AaBBCCD AaBBCCL AaBbCcDc AaBbC AaBbCc) AdDTitle1 NormalBody Text 1 No Spac... Heading 1 Heading 2E A- . A-StylesParagraph8. When firms are said to be pnce takers, it mmplies that if a firm raises its price,a. buyers will go elsewhere.b. buyers will pay the higher price in the short run.c. competitors wvill also raise their prices.d. firms in the industry will exercise market power.9. If a firm in a competitive market doubles its number of units sold, total revenue for the fim willb. double.a. more than double.c. increase but by less than double.d. may increase or decrease depending on the price elasticity of demand.Question 1.structure of aThe graph shows the costmonopolistic firm. Use the graph to answer thefollowing questions.a. What is the profit-maximizing output and pricelevel of monopolist?MCATC10AVCb. Calculate the economic profit. Show it on thegraph.c. Calculate the deadweight loss from monopoly.Explain in words what this means.d. Find the price and quantity that wouldmaximize social welfare.4567 81012Quan hly knib per dayQuestion 2.ASUS112 /Aprt scdeleteinsert58*U1OĞKBTo

Paragraph Styles 8. When firms are said to be price takers, it implies that if a firm raises its price, a. buyers will b. buyers will pay the higher price in the short run. c. competitors will also raise their prices. d. firms in the industry will exercise market power. go elsewhere.

Paragraph Styles 8. When firms are said to be price takers, it implies that if a firm raises its price, a. buyers will b. buyers will pay the higher price in the short run. c. competitors will also raise their prices. d. firms in the industry will exercise market power. go elsewhere.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. When this firm is producing at the profit-maximizing price and quantity, its total revenue is $_______. 4. The total revenue when a firm is profit maximizing is $________. 5. The total cost when a firm is profit maximizing is $_________. 6. The profit when a firm is profit maximizing is $________.
In a kinked demand market, whenever one firm decides to lower its price, A. other firms will automatically follow. B. none of the other firms will follow. C. one half of the firms follow, and one half of the firms don't follow the price cut. D. other firms all decide to exit the industry E. all the other firms raise their prices.
The figures below show (on the left) two possible demand curves and (on the right) two possible supply curves in the perfectly competitive hamburger market. Price per hamburger 0 A B D₂ D₁ Hamburgers per month Price per hamburger 0 Select one: a. Movement along D₁ from Point A to Point B. b. Demand shifts from D₁ to D₂. F c. Movement along S₁ from Point F to Point G. d. Demand shifts from D₂ to D₁. G Hamburgers per month Assume that people consume either hamburgers or hot dogs. What will be the result of a decrease in the price of hot dogs? Hint: Are hamburgers and hotdogs complements or substitutes? S₂ S₁
What is a price taker? A price taker is A. a firm with a perfectly inelastic demand curve. B. a firm that has the ability to charge a price greater than marginal cost. C. a firm that is unable to affect the market price. D. a firm that does not seek to maximize profits. E. a firm with a downward-sloping demand curve. When are firms likely to be price takers? A firm is likely to be a price taker when A. it has market power. B. firms in the industry collude. C. it sells a differentiated product. D. it represents a small fraction of the total market. E. barriers to entry are substantial.
What is the correct answer? In pure competition, if the market price of the product is lower than the minimum average total cost of the firms, then A. some firms will enter the industry and the industry supply will increase B. other firms will exit the industry and the industry supply will decrease C. some firms will exit the industry and the industry supply will increase D. other firms will enter the industry and the industry supply will decrease
Compare and contrast the decision-making processes of a competitive firm versus a monopoly firm. a. The difference between C and M markets in terms of the (homogeneity or uniqueness of product, barriers to enter and number of firms). b. You must point to the difference in the demand curve for a C firm and that for a M firm. c You must refer to the long run profit (or not) of the C as well as M firm. d. You must point to whether C and M firms are efficient or NOT. Graphs are welcome, not manadatory.
Which of the following is NOT an expected outcome for a firm in a market where sellers have market power? Select one: a. An inefficiently small output b. Lower costs c. Higher prices d. Larger economic profits
Price 10 Quantity a. This firm will produce units of output at a price of b. The firm will earn a profit or loss (circle one) of c. What is the firm's short-run shut down price? d. What is the long-run market equilibrium price and quantity? e. What is the firm's profit or loss in the long run f. What kind of firm is this?
If a firm charges a lower price they will have a lower profit margin but a higher profit; if a firm charges a higher price they will have a higher profit margin but a lower profit. Which of the following statements is accurate? A. The firm should charge a lower price for the higher profit. B. The firm should a higher price for the lower profit. C. The firm should charge a higher price for the higher profit margin. D. Whether the firm should charge a higher price or lower price indeterminate.
Give typing answer with explanation and conclusion Sort the following characteristics by whether they describe competitive markets, firms that can perfectly price-discriminate, both, or neither. maximize total surplus result in some deadweight loss zero economic profit in the long run eliminate consumer surplus
Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $240 $90 $60 $180
Categorize each seller below on the basis of the type of market it operates in. a. A rice farmer operates in a(n) [perfectly competitive market. b. A bed and breakfast in a popular resort operates in a(n) (Click to select) c. A manufacturer of wide-bodied aircraft operates in a(n) (Click to select) market. d. A company given an exclusive license to provide taxi service in a small town operates in a(n) (Click to select) (Click to elect monopolistically competitive oligopolistic monopolistic perfectly competitive market. LUMBE market.