Microsoft is the only business that sells Computer Operation System in the world. Assuming that Microsoft is maximizing its profit, which of the following statements is true? Select one :
Q: The demand schedule or curve confronted by the individual, purely competitive firm is O B. perfectly…
A: The perfect competition is the type of market structure where there are large number of buyers and…
Q: In a constant-cost industry, any shift in demand will eventually Select one: O a. be met by a…
A: 1) In a constant-cost industry, any shift in the demand will be followed by an equal shift in the…
Q: (Figure: Interpreting Short-Run Cost Curves) Given the information from the figure, if price equals…
A: There are three short run cost curves showing in the above graph. Marginal cost curve, average…
Q: A firm in a perfectly competitive market has no control over price because O a. the government…
A: Since you have asked multiple questions, we have answered the first question for you. If you require…
Q: What is the relationship between a perfectly competitive firm's marginal cost curve and its supply…
A: In the production process, different inputs are used to produce the final output. Each input has its…
Q: QUESTION 15 If a firm decides to exit the market will be paying a. only the fixed costs but not the…
A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…
Q: The demand schedule or curve confronted by the individual, purely competitive firm is O A.…
A: Demand curve elasticity decreases as we move from perfect competition to monopoly.
Q: Suppose your firm operates in a perfectly competitive market and has a U-shaped average variable…
A: In the perfectly competitive market, it can be seen that marginal revenue and average revenue are…
Q: Which of the following constrain (that is, limit) a firm's profits? I. its technology II. its…
A: A firm's profits is constrained by its technology, information and the market in which it operate.
Q: In the long run, perfectly competitive firms will exit the market if the price is O A. equal to…
A: In a perfectly competitive market, in the long run, price is equal to the minimum of the average…
Q: Suppose Cindy's Glove Factory operates in a perfectly maximizing level of output. Suppose further…
A: A perfectly competitive firm producing its profit maximizing level of output. At this output level…
Q: A competitive firm operating in the short run is producing at the output level at which ATC at a…
A: In short run the profit maximization level of output is produced at point where MR or Price = MC.…
Q: 2. Assume that the market for G.I. Jane dolls is perfectly competitive. The market is known to be…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A profit-maximising firm considers its marginal revenue (MR) and marginal cost (MC) functions. Which…
A: The output level at which MC equals MR is known as maximum profit. The firm will enhance its profit…
Q: What is the marginal revenue gained when one more unit of output is sold? Oa. The price at which the…
A: Answer: Marginal revenue: marginal revenue refers to the addition to the total revenue by selling an…
Q: 5. "In perfect competition, firm's demand curve is:" O a. Perfectly Elastic (horizontal) O b.…
A: Option (a).
Q: Conceptually, in the long run, which of the following statements is true about profit-maximizing…
A: In perfectly competitive market there are many firms and many consumers. The price is market…
Q: Suppose the market for apples is perfectly competitive. The short-run average total cost and…
A: Here, marginal cost curve and average total cost curve of an apple grower is given.
Q: If Doug's Dry Cleaners operates in a perfectly competitive market, and its shutdown price is…
A: If a perfectly competitive firm's market price is below average variable cost at the quantity of…
Q: Consider the following data facing a perfectly competitive firm: price = $20, quantity of output…
A: Answer: option (d) Explanation: Given: Price=$29Quantity produced=600 unitsAverage total…
Q: Use this graph to answer the following question: Average & Marginal Costs 140 130 120 001 06 08…
A: A firm is a price taker in a perfectly competitive market,where the profit is maximized at the…
Q: Wheat is produced in a perfectly competitive market. Market demand for wheat increases. This will…
A: In the perfectly competitive market, demand for a product from a specific firm is very elastic due…
Q: Suppose that the widget industry is a perfectly competitive, decreasing cost industry and the…
A: A decrease cost industry is one that operates the business with lower average cost when output is…
Q: For a profit-maximizing price-taker firm, a reduction in the price of a good will cause to and the…
A: A perfect market, sometimes known as an atomistic market, is defined by various idealising…
Q: In a competitive market with free entry and exit from the market a permanent rise in demand will…
A: Answer: If the demand rises permanently then in the short run price will increase. An increase in…
Q: 20 C 16 14 Demand 3 Quantity (haircuts per hour) Using the image above, suppose that the firm…
A: Note: You have uploaded more than one question at a time. Hence, we shall solve the first question…
Q: Under perfectly competitive conditions, if a good sells at $100 for a firm whose total costs are…
A: Total costs refers to the total amount the firms have to spend to produce given quantity of goods…
Q: At a current level of production of 10,000 per day in its Garner plant, the marginal cost of…
A: According to the question, it is given that : Output per day is 10,000 Marginal Cost is 50 cents…
Q: MC ATC AVC MR2 MR, 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total cost at the…
A: For a firm, profit is maximized at a point where marginal revenue intersects the marginal cost…
Q: A firm facing a demand curve will have zero quantity demanded if it raises its price above the…
A: In the perfectly competitive market, the price is decided through the market. An individual firm…
Q: If the perfectly competitive firm is producing an output level at which price equals marginal cost,…
A: A perfectly competitive firm is a price taker and produces at P=MC. Profit= (P-ATC)Q
Q: The figure above shows the marginal revenue and long-run cost curves for a perfectly competitive…
A: A perfectly competitive firm operates in a market with a large number of identical firms, each…
Q: Which of the following is true for monopoly and perfect competition? O A. The demand for the…
A: The markets around the world are made up of the buyers, who purchase the goods, and services sold in…
Q: In a competitive market with free entry and exit from the market a permanent rise in demand will…
A: In a perfectly competitive market, large number of small identical firms operates. The price in the…
Q: What are the three conditions for a market to be perfectly competitive? For a market to be perfectly…
A: Perfect competition is a market structure in which a large number of sellers sell products in the…
Q: With free entry and exit, the long-run market supply in a perfectly competitive market is O a.…
A: Firms have the ability to enter and exit the market under perfect competition. As a result, when…
Q: In a perfectly competitive market, there are firms, all selling products. Select one: O a several…
A: Answer to the question is as follows:
Q: The accompanying table gives cost data for a firm that is selling in a purely competitive market. We…
A: Total cost is the sum of fixed and variable costs.
