Question 31Refer to Figure 3 in Question 29.As the figure is drawn, the firm is inO a short-run equilibrium but it is not in a long-run equilibrium.a long-run equilibrium but it is not in a short-run equilibrium.a short-run equilibrium as well as a long-run equilibrium.O neither a short-run equilibrium nor a long-run equilibrium. Figure 3Use this figure for questions 29-32.Price140123.339036.67100133.33MR.MCATCDemandQuantity

The major difference between the short and the long-run market in a monopolistically competitive…

teter to Figure 3 in Question 29. As the figure is drawn, the firm is in O a short-run equilibrium but it is not in a long-run equilibrium. O a long-run equilibrium but it is not in a short-run equilibrium. O a short-run equilibrium as well as a long-run equilibrium. O neither a short-run equilibrium nor a long-run equilibrium.

teter to Figure 3 in Question 29. As the figure is drawn, the firm is in O a short-run equilibrium but it is not in a long-run equilibrium. O a long-run equilibrium but it is not in a short-run equilibrium. O a short-run equilibrium as well as a long-run equilibrium. O neither a short-run equilibrium nor a long-run equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3
The following graph shows the short-run average total cost curves for different plant sizes and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost (ATC) curve and the long-run average total cost (LRATC) curve; for example, Q1 marks the point of tangency between ATC1 and LRATC. The orange point on ATC3 indicates the firm's current output level in the short run (Q4). ATC, ATC5 LRATC ATC2 ATC, ATC. Q, Q2 OUTPUT In the long run, if the firm decides to keep output at its initial level, what will it likely do? COST PER UNIT
Because perfectly competitive firms are price takers, a permanent increase in the market demand does not change the price of the product in either the short run or long run. O A. True O B. False
In perfect competition, a firm maximizes profit in the short run by deciding Select one: O a. whether or not to enter a market O b. how much output to produce O c. what price to charge O d. how much capital to use
Question 18 Suppose a perfectly competitive firm faces the following situation: P = $10, output= 3,000, ATC= $8.50, MC $11, and AVC=$7.50. Which statement accurately describes the firm's situation? = O The firm incurs a loss and is minimizing its losses. O The firm carns a profit but should increase output to maximize its profits. O The firm is maximizing its profits. The firm earns a profit but should decrease output to maximize its profits.
QUESTION 22 What happens if a single firm in a perfectly competitive market raises its price above that charged by other firms? O a. It loses market share O b. Nothing happens because it has loyal customers O c. It goes out of business O d. It makes supernormal profit until other firms follow
Refer to Figure 14-1. If the market price is $13, the firm will earn O a. positive economic profits in the short run. Ⓒb. zero economic profits in the short run. O c. negative economic profits in the short run but remain in business. O d. negative economic profits and shut down. Icon Key Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 14 13 12 10 6 2 MC 1 2 3 QUANTITY 4 ATC AVC 5
A perfectly competitive firm that makes car batteries has total fixed costs of $10,000 per month. The market price at which it can sell its output is $100 per battery. The firm's minimum AVC Is $105 per battery. The firm is currently producing 500 batteries a month (the output level at which MR=MC). This firm is making a O loss, shut down O profit, shut down O profit: increase O loss; increase and should. production
QUESTION 6 2$ MC ATC AVC D = MR Consider the purely competitive firm whose data are shown in the accompanying graph. At its short-run equilibrium point, the firm is earning O zero normal profits. O zero accounting profits. zero economic profits. O We can say nothing about this firm's profit or loss situation.
A market is in long-run equilibrium and firms in this market have identical cost structures suppose demand in this market decreases. Which of the folowing are coreet descriptors of what happens to tho individual firms and the whole market as the market fist leaves and then returns to long-run equilibrium? Instructions: You may select more than one answer cick the box with a check mark for correct answers and dick to empty the box for the wrong answers. 0 Market proe will decrease in the longrun. O Market quantity will remain the same in the long-run. O Individual firms' profit maximizing output will decrease in the long run. O Firms will exit the market inthe long run. O Individual firms' profit maximizing output wil decrease in the shon-nun. O Market quantity decrease in the long run. o Firms win enter into the market in the long run. O Market price wil decrease in the short-run. References eBook & Resources Leaming objective: 13-08 Calculato the Section Responding…
Suppose that marginal revenue for a perfectly competitive firm is $20. When the firm produces 10 units, its marginal cost is $20, its average total cost is $22, and its average variable cost is $17. Then to maximize its profit in the short run, the firm A) should stay open and incur an economic loss of $20. B) must decrease its output to increase its profit. C) must increase its output to increase its profit. O D) should not change its production because it is already maximizing its profit and is making an economic profit. E) should shut down.