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The long run equilibrium price is equal to ○ A. $4000. O B. $3000. ○ C. $5000. OD. None of the above. In the short run, Wolfgang will produce the price per piano is $3500, per piano is $4500, and piano is $5500. O A. 0; 1; 3 OB. 1; 2; 3 O C. 2; 3; 3 ○ D. 0; 2; 3 pianos if pianos if the price pianos if the price per Wolfgang is a typical producer in a perfectly competitive piano industry (i.e., all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long run as well as the short run. Fixed costs (rent) are unrecoverable in the short run and are equal to $2400 per month. Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per piano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per piano is less than OA. $3000. B. $4000. O C. $5000. ○ D. None of the above. Pianos (Q) Hours (L) Raw Materials ( 0 0 0 1 100 1000 2 150 2000 3 240 3000 4 400 4000

The long run equilibrium price is equal to ○ A. $4000. O B. $3000. ○ C. $5000. OD. None of the above. In the short run, Wolfgang will produce the price per piano is $3500, per piano is $4500, and piano is $5500. O A. 0; 1; 3 OB. 1; 2; 3 O C. 2; 3; 3 ○ D. 0; 2; 3 pianos if pianos if the price pianos if the price per Wolfgang is a typical producer in a perfectly competitive piano industry (i.e., all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long run as well as the short run. Fixed costs (rent) are unrecoverable in the short run and are equal to $2400 per month. Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per piano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per piano is less than OA. $3000. B. $4000. O C. $5000. ○ D. None of the above. Pianos (Q) Hours (L) Raw Materials ( 0 0 0 1 100 1000 2 150 2000 3 240 3000 4 400 4000

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.1IP
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The long run equilibrium price is equal to ○ A. $4000. O B. $3000. ○ C. $5000. OD. None of the above. In the short run, Wolfgang will produce the price per piano is $3500, per piano is $4500, and piano is $5500. O A. 0; 1; 3 OB. 1; 2; 3 O C. 2; 3; 3 ○ D. 0; 2; 3 pianos if pianos if the price pianos if the price per
Transcribed Image Text:The long run equilibrium price is equal to ○ A. $4000. O B. $3000. ○ C. $5000. OD. None of the above. In the short run, Wolfgang will produce the price per piano is $3500, per piano is $4500, and piano is $5500. O A. 0; 1; 3 OB. 1; 2; 3 O C. 2; 3; 3 ○ D. 0; 2; 3 pianos if pianos if the price pianos if the price per
Wolfgang is a typical producer in a perfectly competitive piano industry (i.e., all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long run as well as the short run. Fixed costs (rent) are unrecoverable in the short run and are equal to $2400 per month. Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per piano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per piano is less than OA. $3000. B. $4000. O C. $5000. ○ D. None of the above. Pianos (Q) Hours (L) Raw Materials ( 0 0 0 1 100 1000 2 150 2000 3 240 3000 4 400 4000
Transcribed Image Text:Wolfgang is a typical producer in a perfectly competitive piano industry (i.e., all other producers of pianos face the same costs as Wolfgang). The following production and cost data apply to the long run as well as the short run. Fixed costs (rent) are unrecoverable in the short run and are equal to $2400 per month. Variable costs consist of raw materials (wire, wood, plastic), which cost $1000 per piano, and the $40 per hour opportunity cost of Wolfgang's time. Wolfgang's production function is given in the table at right. Wolfgang will shut down if the price per piano is less than OA. $3000. B. $4000. O C. $5000. ○ D. None of the above. Pianos (Q) Hours (L) Raw Materials ( 0 0 0 1 100 1000 2 150 2000 3 240 3000 4 400 4000
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