In a perfectly competitive market in short-run equilibrium,O A. the price and quantity bought and sold in the market are determined by the shutdown pointB. only demand determines the price and quantity bought and sold in the market because all firms are price takersOC. only supply determines the price and quantity bought and sold in the market because the good has many substitutesD. market supply and market demand determine the price and quantity bought and sold in the marketIn short-run equilibrium, each firm makes an economic profit equal toA. marginal revenue minus marginal cost, multiplied by the quantity producedB. market price minus average total cost, multiplied by the quantity producedC. market price minus marginal costO D. marginal revenue minus average total cost Poinsettia growing is a perfectly competitive industry and all poinsettia growers have the same costs.The market price of poinsettias is $14 a pot and each grower maximizes profit by producing 1,100 pots a week.Average total cost of producing poinsettias is $15 a pot and average variable cost is $8 a pot.Minimum average variable cost is $4 a pot.What is the price at the grower's shutdown point?The price at the grower's shutdown point is S 11 a pot.

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In a perfectly competitive market in short-run equilibrium, the prico and quantity bo ught and sold in the markot aro dotorminod by tho shutdo

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

In a perfectly competitive market in short-run equilibrium,
O A. the price and quantity bought and sold in the market are determined by the shutdown point
B. only demand determines the price and quantity bought and sold in the market because all firms are price takers
OC. only supply determines the price and quantity bought and sold in the market because the good has many substitutes
D. market supply and market demand determine the price and quantity bought and sold in the market
In short-run equilibrium, each firm makes an economic profit equal to
A. marginal revenue minus marginal cost, multiplied by the quantity produced
B. market price minus average total cost, multiplied by the quantity produced
C. market price minus marginal cost
O D. marginal revenue minus average total cost

Poinsettia growing is a perfectly competitive industry and all poinsettia growers have the same costs.
The market price of poinsettias is $14 a pot and each grower maximizes profit by producing 1,100 pots a week.
Average total cost of producing poinsettias is $15 a pot and average variable cost is $8 a pot.
Minimum average variable cost is $4 a pot.
What is the price at the grower's shutdown point?
The price at the grower's shutdown point is S 11 a pot.

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