If, in a competitive market, the market price is $8 but a firm is charging a price of$12 per unit, then the firmOA. will break even.OB. will sell 00 units.C. is making a profitD. will not sell any outputClick to select your answer.Priceandcost$1200200500700MCMarketpriceQuantity

A market that is competitive includes numerous customers and sellers, comparable or identical items,…

If, in a competitive market, the market price is $8 but a firm is charging a price of $12 per unit, then the firm OA. will break even. OB. will sell 00 units. OC. is making a profit OD. will not sell any output

If, in a competitive market, the market price is $8 but a firm is charging a price of $12 per unit, then the firm OA. will break even. OB. will sell 00 units. OC. is making a profit OD. will not sell any output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Use the provided to figure to answer the following question. Marginal Cost and Average Cost…

A: Perfect competition is a theoretical market structure that serves as a benchmark against which…

Q: ATC MC AVC P3 f P2 P1 10 11 12 Quantity (per day) 5 8 The figure above shows a firm in a perfectly…

A: The firm's goal is to maximize profits by minimizing losses. A competitive firm may incur losses in…

Q: Price and Cost (dollars) O O 8 OC 76543 2 1 Refer to the graph above. The perfectly competitive,…

A: The point is to determine how much output a perfectly serious, profit-expanding firm will produce in…

Q: a perfectly competitive market over the long run, a. an increase in market demand or a decrease in…

A: Perfect competition market Perfect competition is a form of market where there is a large number of…

Q: graph shows the short run cot curve of a firm in a purely competitive market. Which of the following…

A: The profit maximizing output for the firm occurs where the (the upward sloping part of the) marginal…

Q: Quantity 0 100 200 300 400 500 600 Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760 4,000 5,800…

A: In perfectly competitive market, there are many firms producing identical goods. This makes…

Q: P₁ P₂ P₂ C Q₂ D MC Q₂ Q₂ Output Quantity Refer to the above figures for the typical firm in a…

A: Perfect competition: A firm in a competitive market is a price-taker because it has a large number…

Q: For a perfectly competitive firm, a decrease in the price of the product it sells will, shift O the…

A: A perfectly competitive firm has a large number of identical firms producing a homogenous product.…

Q: es The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a perfectly…

A: A large number of sellers and buyers with homogeneous products are selling in the markets described…

Q: The accompanying graph illustrates a perfectly competitive firm's total revenue (TR) curve and total…

A: Answer in step 2.

Q: In a perfectly competitive market, the market price is $23. At the current level of output, a firm…

A: 1) in perfect competitive market, there are many number of sellers and buyers which turns the market…

Q: QUESTION 12 Figure 6.2 PRICE OR COST (dollars per unit) 46 30 20 8 CO A 6 B C QUANTITY O New firms…

A: A firm in a perfectly competitive market is characterized by a large number of buyers and sellers…

Q: The diagram at the right shows the various short-run cost curves for a perfectly competitive firm.…

A: A perfectly competitive firm is a price taker in the market, meaning it has no control over the…

Q: Refer to the graph that depicts Joe's family restaurant in a perfectly competitive market. If price…

A: A perfectly competitive market is the kind of market with multiple sellers producing identical…

Q: When price and marginal cost are equal for a perfectly competitive fırm, the firm is O earning…

Q: Mink farming is a perfectly competitive industry and all mink farms have the same cost curves. When…

A: Shut Down price: In the short run as the firm faces the total fixed cost And a firm will shut down…

Q: The graph below displays the short-run cost curves for Paola's Pears, a small farm competing in the…

A: perfect competition market is the form of market where large numbers of sellers and buyers exchange…

Q: Table 12-1 Quantity 0 100 200 300 400 500 600 Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760…

A: Total cost is the cost of producing all the units of good. Total cost is the sum of fixed cost and…

Q: dward Scahill produces table lamps in the perfectly competitive desk lamp market. The equilibrium…

A: A perfectly competitive firm produces at P=MC in the short run to maximize profit or minimize…

Q: A perfectly competitive firm can produce its current level of output at an average total cost of $10…

A: A perfectly competitive firm is a price taker and can sell any quantity of the commodity at the…

Q: Price 8 7 6 5 4 3 I I 10 11 12 13 MC ATC AVC Quantity

A: The market price is $4, which is below the firm's average variable cost at all levels of output.…

Q: Paulina sells beef in a competitive market where the price is $5 per pound. Her total revenue and…

A: Marginal revenue is a central concept in microeconomics that describes the additional total revenue…

Q: To maximize its profit, in the short run a perfectly competitive firm decides O A) how much…

