In long-run equilibrium in a perfectly competitive market, which of the following is true? (a) Average cost equals marginal cost (b)Profit = 0 (C)Price equals marginal cost (d)all of the above
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(10) In long-run equilibrium in a
(a) Average cost equals marginal cost
(b)Profit = 0
(C)Price equals marginal cost
(d)all of the above
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- Question 1 A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?The online shopping market is perfectly competitive. Profit-maximizing firms in the market are selling goods bu are currently incurring economic losses. What does this tell us about the market price? Select one: a. Market price must be less than average total cost. b. Market price must be greater than the average variable cost. C. Market price must be equal to marginal cost. d. All of the above.Multiple choice question - Micro 33) In a competitive market that is characterized by free entry and exit, what will be the result? A. All firms will operate at efficient scale in the short run. B. The price of the product will differ across firms. C. All firms will operate at efficient scale in the long run. D. The number of sellers in the market will steadily decrease over time 32) When profit-maximizing firms in a competitive market are earning profits, what must be happening in the market? A. The most inefficient firms will be encouraged to leave the market. B. New firms will enter the market. C. Market supply must exceed market demand at the market equilibrium price. D. Market demand must exceed market supply at the market equilibrium price
- Question 7 Which of the following statements is not true? Economies of scale means lower average cost when production increases. can arise as a result of specialisation of labour. are different than economies of scope. cannot arise on a market with perfect competition.Question 3 A profit maximizing firm in a competitive market is currently producing 150 units of output at a price of $20. Average total cost is $8 and fixed cost is $200. What is this firm’s profit? $1,800 $2,000 $800 $1,600multiple choice Suppose Adam’s Apples, a small firm supplying apples in a perfectly competitive market, decides to cut its production in half this year. As a result, the 1- market price will rise 2-market price will fall 3-market quantity will rise 4- the firm's revenues will be cut in half
- Q9 needed Q8 pic is just for reference Question 9 Refer to Table 5-1 and the firm in Question 8. At which quantity will the firm choose to produce? (Remember that this is a profit-maximizing firm in a perfectly competitive market.)Hide student question Time Left : Suppose that the additional revenue that comes from the 100th unit is $5, and the marginal cost of the 100th unit is $4.9. Which of the following is the best strategy for a perfectly competitive firm? Group of answer choices a)the firm should not produce the 100th unit because the additional profit from the 100th unit is $0.1 b)the firm must increase production since marginal revenue is greater than marginal cost. c) the firm must decrease production because marginal cost will decrease with production. d)the firm should not increase production since the opportunity cost of the 100th unit is higher than the additional revenue.Question 1 A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. Is the efficient scale of the firm more than, less than, or exactly 100 units?
- 1.- A company that works in a perfectly competitive market has a total cost function: TC = Q3 - 36Q2 + 540Q + 600 The supply and demand functions in that market are: QS = 5P -500 Qd = 4,000 -10P a) How much should you produce to maximize your profits? b) Find what benefit you will get c) Calculate the closing point for the company d) Represent graphically the market equilibrium and that of the company, including the closing point e) Locate the rectangle that represents profits on the company's equilibrium graph. Calculate your área considering the values taken by the base and the height. Validate that it reaches the same result (or very close) to the one obtained in part b).ANSWER IF TRUE OR FALSE: no need for long explanation. 1. The welfare of the consumers is maximized under a purely competitive market. 2. It is easy to exit or stop production if the market condition is no longer profitable if there is very low investment in fixed assets. 3. Patents and copyrights serve as barriers in entering an industry and in competing against the already existing producers.In a perfectly competitive market, if market supply increases, price Question 15 options: decreases increases stays the same None of the above