B.Com.: SEM43per month a40 each.B.3 39 andEquilibrium of a Firm and Industry in Perfect CompetitionSelect the corect answer from the alternatives given and rewritethe answer:To maximA firm's equilibrium output is produced at a point(a) MC = MR(c) MC< MRIn the long-run all cost are(a) fixed(c) avoidable3.(b) MC> MRa downwa2al firm face(b) variableIn perfect competition, the actions of an individual buyer or seller will(a) Have no impact on the market price(b) Have some impact on production(c) Have a significant impact on market supply(d) Have a significant impact on market demand4.dities in IndIf a firm in a perfectly competitive market doubles the number ofunits of output sold, then total revenue will(a) More than triple(c) Exactly double5.(b) Halve(d) Remain constantprofit, normSellers will have little reason to charge less than the going marketprice because(a) There will be few buyers in the market(b) There will be few sellers in the markety.nd TVC forcosts.(c) Buyers will have greater advantage(d) Goods sold are homogenous6.earn differeA firm in perfect competition, might decide to set its price below themarket price, because(a) This would result in higher total revenue(b) This would result in higher profits(c) This would result in lower marginal cost(d) None of the above is correct7.tial Cost8x100Suppose a firm in a competitive market produces and sells 100 unitsof output and has a marginal revenue of 8.00, What would be thefirm's total revenue if it instead produces and sold 200 units of output?(a) 1600.00(Yマ800.00If a firm in perfect competition earns 1000 in total revenue and hasmarginal revenue of 10. What is the average revenue per unit, andhow many units were sold ?(a) マ5 and 50(c) 10 and 50(b) マ1000.00(d) 2000.00nder perfe(b) 5 and 100(d) 10 and 100

Note: As per our guidelines, we are supposed to answer only 3 sub-parts. If you want answers for…

Select the correct answer from the alternatives given and rewrite B. the answer: 1. A firm's equilibrium output is produced at a point MC MR (a) (c) MC < MR In the long-run all cost are (b) МС> MR 2. (a) fixed (c) avoidable 3. In perfect competition, the actions of an individual buyer or seller will (a) Have no impact on the market price (b) Have some impact on production (c) Have a significant impact on market supply (d) Have a significant impact on market demand (b) variable

Select the correct answer from the alternatives given and rewrite B. the answer: 1. A firm's equilibrium output is produced at a point MC MR (a) (c) MC < MR In the long-run all cost are (b) МС> MR 2. (a) fixed (c) avoidable 3. In perfect competition, the actions of an individual buyer or seller will (a) Have no impact on the market price (b) Have some impact on production (c) Have a significant impact on market supply (d) Have a significant impact on market demand (b) variable

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

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.
Problem #1: Assume that the following marginal costs exist in catfish production: 17 Quantity Produced (units per day) Marginal Cost (per unit) 10 11 12 13 14 15 16 $4 6 8 10 12 14 16 18 (a) Graph the MC curve. (b) Use the data on market demand below and graph the demand and MR curves on the same graph. Quantity demanded (units per day) 10 Price (per unit) 11 12 13 14 15 16 17 $25 24 23 22 21 20 19 18 (c) At what rate of output is MR = MC?
a. Perfectly competitive firms are profit maximiser. Use graph(s) and marginal analysis to explain how these firms determine their profit maximising output level. b. We all behave strategically when making decisions. Construct a game theory matrix and explain a strategic decision you made recently
Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $240 $90 $60 $180
Price or Cost(dollars per unit) Pc MR Later C2 MR B MC Demand QE QC QB QA Later ATC Demand Quantity (units per period) 3. Refer to the graph above. Identify each of the following market outcomes: a. Short-run equilibrium output in perfect competition. b. Long-run equilibrium output in perfect competition. c. Long-run equilibrium price in perfect competition. d. Long-run equilibrium output in monopoly. e. Long-run equilibrium output in monopolistic competition.
Problem 08-02 (algo) A firm sells its product in a perfectly competitive market where other firms charge a price of $100 per unit. The firm estimates its total costs as C(Q) = 60 + 12Q+ 2Qt. a. How much output should the firm produce in the short run? units b. What price should the firm charge in the short run? c. What are the firm's short-run profits? d. What adjustments should be anticipated in the long run? Entry will occur until economic profits shrink to zero. No firms will enter or exit at these profits. O Exit will occur since these economic profits are too low.
A slight increase in the marginal cost of a firm definitely leads to a reduction in its output if the firm competes in the: A. Sweezy fashion. B. Cournot fashion. C. Bertrand fashion. D. Cournot fashion and Bertrand fashion. Please explain your answer!
MC P4 ATC P3 AVC P2- P1- AFC Output This graph shows the costs of a typical firm in a market that is in a long run equilibrium with free entry. What is the long run equilibrium price?
ume the pizza market is a perfectly competitive constant cost industry, and all firms have identical homogenous firms). The market demand and market supply functions for this perfectly competit stry are given below. L 0 1 2 3 4 5 6 7 8 9 q=TP 0 10 20 30 40 50 60 70 80 90 TC 100 205 2.45 280 340 430 545 720 930 1190 P = 30.5-.005Q P = 1.7+.003Q TFC TVC 100 0 100 105 20.50 10.50 100 145 12.25 7.25 100 180 9.33 6.00 100 240 8.50 6.00 100 330 8.60 6.60 100 445 9.08 7.42 100 620 10.29 8.86 100 830 11.63 10.38 100 1090 13.22 12.11 ATC AVC MC 10.50 4.60 3.50 6.00 9.00 11.5 17.50 21.00 26.00
The following statements are true in a perfect market except which one? A. Resources are allocated efficiently because of competition B. Price is equal to marginal costs C. Normal profit made in the long run D. Firms do not operate at maximum efficiency
Can you please assist? 1. What conditions should exist for price discrimination. 2. What is the difference between production in the short run and production in the long run? Explain the shape of the long-run cost curve in relation to shortrun cost curves?
Identify the strategy with respect to product/market grid and explain. a. Knoor noodles now available in Rs. 20 pack. (Smaller than normal size) b. Baskin Robins (an international ice cream chain) offered new flavor. c. Mothercare baby product firm started California pizza business.