AS slopes upward because as the Price Level for outputsinputs remainingwith the price ofthe costs of production are not rising and, all else equal,production.the lure of higher profits will induce firms tofalls; fixed; decreaseOrises; fixed; expandremains constant; constant; expandNone of the above

Curve of Aggregate Supply and Prices:Because businesses perceive a chance to increase profits as the…

Answered: AS slopes upward because as the Price…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 11CQ

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Whether fim A should continue or stop production with a reference to resulting TFC. g-In some cases, some firms carry on with production even though they achieve a loss. What is the rational behind that? evaluate and comment briefly. Q-2-a- Illustrate and explain comprehensively the case of diminishing marginal returns with grphical presentation in the short-run. What important lessons can be drawn from this law? evaluate and comment. b-lllustrate and explain the relationship between the product and cost curves resulting from short-run case with graphical presentation. c-Under the above context, explain the relationship between MC (Marjinal Cost) and Average Variable Cost (AVC) featured in short-run. Q-3-a-lllustrate and explain the long-run equilibrium for the perfectly competitive Frm andindustry. b-Explain and comment on the results of long-run equilibrium for the perfectly competitive firm drawn from graphical 1llustration. c-Indicate the ecuations that define equilibrium.
Gains from Trade - End of Chapter Problem Between 2016 and 2017, Nintendo produced 2.3 million NES Classic Edition mini consoles that sold out almost immediately as they arrived at stores. The retail price of the mini console was $59.99. However, if you were to check eBay at the time, you would see that people were buying the units for $250 each from scalpers. a. The price of $250 tells scalpers O they should continue to buy the console at the store and resell it on eBay for a higher price. they should keep the consoles they have already purchased and hang onto to them, as they will be considered antiques someday. they should no longer buy and resell the consoles because the price on eBay is too high to make a profit. b. Upon observing that the only way to obtain the gaming console is to buy it on eBay for $250, a consumer might do which of the following? Select all that apply. Consider buying another type of gaming console that is cheaper. Approach a family member about sharing the…
A leftward shift of a product supply curve might be cause by O An improvement in the relevant technique of production O A decline in the prices of needed inputs O An increase in consumer income O Some firms leaving the industry
Q29
QUESTION 9 The slope of the iso-cost curve O a. Depends on the marginal productivity of the inputs of production O b. Depends on both the marginal productivity of the inputs of production and on the relative prices of such Inputs Oc Only depend on the relative prices of the inputs of production Od. Depend on both the prices of the inputs of production and on the level of total costs incurred by the firm e. None of the proposed answers is correct
If MR (marginal revenue) is less than MC (marginal cost), then the firm sould O a. decrease production O b. increase production O c. keep the production level constant O d. keep the prices constant
Suppose that a fim's production tuncson is 2000 1800 in the short run, where there are foed conts of s2.000, und xis the variabie irput whow cont $120 per unt 160 140 1400- What the total coet of producing a leel at cusput q? in oher words, idertify the totsl cost function Cigi S 1200 The total coet of produsing a ve of ouput q 1000- OA CI2,000 OB. Ci-2,000- 00 Cig-2,000 OD. 200- 1250 25 10 12 14 16 Quanity OE 1250g Ci-2,000. 25 Wite down the equstion for the upply ourve The supply curve is 200 OA paso. OB P-2,000 - 00e OC. P-2004. OD. P-504. OR P-100 ece If price is S00, how many units wil the fm produce? The fim wil produce unts of ouput (Enter your reeponse rounded to two decimal places) What is the level of prot Proft equals . (Enter your response roundud to hwo decinal places.) Ilustrate your anewer on a cost aurve graphn. 200 12 14 Quantity 1) Using the ine drawing tool, draw the maginal cost curve. Label it MC. 2) Luing the point druning oal, indicate the profi masimizing…
What is the difference between accounting profit and economic prof? A Economic profit subtracts both explicit and implicit costs from total revenue, while acounting profit only subtracts explicit costs. OR Accounting proft only subtracts implicit costs from totsi revenue, while economic profit only subtracts explicit costs. OC Economic proft orly subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting proft suberacts both explicit and implicit costs from total revenue, while economic proft only subtracts explicit costs
8. siuppose that the manager of a firm operating in a competitive market has estimated the firm's average variable cost function to be: AVC= 18-0.3Q Total fixed cost is $60 and the forecasted price of the firm's product is $12. 79 a. What is the corresponding marginal cost function? b. At what output is AVC at its minimum? C. How much outputs should the firm produce? d. How much profit or loss will the firm earn?,
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A textile firm in a competitive industry employs a particularly efficient manager torun the operations at its production facility. In the textile industry, a plant managertypically makes a salary of $4,500 per month. The textile firm employing thesuperior manager faces the LAC and LMC curves shown in the figure below. Inlong-run competitive equilibrium, the price of the product is $9 A- typical textile firm in this competitive industry has a minimum long-runaverage cost of $______. The typical textile firm earns economic profit of$______ B-The textile firm with the superior plant manager could earn economic profitof $___________ per month, if no rent is paid to the superior manager C-The superior plant manager is likely to earn a salary of $______ per month,$____________ of which is economic rent

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