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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If there were 60 firms in this market, the short-run equilibrium price of titanium would be $________ per kilogram. At that price, firms in this industry would (earn a positive profit, shut down, earn zero profit, operate at a loss). Therefore, in the long run, firms would ( enter, exit, neither enter nor exit) the titanium market. Because you know that perfectly competitive firms earn (positive, zero, negative) economic profit in the long run, you know the long-run equilibrium price must be $_______ per kilogram. From the graph, you can see that this means there will be (20, 40, 60) firms operating in the titanium industry in long-run equilibrium.
Answer both parts a and b please. Part a) True or False: In a competetive market, a firm's short run supply curve is sloping upwards due to diminishing returns of the variable input. Explain why. Part b) Are long run supply curves always upward sloping? Explain why or why not with a graph.
In the US cotton market, each farm having the cost function c(q)=0.5q^(2)+ 10 q+162 where q is the quantity of cotton in tons produced by each farm. The market demand curve is given by Q^(d)=10,400-50 p. Suppose the government gives each farm a subsidy of $8 per ton. Calculate the long-run market price assume the market is perfect competition. $20 $25 $30 $35 With all steps clearly
Give an explanation to the answer and ensure all the steps are shown.
The canola farming industry is perfectly competitive. Assume that it is in long-run equilibrium at quantity Q0 and price P0. Assume also that it is a constant-cost industry. a) Draw a supply and demand diagram for the canola market showing this equilibrium b.) draw diagram for a typical canola growing farm in its initial long run equilibrium, showing its Marginal Cost, Average Total Cost, and Long Run Average Cost curves. Are there any profits being made by this firm?
Consider the perfectly competitive spice market. At the equilibrium price, the elasticity of market supply is 2.65 and the elasticity of demand is 0.40. Spice is a normal good. An increase in incomes cause the market PRICE of spices to rise by 3%. What is the percentage change in market QUANTITY? Notes: Enter a number only, do not include the % sign. If it decreases, include a negative sign before your number. For example, if it is a 15.675% decrease, enter -15.68 not -0.15. If quantity decreases include a negative sign.
Question: At a price of $16 per CD, a firm sells 70 cds. If the slope of the demand curve is -$0.10, marginal revenue for the 71st CD is $ Marginal revenue It is the change in revenue due to change in output. The marginal revenue curve is horizontal for a perfectly competitive firm. It is downward sloping and less than average revenue curve in imperfect competition.
Which of the following is true about a perfectly competitive firm in the long run and in the short run? The supply curve in the short run is usually steeper than the supply curve in the long run. The demand curve in the short run is usually steeper than the marginal cost curve in the long run. The supply curve in the short run is usually steeper than the average total cost curve in the long run. The supply curve in the short run is usually flatter than the supply curve in the long run.
Assume that the market determined price is $10 in a perfectly competitive industry. A firm is currently producing 100 units of output. Average total cost is $8 while marginal cost is $8 and average variable cost is $6. Is the firm producing the profit-maximizing level of output? Why or why not? If not, what should the firm do?
In the long-run equilibrium of a perfectly competitive market with identical firms, which of the following will be true? There will be no incentive for firms to enter or exit the market. Every firm will produce the quantity of output at which its average total costs are minimized. Every firm will earn 0 economic profit. All of the other choices will be true. Every firm's marginal cost will equal its marginal revenue.
A market is at the perfectly competitive long run equilibrium, with market price equal to 2. All firms have the cost function TC(q)=5q−6q2+3q3 over the relevant range of output q. Suppose the market demand is 100 units at this price. How many firms are there in the market?