Suppose Adam's Apples, a small firm supplying apples in a perfectly competitive market, decides to cut its production in half this year. As a result, the 1. market price will rise market price will fall market quantity will rise the firm's revenues will be cut in half а. b. с. d. A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000. The prevailing market price is $15. What will happen to the number of firms in the industry and to the industry's output in the long run? The number of firms remains constant and the industry's output increases. The number of firms increases and the industry's output increases. The number of firms remains constant and the industry's output decreases. The number of firms decreases and the industry’s output decreases. 2. а. b. с. d. It would make no sense for an individual seller in perfect competition to sell at a price lower than the market price because 3. the seller can sell any quantity she wants at the prevailing market price quantity demanded of the product would exceed the quantity supplied the sellers would start a price war. demand is perfectly inelastic. а. b. с. d.

Suppose Adam's Apples, a small firm supplying apples in a perfectly competitive market, decides to cut its production in half this year. As a result, the 1. market price will rise market price will fall market quantity will rise the firm's revenues will be cut in half а. b. с. d. A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000. The prevailing market price is $15. What will happen to the number of firms in the industry and to the industry's output in the long run? The number of firms remains constant and the industry's output increases. The number of firms increases and the industry's output increases. The number of firms remains constant and the industry's output decreases. The number of firms decreases and the industry’s output decreases. 2. а. b. с. d. It would make no sense for an individual seller in perfect competition to sell at a price lower than the market price because 3. the seller can sell any quantity she wants at the prevailing market price quantity demanded of the product would exceed the quantity supplied the sellers would start a price war. demand is perfectly inelastic. а. b. с. d.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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