Homework Help is Here – Start Your Trial Now!
Business
Economics
QUESTION 22 The total surplus in a market reaches its maximum when supply and demand are in equilibrium. O True False

QUESTION 22 The total surplus in a market reaches its maximum when supply and demand are in equilibrium. O True False

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

Q23

QUESTION 22 The total surplus in a market reaches its maximum when supply and demand are in equilibrium. O True O False QUESTION 23 In a perfectly competitive market there are O a. few buyers and few sellers. O b. many buyers and many sellers. O c. few buyers and many sellers. O d. many buyers and few sellers. QUESTION 24 Jose's restaurant operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = 20, AVC = 15, and the price per unit is 17. In this situation, O a. the market price will rise in the short run to increase profits. O b. Jose's restaurant is making a loss but should continue to operate, because shutting down is more costly. O c. Jose's restaurant is earning a positive economic profit. O d. Jose's restaurant should shut down immediately.
Transcribed Image Text:QUESTION 22 The total surplus in a market reaches its maximum when supply and demand are in equilibrium. O True O False QUESTION 23 In a perfectly competitive market there are O a. few buyers and few sellers. O b. many buyers and many sellers. O c. few buyers and many sellers. O d. many buyers and few sellers. QUESTION 24 Jose's restaurant operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = 20, AVC = 15, and the price per unit is 17. In this situation, O a. the market price will rise in the short run to increase profits. O b. Jose's restaurant is making a loss but should continue to operate, because shutting down is more costly. O c. Jose's restaurant is earning a positive economic profit. O d. Jose's restaurant should shut down immediately.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Comparative Advantage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS