3. True or False? a. A firm will make a profit when the price it charges exceeds the average variable cost of the chosen output level. b. To maximize profits in the short-run, a firm must minimize costs c. If economic profit is positive, firms will enter the market in the short run
Q: 1. Which of the following, in perfect competition, is most likely to shift a market’s supply curve…
A: Supply curve would shift to right If there is an improvement in production technology.
Q: 4. Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 500 +…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: 1. Price searchers can set the price of their product. Does this mean that price searchers will…
A: The detailed explanation for both parts is as follows:-
Q: 1. Explain how the long run differs from the short run in pure competition. 2. The basic model of…
A: 1. In the short run, when plants and gear are fixed, the organizations in an absolutely competitive…
Q: 3. True or False? d. A firm that receives a price larger than its average variable costs but less…
A: In the short run, a firm may operate with excess profit, normal profit, and even incurring loss. But…
Q: 6.a) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: 4. Assume that a firm acts as a price taker. Regardless of the demand, it sells each unit of its…
A: A firm in a perfectly competitive market is considered as a price taker. Because the firms in a…
Q: 14 If a perfectly competitive firm wants to make any sales, what is the basis for pricing its goods?…
A: 14. If a perfectly competitive firm wants to make any sales,the basis for pricing its goods would be…
Q: 6. The following figure shows long-run average and marginal cost curves for a competitive firm. The…
A: "The figure given in the question relates to the firm in a perfectly competitive market structure.…
Q: 3. Assume that the potato chip industry in the Northwest in 2009 was competitively structured and in…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: (Short-Run Profit Maximization) A perfectly competitive firm has the following fixed and variable…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: )The graph below shows the marginal revenue, marginal cost, and average total cost at different…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1. Based on the above information, what is the type of the market? Why? 2. Based on the above table,…
A: Below is the filled table:
Q: 1-What are conditions of firm equilibrium? 2-what are the possibilities of perfect competition in…
A: Producer equilibrium refers to that level of output where a firm maximises its profits with its…
Q: 7. Which of the following is a benefit to a business of reducing its production times? O A. It will…
A: The production cycle measures a company's capacity to convert assets/resources into earnings,…
Q: 3. When a perfectly competitive firm takes losses, it follows that price is a. necessarily below…
A: In simple words we can say that a firm is generally a price taker which is considering accepting the…
Q: . Which statement must be false? a) A firm with constant returns to scale in production will not…
A: When Average cost remains constant - there are constant returns to scale When A.C rises - there are…
Q: 12. If a competitive firm is currently producing a level of output at which profit is not maximized,…
A: 12. If a competitive firm is currently producing a level of output at which profit is not maximized,…
Q: 5. A firm produces a product in a competitive industry and has a total cost of function…
A: A competitive industry is an industry in which there are many firms that sell easily substitutable…
Q: 6) Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: 9.If a firm is maximizing its profit and is earning positive economic profit, which of the following…
A: A profit maximizing firm produces at MR = MC. So, profit maximizing condition of firm is MR = MC.…
Q: 6.) The figure below shows Average Cost, Demand, Marginal Cost and Marginal Revenue curves for a…
A: Here, the given graph represents demand curve, marginal revenue curve, marginal cost curve and…
Q: Why, in perfect competition, is the marginal revenue curve perfectly elastic? b. Why is the…
A: Perfect competition is a market structure characterized by large number of firms selling homogenous…
Q: В.1. a) A profit-maximising firm faces a downward-sloping demand curve for its output and has…
A: To make the most money, a corporation must function in a condition where marginal income and…
Q: 1. Why does the article state that price is not fully within the control of the coffee roasters? 2.…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: 11. In the long run, ---------- --will---- -he industry so that the market supply curve shifts to…
A: A competitive market is a market structure in which there is a large number of buyers and sellers.…
Q: *4* Charley Company is a competitive price-taker firm that is currently producing 100 units of…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: 6.a) Figure 8.7 shows cost curves for Penny's Parasols, a perfectly competitive firm. At which of…
A: As we answer only 3 subparts, and the question has more than 3 subparts, we would be answering the…
Q: 6. The market for fertilizer is perfectly competitive. Firms in the market are producing output but…
A: Quantity delivered refers to the number of things or services that a supplier will make and sell at…
Q: We are in a position where a profit-maximizing firm facing a downward-sloping demand curve has a P =…
A: Total revenue (TR): - it is the total amount that a seller receives selling his goods and services…
Q: (a) Why the competitive firm faces a relatively horizontal demand curve. (b) The profit…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 2) Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or…
A: Long run: - it is the time period in which all factors of production become variable in other words…
Q: M/c question - Micro 23) When a firm in a competitive market receives $5000 in total revenue, it…
A: "Since you have asked multiple questions, we will solve first question for you .If you want specific…
Q: 5. Suppose the market is perfectly competitive. The market equilibrium market price P = $20. A…
A:
Q: Rebecca owns Louisiana Sugar Company, a manufacturer of sugar. Since there are lots of domestic…
A: Brand differentiation is the aspect through which firms try to attract customers so that the demand…
Q: 1. A company produces at an output level where marginal cost is equal to marginal revenue and has…
A: Total revenue is the product of price and quantity. Total cost is the sum of total variable cost and…
Q: 1-Which price leads to the maximum profits? A) $40,000 B) $26,000 C) $30,000 D) $39,000 2- What are…
A: The total revenue is the total receipts collected from selling the goods in the market.…
