Which of the following statements is not correct? Only for competitive firms does average revenue equal the price of the good. For perfectly competitive firms, average total cost equals marginal cost at the long-run equilibrium. Average revenue equals total revenue divided by the quantity produced. For perfectly competitive firms, marginal revenue equals average revenue.

Which of the following statements is not correct? Only for competitive firms does average revenue equal the price of the good. For perfectly competitive firms, average total cost equals marginal cost at the long-run equilibrium. Average revenue equals total revenue divided by the quantity produced. For perfectly competitive firms, marginal revenue equals average revenue.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...

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Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
Graph represents the cost structure of an individual firm in a perfectly competitive market. If the price decreases to $25, Considering the short-run: would firm earn positive or negative profit in this new scenario? Would it continue operating or stop production? Considering the long-run: would new firms enter to the market or would existing firms exit from it? What would happen to the market equilibrium?
only typed answer Assume a competitive firm faces a market price of $120, a cost curve of: C = 13q3 + 20q + 500, and a marginal cost of: MC = q2 +20. What is the firm's profit maximizing output level? ?? Units (round your answer to two decimal places) What is the firm's profit maximizing price? ??? (round to the nearest penny) What is the firm's profit? ??? (round to the nearest npenny) In the short-run, this firm should ?? produce or shut down??
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QUESTION 23 If a perfectly competitive firm incurs an economic loss, it should: O Shut down if this loss exceeds fixed cost. O Shut down in long run. O Shut down immediately. O Try to raise its price. QUESTION 24 Suppose a firm is producing a level of output such that MR > MC. What should the firm do to maximize its profits? O The firm should increase price O The firm should do nothing if it wants to maximize the difference between MR and MC to maximize its profits. O The firm should increase output O The firm should hire less labor Click Save and Submit to save and submit. Click Save All Answers to save all answers. DELL F1 F2 F3 F4 E5 F6 F7 F8 F9 F10 %23 %
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Question list Question 8 O Question 9 O Question 10 K Sophia grows Christmas trees. Her cost of production is shown in the table below. Christmas Trees Total Cost $40 $60 $108 II $164 $228 6 $300 7 $380 Suppose the market for Christmas trees is perfectly competitive and that the market price for Christmas trees is $60 per tree. How many Christmas trees should Sophia grow? Sophia should grow trees. (Enter your response as an integer value.)
20.Suppose a demand for good produced by a certain industry changes then answer the following questions:1- What will be the affect of change in demand on the output of the firm and industry in short run?2- What will be the affect of change in demand on the output of the firm and industry in long run?3-For what reason the affect of change in demand on firm's and industry's output differ in short and long run?4- Will the condition of zero economic profit be met in long run? how?
7. Short-run supply and long-run equilibrium Consider the competitive market for steel. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. 100 90 80 COSTS (Dollars per ton) 888 50 60 70 70 40 ATC 30 20 80 10 MC AVC D 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of tons)
Price (dollars) 8 7 6 5 4 3 2 1 0 80 O increase; increase; increase O remain same; remain same; decrease O decrease; remain same; decrease O decrease; decrease; decrease Short-run Short-run MC AC 100 110 The graph above shows the cost curves for a firm selling in a perfectly competitive market. If the market demand falls due to a recession, the long run equilibrium price will output will ., the firm's and industry output will Output (per day) Long-run AC
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A perfectly competitive firm can produce its current level of output at an average total cost of $10 and a marginal cost of $8. If the market price of the product is currently $8, what should the firm do? a. The answer depends upon the relationship between price and average variable cost. The firm should shut down if average variable cost is $8 or greater, but the firm should continue to produce the current level of output if average variable cost is less than $8. O b. The firm should definitely shut down since average total cost exceeds price. Oc. The firm should continue to produce, but they should decrease production in order to increase profit. O d. The firm should increase production in order to increase profit. 0= Icon Key mentMain.do?takeAssignmentSessionLocator=assignment-take,53ef7eec-ce82-423c-a5cf-a72630d672e7#