Consider the below graph. To force this firm to produce the efficient level of output, the government should impose a tax of15HXP = 100Select one:Price per unita. more than $15.00 per bag of fertilizer.Ob$5.00 per bag of fertilizer.O c.$15.00 per bag of fertilizer.O d. $10.00 per bag of fertilizer.50 60Bags offertilizerMSCMC·ដ្ឋ

The socially efficient level of output is the output at which the marginal social costs of…

Consider the below graph. To force this firm to produce the efficient level of output, the government should impose a tax of Price per unit Select one: O a. more than $15.00 per bag of fertilizer. O b. $5.00 per bag of fertilizer. O c. $15.00 per bag of fertilizer. O d. $10.00 per bag of fertilizer. 15 10 0 50 60 Begs of fertilizer MSC MC 9

Consider the below graph. To force this firm to produce the efficient level of output, the government should impose a tax of Price per unit Select one: O a. more than $15.00 per bag of fertilizer. O b. $5.00 per bag of fertilizer. O c. $15.00 per bag of fertilizer. O d. $10.00 per bag of fertilizer. 15 10 0 50 60 Begs of fertilizer MSC MC 9

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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
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.
In a competitive market with free entry and exit from the market a permanent rise in demand will lead to Select one or more: O a. excess profits being made in the short run (before new firms can enter) O b. entry by new firms O c. a permanent rise in prices O d. normal profits being made in the long-run
Assume that the market for house cleaning is perfectly competitive. If a single firm cleans 22 apartments per week, and there are 99 identical firms in the market, how many markets are getting cleaned weekly? O a less than 2178 because demand slopes down. O b.4356 Oc 2614 O d. 2178 O e. it is impossible to say anything about the market output based on information about single firms.
What are the three conditions for a market to be perfectly competitive? For a market to be perfectly competitive, there must be O A. many buyers and a small number of firms that compete, selling identical products, and barriers to new firms entering the market. O B. many buyers and one seller, with the firm producing a product that has no close substitutes, and barriers to new firms entering the market. OC. many buyers and a few sellers, with all firms selling identical products, and no barriers to new firms entering the market. O D. many buyers and sellers, with all firms selling identical products, and no barriers to new firms entering the market. O E. many buyers and sellers, with firms selling similar but not identical products, with low barriers new firms entering the market.
If a firm is a price-taker, then Select one: O a. marginal revenue is equal to price O b. the firm can sell as much output as it likes at the market-determined price O c. marginal revenue is equal to total revenue O d. both a and b
Firms X and firm Y are maximizing profits. At their respective profit-maximizing price, Firm X's own-price elasticity is -2 and Firm Y's own-price elasticity is -3. Which statement is correct? O The share of markup in the optimal price (Lerner index) for firm X is equal to 50% O Firm X is a price taker O Everything else held constant, if firm Y increases its price it will lead to an increase in its revenue O Firm X's consumers are more price sensitive than firm Y's consumers O Firm Y can charge a higher markup than firm X
In a perfectly competitive market, there are firms, all selling products. Select one: O a several large; differentiated O b. several large; nearly identical O c. many small; differentiated O d. many small; nearly identical
6
Suppose that in a competitive market the equilibrium price is $2.50. What is marginal revenue for the last unit sold by the typical firm in this market? Select one: O a. less than $2.50 O b. more than $2.50 Oc. exactly $2.50 Od. The marginal revenue cannot be determined without knowing the actual quantity sold by the typical firm.
4. The demand for an individual firm's output depends on the demand for the industry's output, the number of firms in the industry, and the structure of the industry. O a. True Ob. False
Which of the following is always true for the profit-maximizing firm in a perfectly competitive output market (as discussed in Chapter 8): O a. The economic profit at the profit maximizing output is negative. O b. The profit maximizing output is equal to the price given by the market. Oc. The economic profit at the profit maximizing output is positive. O d. At profit maximizing output, the slope of the total cost curve is equal to the slope of the total revenue curve. Say you have following Engle curve (which are the dashed lines) relating household income and pollution: FIGURE 1.-POLLUTION EMBODIED IN HOUSEHOLD CONSUMPTION: PM10 O 1984 2012 10 15 Average After-Tax Income (10,000 2002 $) Which of the following statements about this Engle curve is true in 2012? Select one: O a. Household pollution is a Giffen good. O b. Household pollution is a normal good. O c. Househald pollution is an inferior good. O d. Household pollution starts as an inferior good, and then becomes a normal good.…