The marginal revenue product of a factor shows how much an additional unit of a factor adds to dollar revenue. unit costs. O profitability. O the level of production.
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- A profit-maximizing firm in a competitive market is able to sell its product for $9. At its current level of output, the firm's average total cost is $6. The firm's marginal cost curve crosses its marginal revenue curve at an output level of 10 units. The firm experiences a O profit of exactly $30. loss of exactly $30. loss of more than $30. profit of more than $30. Consider the labor market for short-order cooks. A labor-augmenting technological change such as a faster food processor will cause the labor demand curve to increase. the marginal product of labor to decrease. the value of the marginal product of labor to decrease. O equilibrium wages to decrease. If advertising reduces a consumer's price sensitivity between identical goods, it is likely to encourage the consumption of all homogeneous goods. enhance competition and encourage more product diversity. increase the elasticity of demand for differentiated products. reduce competition and reduce social welfare.Jeremy worked at a bank with a monthly salary of $1,500. He decided to quit his job and open a bookstore inhis neighborhood. He now pays $500 in rent, $80 in utilities and $120 in wages every month. He also paysthe publisher $5 per book sold. This month Jeremy sold 100 books at the price of $30 per book.a. What was the total revenue this month? Calculate this month’s explicit fixed cost, the variable costand the total cost.b. How much accounting profit did Jeremy make?c. How much economic profit did Jeremy make?d. If Jeremy had not quit his job at the bank, he could have been promoted and got a pay raise of 30percent. How would this affect his accounting profit and his economic profit?A firm in a perfectly competitive market has an average total cost of $40 for the 100th good it sells. Its fixed costs are $100. The average total cost of the 101th good is $41. If the market price is $50 this firm should O sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue. O sell 101 because price is greater than average total costs. O sell 101 goods because it adds to profits. O sell 101 goods because its fixed costs are so low. 55. つ25 MacBook Air 000 esc F1 F2 F3 F4 F5 F7 23 $ & 1 3 7 Q W E R Y tab A S F G caps lock C V B shift alt
- 2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Bloomington, IN, during Indiana's fall move-in week. PRICE (Dollars per small truck) 100 90 Supply X 2 3 6 7 8 QUANTITY (Hundreds of small trucks) 80 70 60 50 40 30 20 10 0 Demand 0 1 4 5 9 10 ? Suppose that YouYeet is one of over a dozen competitive firms in the Bloomington area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price You Yeet must take as given is $The following table shows output per hour produced by the different units of labor. Table 14.1 Number of Workers o 3 15 oligopolistic. perfectly competitive. Output per Hour monopsonistic. 10 monopolistic. 12 15 17 18 Price of the Product $3 monopolistically competitive. $3 $3 The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue. $3 The structure of the product market as described by Table 14.1 is: $3 $313. Firms in Competitive Markets The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than average total cost. Price and Costs The price of fertilizer must be less than marginal cost. The price of fertilizer must be equal to average variable cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. MC Firm ATC LAVC II II Quantity (? P P₂ Demand 1 Market Quantity S₁ S₂ (?)
- 2. The demand curve facing a competitive firm The following graph shows the daily market for small cardboard boxes in Houston. 10 Demand Supply 7 1 2 3 4 5 6 7 10 QUANTITY (Millions of small boxes) Suppose that Vesoro is one of more than a hundred competitive firms in Houston that produce such cardboard boxes. Based on the preceding graph showing the daily market demand and supply curves, the price Vesoro must take as given is S PRICE (Dollars per small box) 2.A perfectly competitive firm faces a supply chain issue. O demand curve that is inelastic. vertical line drawn at the market price level. O perfectly elastic demand curve for its product.Exhibit 15.1 $4.00- Dollars per trip 2.50 1.50 1.25- 0.50- 0 a A B b 100 Demand h Marginal revenue 200 9 Long-run average cost Le Long-run marginal cost 210 Trips per month (millions)
- help me pleaseRefer to Figure 12-10. If the price is less than $6, the firm should short run and in the long run. OA. shut down; exit the market OB. continue operating, stay in the market and expand OC. continue operating; exit the market OD. exit the market; exit the market in the Revenue and cost (dollars per unit) $20 11 10 6 0 J 200 250 300 ATC AVC MR QuantityHere’s the table showing costs, and quantity. Find the total revenue at $8. Quantity Total Cost 0 $ 8 1 9 2 10 3 11 4 13 5 19 6 27 7 37