Suppose that a firm in a competitive market has the following cost curves:PRICE20181641312 1012864N+MC2c. less than $13 but more than $6.d. less than $6.3QUANTITYATCAVC5Refer to Figure 14-1. The firm will earn a negative economic profit butremain in business in the short run if the market price isa. above $13 but less than $18.b. above $13.

The firm in competitive market will produce at a negative profit in the short run market instead to…

Suppose that a firm in a competitive market has the following cost curves. PRICE 20 18 16 14 13 12 10 8 6 4 2 MC 2 3 QUANTITY ATC AVC 5 Refer to Figure 14-1. The firm will earn a negative economic profit but emain in business in the short run if the market price is a. above $13 but less than $18. b. above $13. c. less than $13 but more than $6. d. less than $6.

Suppose that a firm in a competitive market has the following cost curves. PRICE 20 18 16 14 13 12 10 8 6 4 2 MC 2 3 QUANTITY ATC AVC 5 Refer to Figure 14-1. The firm will earn a negative economic profit but emain in business in the short run if the market price is a. above $13 but less than $18. b. above $13. c. less than $13 but more than $6. d. less than $6.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 4 13 12 10 14 8 6 4 2 MC 1 2 3 QUANTITY ATC AVC 5 Refer to Figure 14-1. If the market price is $5, the firm will earn a. negative economic profits in the short run but remain in business. b. negative economic profits and shut down. c. zero economic profits in the short run. O d. positive economic profits in the short run.
Use Figure 7, which depicts the cost curves of a perfectly competitive firm, to answer questions 34 and 35. Price (dollars per unit) 22621 23 11 Figure 7 14 17 19 MC ATC AVC Quantity (units) 35. The shutdown point occurs at a price of A. $11.00. B. $12.00. C. $16.00. D. $22.00. MR 34. At the profit-maximising level of output, the firm is A. Incurring an economic loss equal to $119.00. B. Incurring an economic loss equal to $123.50. C. Incurring an economic loss equal to $187.00. D. Making zero economic profit.
29. In the long run, a profit maximizing firm will choose to exit a market when a. fixei costs exceed total costs O totai revenue from production is less than total costs c average fixed cost is rising d. marginal cost exceeds marginal revenue at the current level of production
Figure 14-2 Suppose a firm operating in a competitive market has the following cost curves: 20 MC 18 16 14 12 ATC 10 8 7 4 1 3 4 5 6 7 8 9 10 QUANTITY Refer to Figure 14-2. If the market price is $10, what is the firm's total revenue? a. $35 b. $30 C. $15 d. $50 PRICE
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Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 14 432 10 8 6 4 2 MC 2 3 QUANTITY ATC AVC 5 Refer to Figure 14-1. If the market price is $5, the firm will earn a. negative economic profits in the short run but remain in business. O b. negative economic profits and shut down. c. zero economic profits in the short run. O d. positive economic profits in the short run.
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