QUESTION 15 If a firm decides to exit the market will be paying a. only the fixed costs but not the variable costs. O b. neither variable costs nor fixed costs. O c only the variable cost but not the fixed cost. Od. both variable costs as well as fixed costs.
Q: 20 MC ATC AVC 16 12 8. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) In the above figure, at…
A: A perfectly competitive market is one that has a large number of buyers and sellers, selling…
Q: A firm will at the output where marginal cost increases O a. begin to experience diminishing returns…
A: Marginal cost refers to the Change in total cost with respect to change in quantity.
Q: Which of the following statements is false? O a. Fixed costs exist in the short run, but not in the…
A: The total cost of production (TC) is the lowest cost of producing a certain quantity of output. This…
Q: (Figure: Interpreting Short-Run Cost Curves) Given the information from the figure, if price equals…
A: There are three short run cost curves showing in the above graph. Marginal cost curve, average…
Q: The current market price in a competitive industry is $15. Every firm in the industry operates a…
A: In competitive industry, there are large number of firms selling identical goods.
Q: $ Total Cost 100 140 Quantity 160 190 4 240 300 370 450 550 Refer to the above information to answer…
A:
Q: Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $175,000 in total…
A: Economic profit = Revenue - Explicit cost - Alternate income given up (Implicit cost) = 175,000 -…
Q: Firms have over their costs in the short run. Select one: O A. no control; fixed O B. no control;…
A: A fixed cost is a expense not increasing with an increase or decrease in the quantity of products or…
Q: When a firm increases its output by one unit, its average total cost (AC) decreased, this implies…
A: The cost that depicts the total cost of a product or service that is being divided by the number of…
Q: QUESTION 10 If a Cobb Douglas technology (with factors having strictly positive marginal product)…
A: Cobb Douglas's production function depicts the technological relationship between the amount of…
Q: Marginal cost can be defined as the: O Change in fxed costs resulting from one more unit of…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: The competitive firm's long-run supply curve is that portion of the marginal cost curve that lies…
A: A perfectly competitive firm's short-run supply curve is that portion of the marginal cost curve…
Q: Why do economists classify normal profits as costs? O A normal profit is the amount required to…
A: Profit is the difference between total revenue and total cost. Profit=TR-TC Normal profit is also…
Q: QUESTION 4 Marginal cost is the: O A. rate of change in total fixed cost that results from producing…
A: A company experiences two sorts of costs in the short-run. The first one is variable cost that…
Q: Which type of cost does depend on a firm's output? Select one: O A. marginal cost O B. total cost O…
A: Fixed cost is the cost that is incurred on fixed factors and does not change with the level of…
Q: For one period, a firm has fixed cost equal to $8,000 and a marginal cost of $7 per unit of output…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Ali is the managerial accountant in charge of Company A, which sells water bottles. He previously…
A: The formula for break-even quantity is as follows : Break-even quantity = Fixed cost / (Price -…
Q: What is the relationship between a firm’s supply curve, its marginal cost curve, and its average…
A: Supply curve has a positive slope indicating greater quantities are supplied at higher prices.…
Q: You have started your own bakery and you are the sole employee. Your total revenue was $100,000.…
A: 1. Given, Total revenue = $100,000 Explicit cost = $60,000 Implicit cost = $80,000 Since the cost…
Q: COST QUANTITY OF OUTPUT TC Refer to Figure 13-3. Which of the following can be inferred from the…
A: Diminishing marginal utility alludes to the peculiarity that each extra unit of gain prompts a…
Q: 28 - : Total variable cost of firm X is 100 and total fixed cost is 20 TL. The firm produces 40…
A: The process of production uses various inputs and converts them into finished goods using production…
Q: QUESTION 20 In a perfect competitive market, companies will make zero profits in the long run…
A: Perfect competition describes a market arrangement in which major vendors of a good all provide the…
Q: Refer to the figure below. This firm can earn a positive profit at units of output. Price $33.50…
A: The firms are the sellers in the market who get involved in the production process and sell goods…
Q: QUESTION 19 Marginal cost is the: O B. change in total cost that results from producing one more…
A: Marginal cost is the change in total cost that results from producing one more unit of output.…
Q: Figure 6.1 MC ATC AVC MR2 MR, 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total…
A: Here, it is given that firm is producing 60 units with the minimum average total cost of $4.
Q: Which of the following causes an upward shift in a firm 's short-run marginal cost curve? OAn…
A: Recall that, in the short run, fixed costs do not change and only variable cost matter. Also,…
Q: 43. Refer to the table. reto Joubng Total Product Total Fixed Cost Total Variable Cost $150 $0 150…
A: Answer: Short-run supply curve: the short-run supply curve is the rising portion of the marginal…
Q: The short run is a period of time in which: OC. Prices and wages O A. The quantities of some…
A: Input resources are those resources that are used in the production process to produce the output.
