Multiple choice - microeconomics 41) Where is the competitive firm’s short-run supply curve located? A. the part of the average-variable-cost curve that lies above marginal cost B. the part of the marginal-cost curve that lies above average variable cost C. the part of the average-total-cost curve that lies above marginal cost D. the part of the marginal-cost curve that lies above average total cost 40) For any given price, a firm in a competitive market will maximize profit by selecting the level of output where price intersects which curve? A. marginal-revenue curve B. average-variable-cost curve C. marginal-cost curve D. average-total-cost curve

Multiple choice - microeconomics 41) Where is the competitive firm’s short-run supply curve located? A. the part of the average-variable-cost curve that lies above marginal cost B. the part of the marginal-cost curve that lies above average variable cost C. the part of the average-total-cost curve that lies above marginal cost D. the part of the marginal-cost curve that lies above average total cost 40) For any given price, a firm in a competitive market will maximize profit by selecting the level of output where price intersects which curve? A. marginal-revenue curve B. average-variable-cost curve C. marginal-cost curve D. average-total-cost curve

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 6.12P

See similar textbooks

Similar questions

Multiple choice - microeconomics 39) A profit-maximizing firm in a competitive market produces small rubber balls. When the market price for small rubber balls falls below the minimum of its average total cost but still lies above the minimum of average variable cost, what happens to the firm? A. It will experience losses, but it will continue to produce rubber balls. B. It will be earning only accounting profits. C. It will be earning both economic and accounting profits. D. It will shut down. 38)
M/c questions - Microeconomics 15) The competitive firm's long-run supply curve is that portion of the marginal cost curve that lies above which average cost? A. fixed cost B. variable cost C. total cost D. sunk cost 14) When a perfectly competitive firm makes a decision to shut down, which is most likely? A. price is below the minimum of average variable cost B. marginal cost is above average total cost C. marginal cost is above average variable cost D. fixed costs exceed variable costs
question7) the following is the total cost function and demand function of a certain firm TC= 100 +20Q + 7QQd = 130-2Pa)- What is the type of this market? why? b)Calculate the profit maximizing level of output and price for this firm. c) Does the firm make profit or loss at this level of output? Why? d)Should the firm produce this level of output or shut down? Why? please all do subparts because I have very urgent solution
Course: Microeconomic - Production Function and Perfect Competence Markets Establish the veracity of the following comments and explain your answer.1. The long-run industry supply is always infinitely elastic, since the free entry and exit of firms forces it to be located at the long-run minimum average cost. Explain. Graph is needed. 2. Assuming that the prices of the factors of production remain constant and there are no entry barriers, in the face of a positive demand shock, the price in the industry in the long run will not be affected. Explain Graph is needed 3. In the short run, the supply curve of a perfectly competitive industry ALWAYS has a positive slope. Explain Graph is needed 4. In perfect competition, a firm's supply is given by the increasing part of the marginal cost function. Explain Graph is needed
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
17. A market is in long-run equilibrium and firms in this market have identical cost structures. Suppose demand in this market decreases. a. Describe what happens to the profit-maximizing output quantity for individual firms as the market leaves and then returns to long-run equilibrium. b. Describe what happens to the market quantity as the market leaves and then returns to long-run equilibrium.
Question 3 The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses. a. How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing fertilizer? b. Draw two graphs, side by side, illustrating the present situation for the typical firm and for the market. [Upload a picture] c. Assuming there is no change in either demand or the firms’ cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied to the market.
Unit10 - Microeconomics Multiple choice A firm in perfect competition is a price taker because there are no good substitutes for its good. they are profit maximizers. it is very large. many other firms produce identical products. Under what condition would a perfectly competitive firm who is incurring an economic loss temporarily stay in business? if the total revenue is positive if the total revenue exceeds the variable cost if the total revenue exceeds the fixed cost if the total revenue is increasing When firms in a perfectly competitive market are making earning an economic profit, in the long run, firms will exit the market. firms will continue to earn a profit. average cost will shift downward. firms will enter the market.
M/c question - Micro 19) Refer to Figure 14-3. When the price is P2 and the firm maximizes its profit or minimizes its losses, what will occur at the firm? A. It will experience a loss but continue to operate. B. It will experience a zero profit. C. It will experience a positive profit. D. It will shut down 18) Refer to Figure 13-7. When does the firm experience economies of scale? A. if it changes its level of output from Q1 to Q2 B. if it changes its level of output from Q3 to Q4 C. if it changes its level of output from Q4 to Q5 D. if it changes its level of output from Q2 to Q3
16. The firm in the figure represents the cost structure for all firms in the industry. Describe the steps that will lead to long-run equilibrium in this market.
[TRUE / FALSE] Please explain In the real-world, marginal cost curve is usually U-shaped.Therefore, in a perfectly competitive market, a firm can maximize profit at two different output levels in the short-run
1. The law of diminishing returns indicates that:a. as extra units of a variable resource are added to a fixed resource the marginal product will decline beyond some point.b. because of economies and diseconomies of scale a competitive firm's long-run average cost curve will be U-shaped.c. the demand for goods produced by purely competitive industries is down sloping.d. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction. Why do marginal costs tend to rise, and marginal benefits tend to fall? 2. Is it possible to avoid Diminishing Marginal Return? Why?3. Suppose that the Law of Diminishing Returns sets in immediately (that is, there is no range of output over which the Division of Labor holds). What would the short run marginal cost, average cost, and average variable cost curves look like? Explain.4. Which situation below describes the increasing returns stage of the production…