Q6 (3 Points): Would a firm earning zero economic profit continue to produce (Perfectlycompetitive market), even in the long run?In long-run competitive equilibrium, a firm earning zero economic profita- will continue to produce because suchprofit's as high a return as could be earned elsewhere.b- will not continue to produce because it could earn a better return in another industry.c- will not continue to produce because this return is not covering its opportunity costs.d- will not continue to produce because it would be better off shutting down.e-will not continue to produce because such profit corresponds with negative accountingprofit.

> Option a: This is the correct option. In long-run competitive equilibrium, a firm earning zero…

Answered: Q6 (3 Points): Would a firm earning…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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PROBLEM (4) The market for plastic toys is perfectly competitive, and it is composed of many identical firms, each with the total cost function TC(q) = ½ q² + 40q + 2,450 (a) What is the short run shut down price and the long run entry/exit price for this market? (b) Carefully draw the short run supply graph of an individual firm, and separately the long run aggregate (market) supply graph for this industry. (c) What is the optimal quantity to produce for the firm and the corresponding net profit, if the market price is (i) %3D $30? (ii) $70? Now, suppose in addition that the market demand is Q = 18,000 - 100p. (d) In the long run equilibrium, what is the market price and quantity? How many units does each firm in the market produce, and what is its net profit? How many firms are there in the long run equilibrium? (e) Suppose the government imposes a $14 per unit tax on plastic toys. Re-answer part (d) %3D
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The first graph depicts the industry supply and demand for yoga classes. Assume that the market is initially in equilibrium at the intersection of lines D and S. The second graph is the cost information for a single firm in this perfectly competitive industry. Assume there is an increase in the industry demand for yoga classes and the industry demand curve moves from D to D1. Furthermore, assume this is a constant cost industry. Shift the supply (S) curve to the correct positions to reflect long-run equilibrium in this constant cost industry. Next, use the interactive line to trace out the long-run industry supply curve (LRIS) for this industry. Price per class Yoga Industry Supply and Demand Short-run marginal cost Long-run average cost Short-run average cost S Price=Marginal revenue DRIS D1 Quantity of classes Quantity of classes Price ($)
The treadmill market is a competitive industry with long-run economic costs. Provided the following information, what is the long-run equilibrium price in this industry? CLR(q) =32+2q² MC=4q Avg. cost = 32/q+2q A အင်းသား
HELP PLEASE!!! There are two questions here. 1. Is the firm maximizing profit? 2. What quantity of output should the firm produce in the long run?
Problem 2: Suppose in a perfectly competitive industry that the market supply and demand forces combine to produce a short-run equilibrium price of $70. Suppose further that a single firm in this industry has a weekly total cost function expressed by the equation: (b) TC=200+50q - 6q² + (1/3)q³. What is this firm's profit maximizing level of output? What are its profits? At what level of (q) will this firm shut down its operations? At what level of (q) will the firm break even.
Suppose that a perfectly competitive firm faces a market price of $12 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output level of 1,800 units. If the firm produces 1,800 units, its average variable costs equal $7.00 per unit, and its average fixed costs equal $1.00 per unit. What is the firm's profit-maximizing (or loss-minimizing) output level? What is the amount of its economic profits (or losses) at this output level?
3
7. PLEASE I NEED HELP NOW!! :))) just answer the letter. By referring to the image insert: A firm has a pure and perfect competition market with the following cost structure: If the market price is $4, the firm: Will produce 2 units in the short term and will leave the market in the long term. • b) will produce 4 units in the short term and will leave the market in the long term. • c) will close in the short term and leave the market in the long term. • d) will produce 3 units in the short term and will leave the market in the long term.
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Suppose that a perfectly competitive firm faces a market price of $7 per unit. The output level corresponding to a marginal cost of $7 per unit is 1,000 units. At 1,000 units, its average variable costs equal $8 per unit, and its average fixed costs equal $1 per unit. The firm's profit-maximizing (or loss-minimizing) output level = . Write number only. The firm's economic profit (or loss) at this output level = . Write either profit number or loss number: e.g. profit 2000.
Answer Box: -5,0,3,5,10,30,45,50, continue to produce, shut down, Other

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