Q: are likely a fixed cost of a firm. O a. The payments for supplies O b. Travel expenses to meet with…
A: Costs which are fixed in short run is called fixed cost.
Q: Marginal cost tells us a. the amount fixed cost rises when output rises by one unit O b. the…
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: Question 13 How can a firm avoid fixed costs in the long run? O by incorporating O by expanding O by…
A: Short run is when there exists a fixed factor of production and other are variable factors of…
Q: Should a firm shut down if its weekly revenue is $1,000, its variable cost is $900, and its fixed…
A: A shutdown point is a point where the marginal revenue of the firm becomes equal to the variable…
Q: he law of diminishing returns indicates that C A. the demand for goods O B. because of economies and…
A: The production function exhibits the relationship between inputs and output. Inputs are broadly…
Q: Total cost is calculated as Lütfen birini seçin: O A. the sum of average fixed cost and average…
A: Sum of average fixed cost and average variable cost is the average total cost. The sum of all the…
Q: rutabagas) (dollars) (dollars 12 1 10 22 2 20 28 3 30 30 4 40 31 5 50 34 60 45 7 70 59 8 80 80 The…
A: Profit is the difference between the total revenue and total cost. i.e. Profit = Total Revenue -…
Q: Consider a perfectly competitive firm with the following marginal cost (MC), average total cost…
A: Fixed cost does not depend on output produced. It remains constant even when firm produces 0 units
Q: A firm can minimize its losses by shutting down when are less than costs. O a. variable costs; fixed…
A: Since you have posted multiple questions, as per the guideline we can solve only the first.
Q: If a firm will produce an additional unit of good or services, determine what will happen to their…
A: The total cost of production equals the sum of the fixed cost and the variable cost. The fixed cost…
Q: Refer to the information provided in Figure 9.4 below to answer the question(s) that follow. MC AVC…
A: The given graph shows a firm in perfectly competitive market which produces output at MR=MC
Q: You own a firm in a perfectly competitive industry producing and selling gold recklaces. You know…
A:
Q: Average total cost equals O a. change in total costs / quantity а. produced O b. (fixed costs +…
A: Total cost is defined as the sum of all the expenses being incurred by the producer on order to…
Q: 1. Supposed that a firm's fixed cost increase due to a rise in rental payment. What impact will this…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: A profit-maximizing business incurs an economic loss of $10,000 per year. Its fixed cost is $15,000…
A: Given Case 1: A profit-maximizing business incurs an economic loss of $10,000 per year. Its fixed…
Q: A firm has a fixed production cost of $1,000 and a constant marginal cost of production of $700 per…
A: Given that, Total fixed cost (TFC) = $1,000 Marginal cost (MC) = $700 1)Total fixed cost remains…
Q: nould a competitive firm ever produce when it is losing money? Why or why not? A. No, the firm…
A: A firm that is competitive in nature is, in turn, a price taker, which implies that it should accept…
Q: MC ATC AVC MR2 MR, %3D 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total revenue if…
A: The formula is: Total revenue=Q*P Q=60 units
Q: If P = MC and MC <ATC, then a perfectly competitive firm will earn profits. a. negative O b.…
A: Inna market, the relationship between MC and ATC is used to determine the optimal output level so…
Q: Economic profit or loss is equal to total revemnue mulls O all explicit costs O all implicit costs O…
A: When we say economic profit that means we incorporate opportunity cost in the total cost in…
Q: QUESTION Other things equal, if the fixed costs of a firm were to increase by $100,000 per year,…
A: Fixed cost is a cost which remain fixed or unchanged at all the level of output. Fixed cost is…
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- A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its O a. Average variable cost O b. Marginal revenue Oc. Average fixed cost O d. Average total costA marginal cost curve intersects average total cost at $6. This curve also intersects average total cost at $9. a. It is most accurate to say this firm will generate a loss at any price below $6 below $9 above $9 above $6 c. Which of the choices best explains why this price will cause the firm to shut down instead of continuing to operate at a loss? O O O O O total revenue > total variable costs total revenue > total fixed costs total revenue total fixed costs b. At what price level will this firm shut down immediately, with certainty? Any price below $9 Any price above $9 Any price below $6 Any price above $6The short-run supply curve for a perfectly competitive firm is its Select one: O a. marginal cost curve above the horizontal axis O b. average cost curve above its shutdown point O c. marginal cost curve above its shutdown point O d. average cost curve above the horizontal axis
- If a graph is used to compare total revenue and total cost of a perfectly competitive firm, then the horizontal axis of the graph will represent the and the vertical axis will represent OA. price, measured in dollars; quantity of goods produced O B. total costs measured in dollars; quantity of goods produced O C. quantity produced; both total revenue and total costs, measured in dollars. O D. quantity produced; total revenue and total variable costs, measured in dollars.A strawberry farmer, operating ih a perfectly competitive market, is currently producing 99 packs of strawberries. The market price for a pack of strawberries is $6 a pack. The marginal cost of producing one more pack for the farmer is $5. What is the marginal revenue the farmer will receive from producing his 100th pack of strawberries? (Hint: If you aren't sure what marginal revenue means, look it up before choosing an answer) O $0.06 O $6 O $1 O $100Consider the following data facing a perfectly competitive firm: price = $20, quantity of output produced = 600 units, average total cost = $16, average fixed cost = $12, and marginal cost = $22. This firm should O a. increase output to maximize profit. O b. not change output in the short run since profit is already maximized. O c. shut down immediately. O d. reduce output but not shut down in the short run to maximize profit. O e. raise price above $20 to maximize profit in the short run.
