d. GF 12. Market equilibrium price is a. 35 b. 30 c. 20 *d. 25 13. The price charged by the firm is a. 35 b. 30 c. 20 *d. 25

Answer questions 11-19 using the following information. In the diagram below, we show a perfectly competitive firm in a perfectly competitive industry with 100 identical firms. It is a short-run situation. Assume that the firm's MC is equal to its AVC at the point q - 1500. 65. POROK SUbabuga 60. 55. 50. 45. 40. 35. Figure 1: The firm 25. B 20. 15. 10. 0 5 10 15 20 25 30 35 Firm's Quantity in Hundreds Figure 2: The industry 65. MC 60. 55. 50. ATC 45. D 40. 35. 30. 25 20. 15. 10 5. 0 5 10 15 20 25 30 35 Market Quantity in Ten Thousands 11. The firm's supply schedule (for positive output) is defined by the line a. AF b. BF c. CF d. GF 12. Market equilibrium price is a. 35 b. 30 c. 20 d. 25 13. The price charged by the firm is a. 35 b. 30 c. 20 *d. 25

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

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