Long-run market supply curves are downward sloping if Group of answer choices All of these. input prices fall as the industry expands. firms are identical. the number of firms is restricted in the long run.
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- Sunrise Juice Company sells its output in a perfectly competitive market. The firm's total cost function is given in the following schedule: Output Total Cost (Units) ($) 0 50 10 120 20 170 30 210 40 260 50 330 60 430 Total costs include a "normal" return on the time (labor services) and capital that the owner has invested in the firm. The prevailing market price is $7 per unit. (a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm. (b) What is the firm's profit maximizing output level? (c) Is the industry in long-run equilibrium? Justify your answer.In a perfectly competitive industry, firms are likely to Multiple Choice A.) exit when there are economic profits because they know the profits will not last. B.) enter when price is equal to the minimum average total cost. C.) supply will decrease. D.) reduce the level of production when there are economic profits..Draw a short-run supply curve for a competitive market withidentical firms
- Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his only product) is $3. If the marginal cost function is MC=0.1q: (i) The profit-maximizing level of output is _____ (ii) The variable profit is _____ (iii) The producer surplus is _____ If Kenan also has a fixed cost of $50, then: (iv) The total profit is _____ If Kenan cannot avoid the fixed cost, Kenan should _____ Answer options (please only select from the following): -5, 0, 3, 5, 10, 30, 45, 50, continue to produce, shut down, otherImmagine a firm in a competitive market comes up with a new production method, which halves its marginal cost at all levels of Q. Fixed costa are unaffected. Which of the following statements are true? 1. The firm's AC at all levels of Q would be Lower. 2. The firm would extract an innovation rent from selling at the market price with lower costs. 3. The firm's point of minimum AC would be a higher level of Q. 4. The innovation would immediately cause the market price to drop.Managers of perfectly competitive firms must be cautious when deciding to permanently expand (or contract) the scale of production. What factors should go into the decision to expand the scale of production if the market price of your product increases? (select all that apply) A. Whether your product has a complement in consumption B. If the scale expansion is appropriate and not in excess C. If other firms are likely to enter the market D. Whether the price change is temporary or permanent
- 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.Claude's Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its present level of output, Claude's marginal cost is $65, average variable cost is $45, and average total cost is $67. To maximize his profit or minimize his loss, Claude should _____ Group of answer choices shut down. increase output. reduce output but not to zero. raise the price. continue producing the present level of output.Which of the FF. shows the connection between the short run and the long run equilibrium? A. positive economic profits in the short run attracts other firms to enter the industry B. negative economic profits in the short run forces the losing firms to exit from the industry C. the entry and exit will stop once the economic profits become zero, thus, attaining a long run equiilibrium D. all are correct E. none is correct
- A firm operates in a pure competition market whereby the market price for a product, product A, is currently $15.This firm has an output of Q and faces a total cost curve: TC =1/3Q^3 − 6Q^2 + 44Q, and the resultingmarginal cost curve is given: MC = Q^2- 12Q + 44.It is required that the firm has an output of at least 5.(i) What is the maximum profit of the company in the short run? (ii) At the price of $15, what is the break-even point?A9. A firm in a perfectly competitive market has a short-run total cost function equal to SRTC=4+20q, where q is the number of units the firm produces. The firm faces a market price of $10. Enter the optimal number of units should this firm produce to profit maximize?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.
