QUESTION There is free entry and exit in O only perfect competition O only in monopolistic competition O both perfect competition and monopolistic competition O neither perfect competition nor in monopolistic competition QUESTION 2 The equality of marginal revenue and marginal cost to reach a profit maximization level applies to O perfectly competitive markets O monopoly markets O monopolistically competitive markets O all kind of markets QUESTION 3 The correct formula to calculate marginal cost is O total cost/Quantity O change in total cost/change in quantity O total costx quantity O average total cost/quantity

QUESTION There is free entry and exit in O only perfect competition O only in monopolistic competition O both perfect competition and monopolistic competition O neither perfect competition nor in monopolistic competition QUESTION 2 The equality of marginal revenue and marginal cost to reach a profit maximization level applies to O perfectly competitive markets O monopoly markets O monopolistically competitive markets O all kind of markets QUESTION 3 The correct formula to calculate marginal cost is O total cost/Quantity O change in total cost/change in quantity O total costx quantity O average total cost/quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The profit maximizing rule states that a business maximizes profits when marginal cost equals Select one: O a. Variable costs O b. Fixed cost O c. Marginal revenue O d. None of the above
Suppose the capacity of the Salt Lake City Bees stadium is 25,000 seats. What is the profit maximizing price of a ticket? (Assume capacity constraints hold and that marginal cost is zero up to the capacity of the stadium.) O $60 O $50 O $40 O $10
Please help im begging
7. A car manufacturer builds both left-hand and right-hand drive cars. It estimates that its costs and the demand faced in each of these respective markets can be modelled by the functions below P1 = 520 – 3Q1 P, = 720 – 4Q2 - TC = 100Q1 + 120Q2 + 4Q1Q2 What is the maximum profit the firm could make? O 24300 O 24800 25300 25800 26500 O0000
In the following vertical marketing system the channel members agree to cooperate with each other bounded by a contract in order to maximize profits. O a. Corporate VMS O b. Horizontal VMS O c. Contractual VMS O d. Administered VMS
(Figure: Price and Quantity V) At the profit-maximizing output level, this firm earns a profit of: Price ($) 10 9 8 O $48. O $60. 7 6 5- 732- 4 3 O $60. 2 1 MC L O $20. 0 2 4 6 -8 ATC D 10 12 14 16 18 20 Quantity
S2 Refer to the above figure. Which diagram shows the effect on the market of cellphones when the demand for cellphones has increased? Select one: O a. graph C O b. graph D O c. neither graph O d. both graphs
The graph below shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost: 100 80 60 S 40 0 100 200 300 400 M Multiple Choice 500 Quantity How should the firm allocate sales between the two markets? O Multiple Choice O MM₂ O MO O 0₂ LLL 600 How should the firm allocate sales between the two markets? O MRT 700 600 150 in each market D₂ I 900 1000 250 in market 1, 200 in market 2 150 in market 1, 300 in market 2 200 in each market 300 in market 1, 100 in market 2
43)
$6.40 5.50 4.70 4.00 2.50 A C E G 012 3 O $5.50. O $6.00. O $16.00. D O $22.00. MC ATC 6 The total profit at the profit-maximizing rate of output is MR Demand 7 S k
PRICE Graph (a) MR QUANTITY MC ATC D PRICE Graph (b) MR QUANTITY Figure 17-4 MC ATC D Graph (c) MR QUANTITY MC ATC D Graph (d) QUANTITY Refer to Figure 16-4. Which of the graphs depicts a short-run equilibrium that will encourage the entry of other firms into a monopolistically competitive industry? O a. Graph (b) O b. Graph (d) O c. Graph (c) O d. Graph (a) MC ATC D
3.30 3.00 2.70 2:40 2.10 1.80 1,50 1.20 0.90 0.60 0.30 50 100 150 If price is $2.40, what is the output choice for the firm? O a. 200 O b. 250 O c. 150 O d. 300 200 250 300 Marginal Cost 350 Average Total Cost Average Variable Cost 400