O Macmillan LearningIf a firm is producing an output level greater than the equilibrium output level in a perfectly competitive industry, whichstatement is FALSE?Marginal cost will exceed price.O Marginal cost will equal price.Public interest would have been better off if resources were used to produce a more highly valued product.O Firms produce more output than what is valued by consumers.

In perfectly competitive industry, there are many firms producing identical goods.

Macmillan Learning If a firm is producing an output level greater than the equilibrium output level in a perfectly competitive industry, which statement is FALSE? Marginal cost will exceed price. Marginal cost will equal price. Public interest would have been better off if resources were used to produce a more highly valued product. Firms produce more output than what is valued by consumers.

Macmillan Learning If a firm is producing an output level greater than the equilibrium output level in a perfectly competitive industry, which statement is FALSE? Marginal cost will exceed price. Marginal cost will equal price. Public interest would have been better off if resources were used to produce a more highly valued product. Firms produce more output than what is valued by consumers.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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An industry currently has 100 firms, each of whichhas fixed cost of $16 and average variable cost asfollows:Quantity Average Variable Cost1 $12 23 34 45 56 6a. Compute a firm’s marginal cost and average totalcost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How muchdoes each firm produce? What is the total quantitysupplied in the market?c. In the long run, firms can enter and exit themarket, and all entrants have the same costs asabove. As this market makes the transition to itslong-run equilibrium, will the price rise or fall?Will the quantity demanded rise or fall? Will thequantity supplied by each firm rise or fall? Explainyour answers.d. Graph the long-run supply curve for this market,with specific numbers on the axes as relevant.
To sell one more unit of output, the seller must make one more and sell it for O less than the price at which the last unit sold the marginal revenue O the cost of the resources used to produce it O the same price as the last unit sold
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A firm in a perfectly competitive market has an average total cost of $40 for the 100th good it sells. Its fixed costs are $100. The average total cost of the 101th good is $41. If the market price is $50 this firm should O sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue. O sell 101 because price is greater than average total costs. O sell 101 goods because it adds to profits. O sell 101 goods because its fixed costs are so low. 55. つ25 MacBook Air 000 esc F1 F2 F3 F4 F5 F7 23 $ & 1 3 7 Q W E R Y tab A S F G caps lock C V B shift alt
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When a firm makes profit, this sends a signal to others. More competitors would enter the business, increasing supply and driving prices O positive economic profit; up O positive economic profit; down O pormal profit; down O positive accounting profit; down.
Consider a firm whose cost of producing each unit is the same at all output levels. Which of the following statements is correct regarding its isoprofit curves? Select one: Each isoprofit curve depicts the firm's profit for different outputs for a given price of the output а. good. O b. The isoprofit curves are upward-sloping. c. The isoprofit curves cannot cross. d. The higher the price the higher the profit, so constant profits imply constant prices.
QUESTION 23 If a perfectly competitive firm incurs an economic loss, it should: O Shut down if this loss exceeds fixed cost. O Shut down in long run. O Shut down immediately. O Try to raise its price. QUESTION 24 Suppose a firm is producing a level of output such that MR > MC. What should the firm do to maximize its profits? O The firm should increase price O The firm should do nothing if it wants to maximize the difference between MR and MC to maximize its profits. O The firm should increase output O The firm should hire less labor Click Save and Submit to save and submit. Click Save All Answers to save all answers. DELL F1 F2 F3 F4 E5 F6 F7 F8 F9 F10 %23 %