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6.
Refer to Figure 2. This farmer's shutdown point is at a price of
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- Part a a.an economic profit b.a normal profit c.a loss Part c a.an economic profit b.a normal profit c.a loss . .1.The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. A. The price of fertilizer must be less than marginal cost. B. The price of fertilizer must be equal to average variable cost. C. The price of fertilizer must be less than average total cost. 2. If firms in the market are producing output but are currently making economic losses,_________ illustrates the present situation for the typical firm in the market, and_________ indicates the corresponding supply curve. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. A.The quantity supplied by each firm will decrease. B.The total quantity supplied to the market will decrease. C.The…4.Average variable cost is found by dividing.............. a. variable cost by output b. output by variable cost c. marginal cost by output d. output by marginal cost 5. A profit maximizing firm will increase production a. price is less than marginal cost b. price equals marginal cost c. price exceeds marginal revenue d. price exceeds marginal cost 6. Which statement is true? a. Accounting profits are greater than economic profits. b. Economic profits are greater than accounting profits. c. Accounting profits are equal to economic profits...
- Price Qs (Total Mkt) Qa (Total Mkt) $360 2000 800 290 1800 1000 230 1600 1200 200 1400 1400 140 1200 1600 110 1000 1800 80 800 2000 #1. What will equilibrium price be? # 2. What will equilibrium output be for each firm? # 3. What will the profit or loss be for each firm at equilibrium? # 4. Will firms enter or exit this industry in the long run? Blank # 1. APrice PIP Price Pie OOOO 0 Q-Q₁ Quantity (A) OA OB. C. D. S₁ fo 0/ Price Price Q Pb 0 SS₁ Q-Q₁ Quantity (C) QnQb Quantity (D) Which diagram best represents the problem faced by farms in the short run? P 0 Qp D QpQnQb Quantity (B) DFigure 12-6 Price (dollars per pound) Market 3 price 2 0 10 20 30 MC ATC D=MR 40 Quantity (thousands of pounds) Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his profit Jason should keep production at 20 thousand pounds. O increase production to the output rate indicated by point e. increase production to the output rate indicated by point d. O decrease production to the output rate indicated by point a.
- I. A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels: Total revenue = $1,450 Total cost = $1,500 Total variable cost = $1,300 What would you suggest? a. Shut down. b. Continue to produce because the loss is less than the total fixed cost. c. Increase production to lower the marginal cost. e. Raise the price. II. At current long-run production levels, the marginal revenue of a competitive firm is $15 and the marginal cost of the firm is $15. If the market is perfectly competitive, the firm should a. cut back on production. b. stop production all together. c. produce more. d. continue producing at current levels.A perfectly competitive firm maximizes its profit by producing the output at which its marginal cost equals its Select one: a. average variable cost. b. marginal revenue. c. average total cost. d. average fixed cost. Clear my choice4. If a competitive firm can sell its product at $400 per unit and the marginal cost of the product is MC = 150 + 3Q, then the firm will produce (round to the closet solution) a. 450 Units b. 83 Units c. 133 Units d. 150 Units
- 1. The market for manicures and other nail treatments is very competitive. How would the following developments affect the number of nail treatments that a typical nail salon wants to supply in the short run? a. Heightened concern about their appearance causes people to want more manicures at a given price. b. The government requires all nail salons to pay a new yearly licensing fee to operate. c. Worse job prospects elsewhere in the economy cause more people to want to become manicurists, causing the wages of manicurists to fall.1. The profit maximizing output for this firm is . 2. In the short-run, this firm will earn $ 3. In the long-run, this firm will earn $ please refer to figure providedMatch the line number with the correct function. $ Line 2 Line 3 Line 4 a. Total Cost b. Total Revenue c. Fixed Cost Line 5 d. Profit Line 1 e. Variable Cost 4- 5-