In the short run: A) firms have the ability to enter or exit the industry. O B) firms are able to alter some, but not all, of their factors of production. O OC) firms are unable to adjust their output choices D) None of the above are correct.
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A: ANSWER IS GIVEN BELOW
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Q: 1. Which of the following remains constant as output increases? * a. TFC
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Q: 59. Under perfect competition A. O AC=AVC
A: To find : What happens under perfect competition.
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Q: the main difference between the short run and the long run
A: Short run is a time period in which there are fixed costs and variable cost Fixed cost means the…
Q: Time left 1:12:53 A firm's total short-run cost function is C(y) = 12y³ – 8y? + 30y + 12. At what…
A:
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- The profit (in dollars) from the sale of x lawn mowers is II(x) = 70 x -0.07 x2 - 750. The correct interpretation of the marginal average profit of producing 40 mowers is Select one: O a. Can not tell. O b.At production level of 40 mowers a unit increase in production will increase the total profit by $0.40 per mower. O c. At production level of 40 mowers the average profit is increasing at a rate of $0.40 per mower. O d. At production level of 40 mowers the average profit is $0.40 per mower.What is the correct answer?The marginal cost (MC) curve intersects the? Select one: O a. ATC and AFC curves at their minimum point O b. ATC, AVC, and AFC curves at their minimum points O c. AVC and AFC curves at their minimum points. O d. ATC and AVC curves at their minimum points
- When a firm produces one unit, the variable cost is $7. When the firm produces two units, the variable cost is $10. When the firm produces three units, the variable cost is $12. What is the marginal cost associated with three units of production? Select one: O a. 3 O b. 7 O c. 2 O d. 0Imagine a firm in a competitive market comes up with a new production method, which halves its marginal cost at all levels of Q. Fixed costs are unaffected. Which of the following statements are true? O a. The firm's AC at all levels of Q would be lower. O b. The firm would extract an innovation rent from selling at the market price with lower costs. Oc. The firm's point of minimum AC would be a higher level of Q. O d. The innovation would immediately cause the market price to drop.7. You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following data at his present level of production: Output = 2000 pounds, market price = $5.00, total cost =$8000, fixed cost=$2000, marginal cost=$5. The minimum of AVC occurs at {1000 pounds at $2} and the minimum of ATC at {1500 pounds at $3.5}. Please help Jack with the following questions based on the above figures: a. Draw a graph for the raw cotton market and a graph for Jack’s farm current situation that includes MC, ATC, and AVC, labeling all relevant points on axes with numerical values. Is Jack maximizing the profit (minimizing the loss)? Why or why not? Label the total profit/loss area. b. Suppose more farmers enter the raw cotton market until the market price is $3.00 per pound. On the same graphs, show the effect of this change in the market place. Would you like to suggest Jack leaving the market in the short run? Explain your answe
- Show workingI need the answer as soon as possibleEconomies of scale exist when the cost of finding a trading partner is low the firm is too large and too diversified O the firm is too small and too specialized O the long-run average cost decreases as the output increases. O a firm's decision to hire additional inputs does not result in an increase in the price of inputs
- Which of the following best explains why a firm would not stop producing if the loss is less than its fixed costs? O Fixed costs are paid regardless of whether something or nothing is produced, and the firm receives enough revenue per unit to cover ATC and some MC. O Fixed costs are paid regardless of whether something or nothing is produced, and the firm receives enough revenue per unit to cover ATC and some FC. O Fixed costs are paid regardless of whether something or nothing is produced, and the firm receives enough revenue per unit to cover AVC and some FC. O Fixed costs are paid regardless of whether something or nothing is produced, and the firm receives enough revenue per unit to cover AVC and some MC.Mary Berry Cakes produces 10 cakes per day. The marginal cost of the tenth cake is $15, and average total cost of 10 cakes is $6. The average total cost of 9 cakes is: O A. $6. O B. $5. O C. $8. O D. $4. Reset Selection4.