A: Perfect competition market where large numbers of buyers and sellers exchange homogeneous product at…

Q: 24. The figure to the right illustrates the cost curves of a perfectly competitive firm. If the…

A: In perfect competition there are many firms producing identical goods

Q: Suppose the firm faces a price of $34, an average variable cost of $35, and has an average fixed…

A: When the revenue received from the sale of the goods or services produced is insufficient to pay the…

Q: In a perfectly competitive market, each firm produces its last unit at the same marginal cost. a…

A: As per the question the perfectly competitive market usually refers to that market where all the…

Q: firm's faces a constant output price of $5. It produces 37 units and incurs a MC of $3. Which of the…

A: Given, Price = $5 Quantity = 37 units MC = $3

Q: Currently the firm is producing at a profit maximizing quantity of output and has a total revenue of…

A: Marginal cost is the additional cost of producing one more unit of a good. Marginal revenue is the…

Q: ... 50 MC ATC 40 MR 30 20 10 10 20 30 40 Quantity (per day) The figure above shows a perfectly…

A: Equilibrium price and equilibrium quantity will set at the point where marginal revenue equals…

Q: $ Quizzes 2 $15. $12 $10- $7 0000 $114 FIRM O $0 MC 20 30 38 48 55 q The above graph represents a…

A: A perfectly competitive market is a market structure that consists of large number of buyers and…

Q: A firm sells a product in a perfectly competitive market. The marginal cost of the product at the…

A: In a perfectly competitive market, profit is maximized when the marginal cost pf production equals…

Q: Suppose a firm operating in a competitive market has the following cost curves: 20 MC 18 16 14 12…

A: Perfect competition is the type of market structure where there are large number of buyers and…

Q: Consider a competitive firm that is operating in the short run. The firm is maximizing profits and…

A: The perfectly competitive market has a huge number of buyers and sellers. The market is…

Q: MC ATC MR Quantity The diagram portrays Multiple Choice the equilibrium position of a competitive…

A: Competitive market refers top a market where there are many buyers and sellers in the market selling…

Q: Refer to Figure 12-10. If the price is less than $6, the firm should short run and in the long run.…

A: The study and analysis of commercial financial concerns using abstract economic ideas and concepts…

Q: If the firm operates in a perfectly competitive market, and the market price is $25 per unit, what…

A: A seller operating under competitive conditions will sell a level of output where it extricates its…

Q: Average Output Variable Cost SEFER 10 12 14 16 20 Multiple Choice O $4 $5.00 4.00 O$9 $5 4.75 5.75…

A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…

Q: Refer to the graph that depicts Joe’s family restaurant in a perfectly competitive market. If price…

A: In perfect competition, firms are price takers, which means that they cannot influence the market…

Q: Figure 1 Use this figure for questions 14-20. This figure shows costs for a firm in a perfectly…

A: Total revenue is defined as the total receipts which have been received by the seller after selling…

Q: Consider the total revenue (TR), total cost (TC), and total variable cost (TVC) curves shown at…

A: Every firm wants to achieve revenue that is higher than the total cost that they indulge in the…

Q: PS 14 P3 less than P3. Price 01 02 s will be earn losses in the short run but will remain in…

A: A perfectly competitive firm produces at P=MC in short run. Hence, the optimal output is produced at…

Q: ATC Price MC AVC 8. 7- 9. 10 11 12 13 Quantity The graph shows the cost curves of a firm in a…

A: Perfect competition is a market structure where there are large number of buyers and sellers in the…

Q: MC ATC 10 AVC 8. 4 Figure 9.2 shows the cost 60 80 100 Q Figure 9.2 structure of a firm in a…

A: Ans) in perfectly competitive market, price is constant and equal to marginal revenue.

Q: A mattress company operates in a perfectly-competitive environment. If the firm can increase its…

A: In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

Q: $11.00 MC $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 3 4 5. 6 8 10 Quantity of Output (q)…

A: Pierre is a photographer in a perfectly competitive market . The graph shown above gives his…

Q: The perfectly competitive farmer's profit maximizing level of output when price is $2 is_____ units…

A: A perfectly competitive market is one in which a big number of enterprises sell similar products to…

Q: In the long run, a perfectly competitive firm will earn a negative market return. a positive profit.…

A: A competitive market is characterized by a large number of buyers and sellers. The market price and…

Question

If, in a competitive market, the market price is $8 but a firm is charging a price of
$12 per unit, then the firm
OA. will break even.
OB. will sell 00 units.
C. is making a profit
D. will not sell any output
Click to select your answer.
Price
and
cost
$12
00
200
500
700
MC
Market
price
Quantity

