If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit product and the price it can charge for its A. decreases; falls B. decreases; rises C. increases; does not change D. decreases; does not change O E. increases; falls

If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit product and the price it can charge for its A. decreases; falls B. decreases; rises C. increases; does not change D. decreases; does not change O E. increases; falls

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 perfectly competitive firm is producing at the point where its marginal cost equals the price of the product. If it increasese its ouput, its total revenue will a. fall and its profits will rise. b. rise and its profits will fall. c. fall and its profits will fall. d. rise and its profits will rise.
The industry in the figure below consists of many firms with identical cost structures, and the industry experiences constant scale. Consider a change in demand from D₁ to D2, which increases price from $20 to $30 in the short run. Price $50 $40 $30 $20 $10 0 10 20 Market 30 D₁ 40 Quantity S₁ D₂ 50 60 70 Tools LRS O S₂ Instructions: Enter your answers as a whole number. a. Draw the new short-run market supply curve that will occur in response to the increase in demand and increase in price. Instructions: Use the tool provided 'S2' and be sure your supply curve includes the new equilibrium price and quantity. b. Draw the long-run supply curve. Instructions: Use the tool provided 'LRS' and plot only the endpoints over the entire range of output (0-60). The new equilibrium price is $ 20 and the new equilibrium quantity is 40.
Indicate whether you agree or disagree with the following statement. The marginal cost curve of any profit-maximizing firm is the firm's short-run supply curve. A. Disagree: The MC curve is the demand curve below minimum AVC. O B. Agree: The MC curve is the supply curve below minimum AVC. OC. Disagree: The MC curve is the demand curve above minimum AVC. D. Agree: The MC curve is the supply curve above minimum AVC. Ay quantity 7 units total cost is $194 and at quantity 8 units total cost is $208, what is the marginal cost at 8 unit? How you arrived to your solution? How you define marginal cost? 1 B I U S Ix Write your answer 1 B I U S Ix Write your answer = 글 EEI 1 At 5 units of production, if total variable cost is $75 and total fixed cost is $100, what is value of (a) total costs (b) average cost, (c) average variable cost and (d) average fixed costs? X₂ # 6 1 1 x² Insert Formula x₂ x²² Insert Formula
Last answer was wrong. Don't give incorrect answers plz
10 In the long run a perfectly competitive industry will have all firms making profits O all firms breaking even all firms making losses There is not enough information to answer
In the long run, a perfectly competitive firm makes O A) either a positive economic profit or a normal profit. B) zero accounting profit. C) zero economic profit. D) negative economic profit, that is, an economic loss. E) a positive economic profit.
Which describes the firms supply curve for the short run with perfect competition? O The section of MC that is above AVC O The section of MC that is above ATC There is no supply curve since it depends on the slope of demand O The section of ATC to the right of its intersection with MC Which describes the long run equilibrium situation for a firm in perfect competition? O Demand is sloping downward and tangent to ATC Demand is horizontal and tangent to the bottom of ATC O Demand is tangent to AVC O There are positive economic profits to motivate firms to keep producing
O Macmillan Learning If firms in a perfectly competitive industry are experiencing economic losses, cause industry supply to and market price to exit; decrease; increase exit; decrease; decrease entry; increase; decrease O exit; increase; decrease will occur in the long run, which will
Question 21 please solve
Which of the following is an expression of profit for a perfectly competitive firm? Profit for a perfectly competitive firm can be expressed as ⒸA. Profit=(PxQ)-(TCxQ), where P is price, Q is output, and TC is total cost. OB. Profit=P-MC, where P is price and MC is marginal cost. OC. Profit=PxQ, where is price and Q is output. O D. Profit=P-ATC, where P is price and ATC is average total cost. O E. Profit= (P-ATC) XQ, where P is price, Q is output, and ATC is average total cost.
Consider the following figure for a perfectly competitive firm in the short run. Price, Costs MC ATC AVC 30 26 20 12 ------ 10 ..---- .---- 8 12 21 30 32 40 Output Suppose the industry price is $20. If the firm produces its profit-maximizing or loss-minimizing output, then it will make a equal to Loss; $420 Profit ; $240 Loss ; $180 Loss; $240
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