- In perfect competition, what is the relationship between the demand for the firm's output and the market demand? In a perfectly competitive market, the market demand is O A. perfectly elastic; perfectly elastic O B. shown by a downward-sloping curve; perfectly elastic O C. shown by a downward-sloping curve; shown by a downward-sloping curve O D. perfectly elastic; shown by a downward-sloping curve and the demand faced by the individual firm is CAssume Cathy's Cupcake Company operates in a perfectly competitive market producing 10,000 cupcakes per day. At this output level, marginal cost exceeds this firm's price. Assuming price exceeds average variable cost, to maximize profits Cathy's should O a. stop producing since it is earning a loss. O b. decrease their output. Oc make no adjustments as they are already maximizing their profits. Od. increase their output. Both Stan and Kyle own potato chip factories. Stan's factory has low fixed costs and high variable costs. Kyle's factory has high fixed costs and low variable costs. Currently, each factory is producing 5.000 bags of potato chips at the same total cost. Complete the following statement with the correct answer. If each produces more, the costs of Kyle's factory will exceed those of Stan's factory. Ob. more, their costs will be equal. less, the costs of Kyle's factory will exceed those of Stan's factory. Od. less, their costs will be equal. If a firm is producing where…Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: Refer to Figure 14-1. If the market price falls below $6, the firm will earn O a. positive economic profits in the short run. O b. negative economic profits in the short run but remain in business. O c. negative economic profits in the short run and shut down. O d. zero economic profits in the short run. PRICE 20 18 16 14 13 10 8 6 4 2 MC 1 2 3 QUANTITY 4 ATC AVC 5
- Which of the following is always true for the profit-maximizing firm in a perfectly competitive output market (as discussed in Chapter 8): O a. The economic profit at the profit maximizing output is negative. O b. The profit maximizing output is equal to the price given by the market. Oc. The economic profit at the profit maximizing output is positive. O d. At profit maximizing output, the slope of the total cost curve is equal to the slope of the total revenue curve. Say you have following Engle curve (which are the dashed lines) relating household income and pollution: FIGURE 1.-POLLUTION EMBODIED IN HOUSEHOLD CONSUMPTION: PM10 O 1984 2012 10 15 Average After-Tax Income (10,000 2002 $) Which of the following statements about this Engle curve is true in 2012? Select one: O a. Household pollution is a Giffen good. O b. Household pollution is a normal good. O c. Househald pollution is an inferior good. O d. Household pollution starts as an inferior good, and then becomes a normal good.…A perfectly competitive firm maximizes profit by producing 100 units at an ave total cost of $12 and an average fix cost of $5 for a market price of $10. Its shutdown price will be - $10 O b. $5 $7 O d. $12 Show Transcribed Text Under perfectly competitive conditions, a firm should continue to produce - OaUntil total revenue is as high as possible Ob Until price is equal to marginal cost Oc Until profits are negative Od. While costs are falling, then stop Oe. Until there is no more revenue Show Transcribed Text A perfectly competitive firm maximizes profit by producing 200 units at an average total cost of $15 and an average fix cost of $5 for a market price of $25. Its total fixed cost will be- O a $3000 O b. $1000 O c. $1500 Od. $2000 Show Transcribed Text According to this principle, as successive units of a variable factor (say labor) are added to a fixed factor, beyond some point the marginal product attributed to every additional unit of that variable factor will decline. O a.…In the table below, the firm; Output Total Revenue Total Cost $0 $30 $60 $90 $120 $150 $180 $25 $49 $69 $91 $117 $147 $180 O a. cannot be in a perfectly competitive industry, because its short-run economic profits are greater than zero. O b. must be in a perfectly competitive industry, because its marginal cost curve eventually rises. O c. cannot be in a perfectly competitive industry, because its long-run economic profits are greater than zero O d. must be in a perfectly competitive industry, because its marginal revenue is constant. 123 456
