ECONOMICS W/CONNECT+20 >C<
20th Edition
ISBN: 9781259714993
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 10, Problem 6RQ
Subpart (a):
To determine
Relevance of perfect competition .
Subpart (b):
To determine
Relevance of perfect competition.
Subpart (c):
To determine
Relevance of perfect competition.
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In a perfectly competitive market, each firm has a long-run total cost given by LTC = 100Q - 10Q² +
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Stuff, Incorporated is a firm with a total revenue of $1,000, marginal cost of $5, and average variable cost of $4. Both the output and input markets are
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O Output 200; Fixed Cost $400
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O Output 250; Fixed Cost $400
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- 2 .arrow_forward6. Short-run supply and long-run equilibrium Consider the perfectly 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. (?) 80 72 64 56 ATC 48 40 32 24 18 AVC 8 MC O 12 15 18 21 24 27 30 QUANTITY (Thousands of tons) COSTS (Dollars per ton) 3.arrow_forwardSuppose that the pen-making industry is perfectly competitive. Also suppose that each current firm and any potential firms that might enter the industry all have identical cost curves, with minimum ATC = $1.25 per pen. If the market equilibrium price of pens is currently $1.50, what would you expect it to be in the long run? LO11.2 a. $0.25. b. $1.00. c. $1.25. d. $1.50.arrow_forward
- Suppose that the paper clip industry is perfectly competitive. Also assume that the market price for paper clips is 2 cents per paper clip. The demand curve faced by each firm in the industry is: LO10.3 a. A horizontal line at 2 cents per paper clip. b. A vertical line at 2 cents per paper clip. c. The same as the market demand curve for paper clips. d. Always higher than the firm’s MC curve.arrow_forwardAnswer plzz...arrow_forwardIf the price of the good is $100, what is the firm's profit in the short-run equilibrium?arrow_forward
- Consider the perfectly competitive market for titanium. 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. 18, 80 80 72 64 56 ATC 48 40 32 24 16 AVC 8 + MC O 3 12 15 18 21 24 27 30 QUANTITY OF OUTPUT (Thousands of pounds) COSTS (Dollars per pound)arrow_forwardRevenue and cost (dollars per unit) 50 40 30 20 20 10 O 10 20 30 MC ATC 40 50 e figure above shows a perfectly competitive firm. If the market price is $20 per unit, then the firm produces A. 30, more than $100 B. 30; zero because the firm earns a normal profit C. 20; less than $400 DD. more than 30; more than $100 DE. 0; zero because the firm earns a normal profit Output (units per day) units and has an economic profit that is,arrow_forward........ # m SI 4. 2. He %3D Consider the following costs for a typical perfectly competitive firm with no fixed costs (average total cost = average variable cost). Average Total Cost Quantity Marginal Cost $24 1. 16.5 6$ 12.67 3. 7. 15 11.25 12 5. 14.83 9. a. Which of the following prices would be associated with a long-run equilibrium? O $11.25 O $15 O $12 Next> < Prev 9 jo 9 72°F Partly sunny 近 ere to search ofile Ball10 F7 F3 & %23 24 4. 2. R. K H B.arrow_forward
- Please help solve and explain all parts of equationarrow_forwardConsider the perfectly competitive market for titanium. 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 70 60 50 40 АТС 30 20 AVC 10 MC O 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pounds) COSTS (Dollars per pound)arrow_forward1arrow_forward
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