Homework Help is Here – Start Your Trial Now!
Business
Economics
10. The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. What is the firms profit maximising output in the short run? MC 20 Price AVC 60 80 100 Output per day a) 60 units b) 80 units c) 100 units d) 140 units Cost, price (Rand)

10. The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. What is the firms profit maximising output in the short run? MC 20 Price AVC 60 80 100 Output per day a) 60 units b) 80 units c) 100 units d) 140 units Cost, price (Rand)

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 7PA
See similar textbooks
icon
Related questions
Question
Please answer all questions
10. The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. What is the firms profit maximising output in the short run? MC AC Price AVC 60 80 100 Output per day a) 60 units b) 80 units c) 100 units d) 140 units 11. In the long run, --will--- --the industry so that the market supply curve shifts to --------- the . .until prices----sufficiently to allow all firms to make a normal profit a) Existing firms, exit, right, drop b) New firms, enter, right, drop c) Existing firms, exit, left, rise d) New firms, enter, left, rise (puen) apud s0n
Transcribed Image Text:10. The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. What is the firms profit maximising output in the short run? MC AC Price AVC 60 80 100 Output per day a) 60 units b) 80 units c) 100 units d) 140 units 11. In the long run, --will--- --the industry so that the market supply curve shifts to --------- the . .until prices----sufficiently to allow all firms to make a normal profit a) Existing firms, exit, right, drop b) New firms, enter, right, drop c) Existing firms, exit, left, rise d) New firms, enter, left, rise (puen) apud s0n
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Federal Tax
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS