QUESTION 2:Consider the cost curves for a perfectly competitive firm.MC$9.00$8.00$7.00$6.00ATC$5.00$4.00AVC$3.00$2.00$1.00$0.00100200300400380480500600QuantityA) Refer to the graph above. If market price of product is $7, the fim producesmaximize profits.units toa. 380b. 500с. 600d. 480B) Refer to your answer above. At the profit maximizing output level, the firm makes a total profit(loss) of $in the long-run:and the firm can expecta. $500; entryb. $480; entryc.$ 800; entryd. $0; no entry no exitPrice, Cost C) Refer to the graph above. The firm should shut down if the price falls belowaccept the total loss ofanda. $3.00; -$800b. $5.00; $760c. $7.00; $500d. $2.00; $500| D) The firm's supply curve is:a. The portion of ATC curve above price of $5 c. The portion of MC curve above $3b. The AVC curve above $4d. The marginal cost curve above $5EIn the long-run equilibrium, the fim will charge the price of_output and ean- produceunits ofeconomic profit.a. $3.00; 200; $600 in profitc. $7:00; 500; -$1,000o lossb. $5; 380; normal profitd. $9, 600; positive economic profit of $600F) Refer to the graph above. How often, does the firm in the graph above engage in pricediscrimination? Why?A) RarelyB) Very oftenC) AlwaysD) Never

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QUESTION 2: Consider the cost curves for a perfectly competitive fim. $9.00 $8.00 $7.00 $6.00 ATC $5.00 $4.00 AVC $3.00 $2.00 $1.00 $0.00 100 200 300 400 500 600 380 480 Quantity A) Refer to the graph above. If market price of product is $7, the firm produces maximize profits. units to a. 380 c. 600 d. 480 b. 500 B) Refer to your answer above. At the profit maximizing output level, the fim makes a total profit (loss) of $ and the firm can expect in the long-run: a. $500; entry b. $480; entry c.$ 800; entry d. $0; no entry no exit Price, Cost

QUESTION 2: Consider the cost curves for a perfectly competitive fim. $9.00 $8.00 $7.00 $6.00 ATC $5.00 $4.00 AVC $3.00 $2.00 $1.00 $0.00 100 200 300 400 500 600 380 480 Quantity A) Refer to the graph above. If market price of product is $7, the firm produces maximize profits. units to a. 380 c. 600 d. 480 b. 500 B) Refer to your answer above. At the profit maximizing output level, the fim makes a total profit (loss) of $ and the firm can expect in the long-run: a. $500; entry b. $480; entry c.$ 800; entry d. $0; no entry no exit Price, Cost

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 3PA

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