PriceP₁P2PsPAMCATCAVCIf the short-run price isA) P1; break evenQuantity, the perfectly competitive firm willB) P2; earn negative economic profitC) P3; earn positive economic profitD) P1; earn positive economic profitE) p4; break even The figure below plots a histogram of ages for Olympic athletes. What are ways that this plot couldbe improved: Mark all that apply.count20000-15000-10000-5000-0-202040age_of_athleteDo a scatter plot instead of a histogram to more effectively portray the informationChange X-axis labelAdd a titleCapitalize Y-axis label8060

Perfect competition is the type of competition the market faces where a large number of firms exist…

Price P₁ P2 Pa Pa If the short-run price is A) P1; break even B) P2; earn negative economic profit C) P3; earn positive economic profit D) P1; earn positive economic profit E) p4; break even Quantity MC AVC the perfectly competitive firm will ATC

Price P₁ P2 Pa Pa If the short-run price is A) P1; break even B) P2; earn negative economic profit C) P3; earn positive economic profit D) P1; earn positive economic profit E) p4; break even Quantity MC AVC the perfectly competitive firm will ATC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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30) Which one of the following is true for a perfectly competitive industry? a) there are many big firms b) firms have some influence on the price c) each firm produces identical homogenous products d) entry and exit to the market is not free
What portion of the marginal cost (MC) is the supply curve for a perfect competitive firm (the portion of MC that is above AVC, the portion of MC that is above ATC, all MC) choose one.
Price P₁ P2 Ps PA MC ATC AVC If the short-run price is A) P1; break even Quantity , the perfectly competitive firm will B) P2; earn negative economic profit C) P3; earn positive economic profit D) P1; earn positive economic profit E) p4; break even
Suppose that a perfectly competitive firm's marginal revenue equals $12 when it sells 10 units of output. If the marginal cost of producing the 10th unit is $14, to maximize its profit the firm should A) decrease its production. B) shut down. C) increase its production. D) increase the price it charges for its product. E) do nothing because it is already maximizing its profit.
Cardboard boxes are produced in a perfectly competitive market. Each identical firm has a short-run total cost curve of TC = 4Q3 – 10Q2 + 40Q + 50 where quantity is measured in thousands of boxes per week. The marginal cost of production is given by MC = 12Q2 – 20Q + 40. Calculate the price below which a firm in the market will not produce any output (the shut-down price) in short run.
If the price for a fırm's output is greater than the minimum value of its average variable cost, but less than the minimum value of its average total cost, then the firm should shut down in the short run, but resume producing in the long run. the firm should continue producing in the short run, but exit the market in the long run. the firm is earning positive economic profit. the firm should shut down in the short run and exit the market in the long run. the firm should continue producing in both the short run and the long run.
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit, the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4
A9. A firm in a perfectly competitive market has a short-run total cost function equal to SRTC=4+20q, where q is the number of units the firm produces. The firm faces a market price of $10. Enter the optimal number of units should this firm produce to profit maximize?
A perfectly competitive firm can A) sell all of its output at the prevailing market price. B) set a higher price to customers who are willing to pay more. C) raise its price in order to increase its total revenue. D) sell additional output only by lowering its price. E) usually not sell all the output it produces, but still "over-produces" because there are some periods when it can sell the extra output at very profitable prices.
Consider the market for ice cream. Suppose that this market is perfectly competitive. The cost structure of the typical ice cream producer is as follows. Average total cost is equal to 50 ATC(Q) = +;Q, average variable cost is equal to AVC(Q) Q, and marginal cost is equal to MC(Q) = Q. How many ice cream cones will each producer sell in a long-run equilibrium in the market for ice cream?
d, e, & f Consider a perfectly competitive industry where the typical firm has long run Total Cost TCLR = q2 + 2q + 196.a) Find the minimum efficient scale of the typical firm. MES = 30 b) Find the long run equilibrium price. P = 30 Suppose demand in this industry is Qd = 1,700 – 10P.c) Find the long run equilibrium quantity and how many firms can survive in this industry in the long run. Equilibrium Quantity = 1400 and # of firms = 100 Suppose government introduces a $10 per unit tax collected from sellers.d) The tax alters the long run total cost of the typical firm. In which way?e) Does the tax affect the minimum efficient scale of the typical firm?f) In the long run, by how much will the equilibrium price increase in response to the tax?
The graph below shows a perfectly competitive firm in short run equilibrium, where the firm has chosen the output level maximizing its profit. Consider the level of profits being earned here, and what will happen over time. What will happen in the long run? Note that the horizontal demand curve, D1, is also equivalent to marginal revenue and price. Group of answer choices The market price will increase causing economic profits to increase Demand will increase causing economic profits to increase The market price will decrease until economic profit is zero