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: defining competitive market:

VIEW

Step 2: defining the answer:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Kasey Puzzle, Inc. sells geography-based puzzles. Kasey currently sells 25,000 units a month for $40 each, has variable costs of $20 per unit, and fixed costs of $300,000. Kasey Puzzle is considering increasing the price of its units to $60 per unit. This will not affect costs, but demand is expected to drop 20%. Should Kasey Puzzle increase the price of its product? с Multiple Choice O O Yes, profit will increase $500,000. No, profit will decrease $500,000. No, profit will decrease $300,000. Yes; profit will increase $300,000.
Suppose that the market for dress shirts is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. (?) 50 45 Profit or Loss 40 35 30 АТС 25 20 15 10 AVC MC 4 8 12 16 20 24 28 32 36 40 QUANTITY OF OUTPUT (Shirts) PRICE AND COST (Dollars per shirt)
P P₂ B C Q₂ D MC Firm entry occurs. Output Quantity Refer to the above figures for the typical firm in a competitive market. If the market demand curve is D3, what happens in the long run? A Firm exit occurs. ATC Most firms do nothing. D₂ Some existing firms increase capital input. D₂ D₁ Quantity
Figure: Cost Curves for Corn Producers Price, cost of bushel $30 26 MC 22 18 ATC AVC 14 10 1 3 4 7 Quantity of corn (bushels) Reference: Ref 12-3 (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce of corn and earn an ec omic equal to 2 bushels; profit; $0 2 bushels; loss; just more than $80 per bushel 3 bushels; profit; loss, -$15 4 bushels; profit; just less than $80 per bushel
Dollars A BC O Hi K O G O Multiple Choice I ELM N MC MR Quantity Refer to the diagram. At the profit-maximizing level of output, the firm will realize ATC Demand an economic profit of A-B-H-J. a loss of GH per unit. an economic profit of A-C-G-J. a loss of JH per unit.
Suppose that Redeye's Game Emporium is in a market with imperfect competition. The graph below shows the firm's demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Determine the profit-maximizing level of output and the associated profit-maximizing price. Use the purple rectangle (diamond symbols) to shade the area that represents the firm's profit at this quantity. 2 2 2 2 2 2 2 2 2 2 - PRICE (Dofars per video game) 200 100 100 140 120 100 40 20 20 40 MR 1 88 60 10 100 120 140 160 180 200 QUANTITY (Thousands of Video games) D Profit Which of the following statements is correct at the point where the firm's average total cost (ATC) and the demand curve intersect?
In a perfectly competitive market... Group of answer choices It will eventually reach long-run equilibrium. Economic profits will be driven down to zero in the short run Firms will compete for business by setting different prices at or above the prevailing equilibrium price A few firms will dominate the market share.
Lisa’s Lawn Company (LLC) is a lawn-mowing business in a perfectly competitive market for lawn-mowing services. The following table sets out Lisa’s costs. Quantity (Lawns per hour Total Cost (dollars per lawn) 0 $30 1 40 2 55 3 75 4 100 5 130 6 165 If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow? If the market price is $30 per lawn, what is Lisa’s profit in the short run? If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?
The average variable cost (AVC) 1 and average total cost (ATC) of a price taker firm are provided below. According to this table, if the marginal revenue (MR) is $95, what decision should this firm take in the short-run? Quantity Average Variable Cost Averge Total Cosm 100 25 100 20 150 20 150 23 100 15 100 17 100 19 15030 150 19 150.25 11 O Exit the market Enter in to the market The firm will go for a temporary shutdown Continue production
| $100 Price (per unit) A. OB. O Ü Quantity (units per week) OD. MC A perfectly competitive firm will maximize profits by producing the level of output that corresponds to point ATC D Market Price P=MR
The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE(Dollars pertracker) 100 90 70 60 50 40 20 10 0 0 MO ATC AVC 50 60 70 80 10 20 30 40 QUANTITY (Thousands of trackers per day) 90 100 Profit or Loss In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. 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 $45 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.
Costs MC (per pound) ATC AVC 3.00 2.25 1.50 150 180 225 Quantity (pounds) The figure above shows the cost curves of a perfectly competitive company in the apple market. Use the graph in Figure to answer the following questions. Assume the market price is $3 per pound. a. What is the lowest price at which the apple producer will supply output in the short run? $ per pound. b. What is the firm's profit-maximizing (loss-minimizing) output? c. Is the firm earning a profit or a loss? loss profit