A perfectly competitive fırm produces at an output level where marginal revenue is equal to marginal cost and its: MC intersects the AVC at $150. MC intersects with the ATC at $200. MC intersects with MR at $170. What would you suggest this firm should do in the short run? The firm should continue to produce at a loss. The firm should continue to produce at a profit level of $20 per unit. The firm should continue to produce at a profit level of $30 per unit. The firm should continue to produce at a profit level of $50 per unit. The firm should shut down.

A perfectly competitive fırm produces at an output level where marginal revenue is equal to marginal cost and its: MC intersects the AVC at $150. MC intersects with the ATC at $200. MC intersects with MR at $170. What would you suggest this firm should do in the short run? The firm should continue to produce at a loss. The firm should continue to produce at a profit level of $20 per unit. The firm should continue to produce at a profit level of $30 per unit. The firm should continue to produce at a profit level of $50 per unit. The firm should shut down.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 5SQP

See similar textbooks

Similar questions

You are the manager and selling your product in a perfectly competitive firm market. Your firm and other firms sell the product at a price of RM 90. Your cost function is C(Q) = 50 + 10Q + 2 Q2. What level of output should you choose to maximize profits? What are your firm’s short run profits? What will happen in your market in the long run? Explain.
Annie owns a florist and operates in a perfectly competitive market. Suppose that price per unit is 16. If at the point where MC and MR curves intersect, ATC = $18 and AVC = $15, then Annie will stay open in short run. Shut down in the short run Earn zero profits in the short run earn positive profits in the short run
A perfectly competitive firm currently sells each unit of output at $3 and faces an average total cost of $5 at optimal output. What should the firm do? 1) Exit the industry as it is making a loss. 2) Continue to produce at the current output. 3) Continue to produce but reduce output. 4) Not possible to tell.
A company in a perfectly competitive market produces an output level Q = 100 where marginal revenue is equal to marginal cost and has the following revenue and cost levels: Marginal cost curve intersects the average variable cost curve at $150. Marginal cost curve intersects the average total cost curve at $200. Marginal cost curve intersects the marginal revenue curve at $170. At Q = 100, ATC = $210 and AVC = $155 Is this firm making a profit or a loss at Q = 100? What would you suggest this firm should do in the short run? Explain.
you are the manager of a firm that sells its product in a perfectly competitive market at a price of $60. Your firm's total cost function is C= 50 + 3Q 2 and your firm's marginal cost function is MC = 6Q. What level of profits will you make in the short-run?
MCQ: In order to maximize profits, the firm in a perfectly competitive industry produces where: Minimum point of the MC curve Minimum point of the AVC curve MC = MR Minimum point of the ATC curve
a perfect competitive firms has the following total cost function: total output : 0 1 2 3 4 5 6 7 total cost : 20 30 42 55 69 84 100 117 how much will the firm produce if the price of the production the market is RS. 14 per unit? how will it change its output if price rises to RS. 16 per unit?
The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=712+q^2 and Marginal Cost curve MC=2q. Market demand is Q=895-2P. What is the long-run equilibrium market price? Enter a number only, drop the $ sign.
A perfectly competitive firm has the following total cost function: Total output Total Cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much will the firm produce if the price of the product on the market is Rs. 14 per unit? How will it change its output if the price rises to Rs 16 per unit?
In the short run, TVC *is positive when output is zero.increases with increasing output.decreases when the firm is experiencing diminishing returns.decreases when the firm is experiencing increasing returns. The MC curve must be *rising when TC is rising.less than AFC when the average cost is rising.greater than ATC when the average curve is rising.falling when the ATC curve lies below the marginal curve. Which of the following statements is correct? *In order to maximize profits in the short run, a purely competitive firm should produce at the level where marginal cost is equal to price.A purely competitive firm will produce in the short run, so long as total receipts are sufficient to cover its total fixed costs. 2A purely competitive firm will always close down in the short run, whenever price is less than average total cost.In the long-run, firms incur costs that are fixed and variable.
A perfectly competitive firm would produce______________________________________if it wanted to maximize its profit: Answers: A. the output where MC equals price, the marginal revenue B. the output where the ATC curve is at a minimum C. as much output as it is able to produce D. the output where the marginal cost curve is at a minimum
For a perfectly competitive firm to operate and produce an output level in the short-run, the firm's Price must be greater than, or equal to, what cost for the firm?