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.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 7SQ

See similar textbooks

Similar questions

Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
and cost 20 15 14 11 MC ATC 750 1.100 1.350 1,800 AVC MR Quantity Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens in the diagram above? None of the curves shifts; only the fixed cost curve, which is not shown here, is affected. All the cost curves shift upward. Only the average variable cost and average total cost curves shift upward: marginal cost is not affected. Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected.
Suppose a firm operating in a competitive market has the following cost curves: MC ATC AVC # Q3 04 PS P3 Figure 14-6 Price 01 02 Refer to Figure 14-6. Firms will be earn losses in the short run but will remain in business if the market price a. exceeds P3. b. is less than P1. e is greater than P1 but less than P3. d. exceeds P2.
When is an industry productively efficient? R OOD F4 A. When firms in that industry produce the amount of output that intersects with the minimum of their ATC curves ubmission B. When the short-run equilibrium market price is above the long-run equilibrium market price ← PREVIOUS or dº APR 20 % 5 C. When the market price for the good or service in that industry is the same as marginal revenue D. When the average total cost curve intersects the marginal revenue curve at its lowest point T F5 6 MacBook Air F6 Y & 7 F7 U stv * CO 8 A DII F8 - ( 9 DD F9 O 0 VIEW F10 P
Question 14 Questions 14-18 refer to Figure 5-1 below. Suppose a firm operating in a perfectly competitive market has the following cost curves: Figure 5-1 MC ATC P4 P3 P2 2 P1 Price AVC Q102 03 04 Q5 Quantity Refer to Figure 5-1. When price rises from P2 to P3, the firm finds that... marginal cost exceeds marginal revenue at a production level of Q2. if it produces at output level Q3 it will earn a positive profit. O expanding output to Q4 would leave the firm with losses. it could increase profits by lowering output from Q3 to Q2.
Price per Tonne of Wheat MC 18.00 ATC 17.00 15.75 16.00 15.25 1550 15.00 14.00 13.00 12.00 11.00 500 1000 ++ 1500 Tonnes of Wheat per Month Figure 9-5 shows the cost curves of a firm in a perfectly competitive market. If the market price is $17 and the firm is maximizing profit, how much is its total cost? OA. $20 400 OB. $17 000 OC. $18 300 OD. $15 000
Suppose a firm in a competitive industry has the following cost curves: 10 9 8 7 6 5 4 3 2 1 Price + 1 + + + 2 3 4 5 MC ATC AVC P1 P2 P3 P4 + 6 7 8 Quantity Refer to Figure 14-13. If the price is P1 in the short run, what will happen in the long run? Nothing. The price is consistent with zero economic profits, so there is no incentive for firms to enter or exit the industry. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. Because the price is below the firm's average variable costs, the firms will shut down.
The graph shown displays the cost curves for a firm in a perfectly competitive market. If the market price is $12, which of the following statements is true? S 17 16 15 14 13 12 11 10 098765432. 1 るる 70 70 80 80 40 120 130 MC 140 150 160 170 AVC 1. The firm will earn negative profits if it produces 140 units. 2. The profit-maximizing quantity is 120. 3. The firm should consider how to minimize its losses. 180 190 ATC 200 : ... Quantity
Bookmarks Profiles Tab Window Help Table 12-1 Quantity 0 100 200 300 400 500 600 #3 Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760 E 51) Refer to Table 12-1. If the market price of each camera case is $8, what is the firm's total revenue when the profit-maximizing quantity is found at the output where MR = MC? B) $3,200 C) $4,000 D) $4,800 A) $2,400 Page Ref: 401-402 D ture.com/courses/2244593/files/144593507?module_item_id=37898795 $ 4 4,000 5,800 R FI Variable Cost (dollars) $0 360 560 960 1,760 3,000 4,800 % 5 T MacBook Pro G ^ 6 Y 87 & H U * 8 J - ( 9 O 49) V 51) ) 0 K L P
Figure 14-1 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 b. less than $13 but more than $6. c. less than $6. d. above $13. 4 ATC AVC 5 Refer to Figure 14-1. The firm will earn a negative economic profit but remain in business in the short run if the market price is a. above $13 but less than $18.
Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost schedule in the table below. Apex’s product sells for $200 per unit. Quantity (units) 0 1 2 3 4 5 6 7 8 9 10Total Variable Cost (TVC) 0 100 180 220 300 390 500 640 800 1000 1250Answer the following questions:1. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?2. If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?3. Comment on your answers to parts (1) and (2).
Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: 13+ 12 11+ 10 M PO ↑ Price 9- 8 7 16 4.5 5 4 3 2 1 2 3 4 5 MC 6 7 8 ATC AVC 9 10 1 Quantity Refer to Figure 14-1. If the market price is $4.00, the firm will earn a. negative economic profits in the short run but remain in business. b. zero economic profits in the short run. c. positive economic profits in the short run. d. negative economic profits and shut down.