Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 14 13 8 6 4 2 MC 1 2 3 QUANTITY Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is O a. exactly $13. O b. less than $13 but more than $6. O c. above $13. O d. less than $6. ATC AVC 5

Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 14 13 8 6 4 2 MC 1 2 3 QUANTITY Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is O a. exactly $13. O b. less than $13 but more than $6. O c. above $13. O d. less than $6. ATC AVC 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 4 13 12 10 14 8 6 4 2 MC 1 2 3 QUANTITY ATC AVC 5 Refer to Figure 14-1. If the market price is $5, the firm will earn a. negative economic profits in the short run but remain in business. b. negative economic profits and shut down. c. zero economic profits in the short run. O d. positive economic profits in the short run.
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Resources Submit All Question 9 of 30 The accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely) competitive industry. a. Use the line labeled 'Supply' to trace out the firm's Short-Run supply curve. 20 Supply Marginal cost 19 18 17 16 Average total cost 15 14 13 Average variable cost 12 11 10 8. 7. 4 3. 2 15 21 24 27 30 33 36 39 12 46°F A 18 a 1O
On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $20 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm. of
Suppose that firm is currently producing 15 units of a good at a market price of $12. The firm has a MC of $12 and an average total cost of $8. What is the firm's economic profit and is it maximizing profits? O $0, yes O $60, no $60, yes O $0, no 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.
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A perfectly competitive firm maximizes profit by producing 100 units at an ave total cost of $12 and an average fix cost of $5 for a market price of $10. Its shutdown price will be - $10 O b. $5 $7 O d. $12 Show Transcribed Text Under perfectly competitive conditions, a firm should continue to produce - OaUntil total revenue is as high as possible Ob Until price is equal to marginal cost Oc Until profits are negative Od. While costs are falling, then stop Oe. Until there is no more revenue Show Transcribed Text A perfectly competitive firm maximizes profit by producing 200 units at an average total cost of $15 and an average fix cost of $5 for a market price of $25. Its total fixed cost will be- O a $3000 O b. $1000 O c. $1500 Od. $2000 Show Transcribed Text According to this principle, as successive units of a variable factor (say labor) are added to a fixed factor, beyond some point the marginal product attributed to every additional unit of that variable factor will decline. O a.…
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The figure shows a perfectly competitive firm. The firm is operating; that is, it has not shut down. The firm produces O A. 20 units of output and earns a normal profit. MC ATC 50 B. 10 units of output and incurs an economic loss. 40 O C. 10 units of output and earns a normal profit. O D. 20 units of output and incurs an economic loss. 30 MR 20 10 10 30 40 Quantity (per day) Price and costs (dollars) 20
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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
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