Q: a. What are the profit-maximizing price and quantity? b. At the profit-maximizing price and…
A: The profit maximizing output occurs at level where MR = MC. In this case MR = MC at 200 units. So,…
Q: 3. Assume a firm is facing the market demand curve: q function is: c(q) = 2q². a. What is the firm's…
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…
Q: 4. Suppose we have another firm known as Sepanyan Corporation which makes a product known as…
A: Hi there! Thank you for submitting the question. Since we only answer up to first question, we will…
Q: 1. In the short run, the market price is $8. What is the profit maximizing output for this firm? 2.…
A: Note : Since the question contains multiple sub parts, only the first three sub parts shall be…
Q: 1- Explain how economic profits and losses influence the number of firms in a purely competitive…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Let's suppose that a perfectly competitive firm has the following revenue and cost data. How many…
A: As per the guidelines, we only answer one question at a time. So, I am answering the first one.…
Q: 3. A perfectly competitive industry has a large number of potential entrants. Each firm has an…
A: In perfect competition, the long-run equilibrium exists when:Long-run average cost = Long-run…
Q: 3. Consider the perfectly competitive markets for bottled water in two cities, A and B. Both have a…
A: Perfect competition is a type of market structure where the number of sellers and buyers are working…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Explain in words why a profit-maximizing film will not choose to produce at a quantity where marginal cost exceeds marginal revenue.1. Assume the market for coffee mugs is perfectly competitive. Firms in themarket are producing output, but are currently making economic losses. a. How does the price of coffee mugs compare to the average total cost, the averagevariable cost, and the marginal cost of producing coffee mugs?b. Draw two graphs, side by side, illustrating the present situation for the typical firm andin the market.c. Assuming there is no change in either market demand or the firms’ cost curves,explain what will happen in the long run to the price of coffee mugs, marginal cost,average total cost, the quantity supplied by each firm, and the total quantity supplied tothe market.Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
- 17. A market is in long-run equilibrium and firms in this market have identical cost structures. Suppose demand in this market decreases. a. Describe what happens to the profit-maximizing output quantity for individual firms as the market leaves and then returns to long-run equilibrium. b. Describe what happens to the market quantity as the market leaves and then returns to long-run equilibrium.The market for fertilizer is perfectly competitive.Firms in the market are producing output but arecurrently incurring economic losses.a. How does the price of fertilizer compare to theaverage total cost, the average variable cost, andthe marginal cost of producing fertilizer?b. Draw two graphs, side by side, illustrating thepresent situation for the typical firm and for themarket.c. Assuming there is no change in either demand orthe firms’ cost curves, explain what will happenin the long run to the price of fertilizer, marginalcost, average total cost, the quantity supplied byeach firm, and the total quantity supplied to themarket.. A firm should continue to increase an activity so long as the total revenue from the activity exceeds the total cost of the activity. a. True O b. False
- 16. The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barri- ers to entry. a. What level of output will maximize the firm's profit level? b. What price will the firm charge? c. How much revenue will the firm receive in this situation? How much is total cost? Total profit? d. How will the situation change over time?In long-run competitive equilibrium, a firm that owns factors of production will have an A. economic profit > $0 and accounting profit = $0. B. economic profit = $0 and accounting profit > $0. C. economic and accounting profit can take any value. D. economic and accounting profit > $0. E. economic and accounting profit = $0.I need help with econ multiple hw questions asap! 60) When a firm in a competitive market produces 15 units of output, it has a marginal revenue of $8.00. What would be the firm’s total revenue when it produces 8 units of output? A. $64.00 B. $48.00 C. $6.00 D. $4.80 59) The competitive firm’s long-run supply curve is that portion of the marginal-cost curve that lies above which average cost? A. sunk cost B. total cost C. variable cost D. fixed cost
- An industry currently has 100 firms, each of whichhas fixed cost of $16 and average variable cost asfollows:Quantity Average Variable Cost1 $12 23 34 45 56 6a. Compute a firm’s marginal cost and average totalcost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How muchdoes each firm produce? What is the total quantitysupplied in the market?c. In the long run, firms can enter and exit themarket, and all entrants have the same costs asabove. As this market makes the transition to itslong-run equilibrium, will the price rise or fall?Will the quantity demanded rise or fall? Will thequantity supplied by each firm rise or fall? Explainyour answers.d. Graph the long-run supply curve for this market,with specific numbers on the axes as relevant.1. The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell in order to earn a profit of $10,000 per month. The price of each television set is $300, the average variable cost is $100, and the fixed costs are $5,000 per month. a. What is the required sales volume for Abner Corporation to earn a profit of $10,000 per month? b. If the corporation were to sell each television set at $350 rather than $300, what would be the required sales volume? c. If the price is $350 but the average variable cost decreased to $85 rather than $100, what would be the required sales volume now?1. Table: Consider the following information for a firm Q P A. MR TR 9.50 9.00 8.50 3 8.00 4 7.50 a. Calculate AR, MR and profit for each quantity? Which type of firm is it? How much should the firm produce to maximize profit b. A student has a monthly budget of $120 to spend on either beer, which cost $6 each, or sodas, which cost $4 each. i. Find out the largest number of beers and the largest number of sodas the student could afford to purchase in one month? ii. After buying 15 sodas, how many beers that the student could afford to purchase in one month? iii. Plot each of the bundles from parts A-C on a graph that measures Beers on the horizontal axis and sodas on the vertical; connect the dots. iv. Show what happens to the budget constraint if the price of sodas rises to = $5 per soda.