Q: Quantity (cases) Total Revenue (dollars) $75 Price Total Cost (dollars) $75 (dollars) $60 70 140 195…
A: please find the answer below.
Q: Is it possible for a perfectly competitive firm to be maximizing profits, but rot achieving resource…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Q: Which of the following statements is TRUE? O Assume that wheat farmers operate in a competitive…
A: A competitive industry refers to a perfect competition market structure. Perfect competition market…
Q: Which of the following statements in the full competitive market is correct? Choose an answer O 1.…
A: In a competitive market, firms face a very high degree of competition that affects their gain from…
Q: Assume that restaurants in aiports rent the space that they occupy and that the restaurant industry…
A: Given : The restaurant industry is competitive, assuming the restaurants in the airports rent the…
Q: When would a perfectly competitive industry have a long-run supply curve that slopes downwards? O a)…
A: Perfect competition market is market where large number of buyer and seller sell similar products…
Q: Suppose that a cookie factory in a competitive market fices the following revenues and costs:…
A: 1st part answer: Figure attached below show the profits computed at each level of quantity by…
Q: What is a price taker? A price taker is O A. a firm with a downward-sloping demand curve. O B. a…
A: Q1) price taker is a firm who is so small as a unit in a market that the firm has no control on the…
Q: A profit-maximising firm considers its marginal revenue (MR) and marginal cost (MC) functions. Which…
A: Competition between firms generally occurs when the market consisted of multiple firms, The…
Step by step
Solved in 3 steps
- Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.Answer the following: 1. Assuming that the product’s price is P58 per pack, should the competitor sell in the short-runWhy or why not?If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)?What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack?A. Assuming that the product price is P42 per pack, answer the same questions in letter A.B. Because of increasing sellers of masks in the market, the product’s price further decreased to P32per pack. Again, answer the same questions in letter A.C. When is this seller going to shut down?D. Now generate the seller’s supply curve of mask in the short run.The production of plastic bags characterized by high fixed costs and low marginal costs. As a result, we would expect (relatively) O Few small firms in this market O Many large firms in this market O Many small firms in this market O Few large firms in this market
- Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 Are the price and quantity combinations above for a perfectly competitive industry? Select one: O a. No, they are not because the demand curve should be perfectly elastic. O b. No, because the quantities are too low. O c. Yes, they are because the demand curve is downward sloping. O d. Yes, they are because the price falls the same amount for each increase in quantity. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.4 The market for Blu-ray movies is perfectly competitive, with the market supply curve given by O = 15P and the market demand curve given by Q = 400 - 10P. The resulting market equilibrium is P* = 16, Q*=240. (a) Calculate the price elasticity of demand at the market equilibrium. Is demand elastic or inelastic at this point, and what does this mean? (b) Suppose that supply increases so that producers are willing to sell 10 more Blu-rays at any price, and at the same time demand decreases so that consumers are willing to purchase 40 fewer Blu-rays at any price. Find the new equilibrium price and quantity.Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
- a. Are the following statements true or false? Explain your reasons. For a firm with price in excess of average total cost, the presence of economic profits implies that the firm should increase output in the short run even if price is below marginal cost. If marginal cost is rising with increasing output, average cost must also be rising. Fixed cost is the same at each output level except when no output is produced. When a firm produces no output, there are no fixed costs. b. Allsmart’s demand curve is given by Q=10-P for its dishwashers. The marginal and average cost is $3 per dishwasher produced. Complete the following table.The profit-maximizing quantity is the one at which the marginal revenue of the last unit was: O greater than the marginal cost. O less than the marginal cost. O equal to the marginal cost. O zero.A small firm operating in a purely competitive market has fixed costs of $45 per day compensates each employee $96 per day and has daily input and raw material costs as indicated in the table below. A. What would be the profit maximizing level of production if demand increased such that each unit sold for $130?, will the company make an economic profit producing this quantity of output? b: suppose the demand significantly decreased so that price for a unit of ouput sold to $115 each. What should the firm do? Why?
- Place the orange line (square symbol) on the following graph to show the most likely long-run supply curve for pistachios. (Note: Place the points of the line either on Y and V or on Y and S.) PRICE (Dollars per pound) 48 40 32 16 8 O 0 4 S V Short-Run Supply 2 6 8 10 QUANTITY (Thousands of pounds of pistachios) 12 Long-Run Supply ? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Kasey Puzzle, Inc. sells geography-based puzzles. Kasey currently sells 25,000 units a month for $40 each, has variable costs of $20 per unit, and fixed costs of $300,000. Kasey Puzzle is considering increasing the price of its units to $60 per unit. This will not affect costs, but demand is expected to drop 20%. Should Kasey Puzzle increase the price of its product? с Multiple Choice O O Yes, profit will increase $500,000. No, profit will decrease $500,000. No, profit will decrease $300,000. Yes; profit will increase $300,000.2. Assume now that the costs of shipping are so large that Australian consumers can buy hand sanitizers from only one designated seller in Australia through both eBay and Amazon and there is no possibility of buying hand sanitizers in person in retail stores or any other online platforms. Explain with the help of a diagram whether this seller would be making a profit or a loss in the short run and in the long-run. Since it is one designated seller selling on two online market platforms (eBay and Amazon) would this be a monopoly or duopoly?
