10 Production Totalcost8011002115314041705210Assume that these are the costs of productionfor an average perfectly competitive firm andthat the price you observe is $30. At this price,the entry of more producers would be observedSelect one:TrueFalse

In perfectly competitive market, firms produce identical goods. Firms do not have any control over…

Answered: Production Total cost 80 1 100 2 115 3…

Business

Economics

Production Total cost 80 1 100 2 115 3 140 4 170 210 Assume that these are the costs of production

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 18RQ: What two rules does a perfectly competitive firm apply to determine its profit-maximizing quantity...

See similar textbooks

Related questions

Q: What is the strong stationarity principle of a time series?

Q: Question 9 Which of the following is not true about Lindahl pricing? a. There is unanimous agreement…

A: The Lindahl price basically refers to a hypothetical price that a person might be prepared to pay…

Q: 41. Which of the following describes a situation where the marginal social cost is greater than the…

A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Q: To produce x units of t-shirts costs C(x) = 7.50x + 1200. The revenue is R(x) = 16x. a) Find the…

A: At break even, total revenue is equals to total cost.

Q: Objects with distinct shapes, colours, are called brand character. or patterns that are associated…

A: False - Brand Character is the set of human attributes and characteristics associated with the brand…

Q: As long as a country has high GDP growth rate, it can be categorized as an emerging market economy.…

A: Emerging market economies are those economies that are into a transition period, and moving toward…

Q: What does the area formed by P1, M, Q2, and 0 represent? A-The firm's total revenue at the…

A: A monopoly firm produces at MR =MC in order to maximize profit. Since monopoly produces at MR = MC,…

Q: Identify and explain the main factors that determine long-run economic growth. How do they relate to…

A: So here are the answer that the economic development is fueled by three basic factors.

Q: Demand for Product Z 12 4, 10 10 8, 8 16,6 24,4 4 30. 5 10 15 20 25 30

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price.

Q: What does monopolistic competition provide producers? A. One exclusive brand to sell. B. Total…

A: Monopolistic Competition is a type of market where there are large number of buyers and single…

Q: A homogenous product is produced by two rival firms. They have the same costs. The market demand is:…

A: a. P= 80-Q1-Q2 C1= 50Q1 C2=50Q2 MC1= MC2=50 TR1= PQ1 = (80 -Q1 - Q2)Q1 = 80Q1 - Q12 -…

Q: 2) Explain the macroeconomic effects of a tax cut according to the Ricardian Equivalence…

A: According to Ricardian equivalence, people are forward-thinking and believe in consumption…

Q: Controlling inflation is a more important policy objective than ensuring full employment’.…

A: Inflation and unemployment are two of the key factors to influence the economic growth of a country…

Q: Briefly explain what is meant by elasticity of demand and its uses and the factors that influence…

A: Elasticity is a concept that describes how much the quantity sought or supplied changes as the…

Q: 4. The graph below shows the efficient contracts and the contract curve. a. Explain the relationship…

A: Contract curve represent various combinations of two goods allocated between two parties or…

Q: A worker earns £15 pounds an hour and chooses to work six hours a day. The worker has no other…

A: Given information W=15 per hour Hours of work=6 hours per day.

Q: Suppose a Japanese car costs 150,000 yen, a similar American car costs $25,000, and a dollar can buy…

A: The measure that depicts the rate of one currency being measured in terms of another currency to…

Q: Use the chart to answer the following question. ? Reduce the number of quotas Growth of trade Reduce…

A: The chart has the following : Reduce the number of quotas. Growth of Trade Reduce protective…

Q: Which of the bank safety regulations enacted in the 1930s do you believe are most important in…

A: The bank is an institution that plays an important role between depositor and withdrawal. The…

Q: What is the relation between fixed costs and total costs? Question 5 options: Two of the other…

A: Fixed cost is a component of total cost and is defined as the cost of production that does not…

Q: Why did bank failures increase, with a lag, after deposit insurance became available to banks? What…

A: The 2017-2018 financial crisis was the worst since the Great Depression.This wave of failing banks…

Q: Suppose the economy has been at full employment for the past two years with a 4 percent inflation…

A: GDP is the value of final goods and services produced in the country within a given period of time

Q: In a perfectly competitive market a firm produces where equals to . If MR is greater than MC, the…

A: In perfect competition, there are large number of firms selling identical goods

Q: .. Consider a market that consists of 50 consumers, i = 1, .., 50, each with the following quasi-…

A: Since the question you have posted consists of multiple parts, we will answer the first three…

Q: 8. A consumer bas utility function u(z, y) = VIy, for two goods, X and Y, where c is some positive…

Q: Suppose the market price of a good is $20 and TC=0.5Q2. A. What Q should a profit maximizing…

A: A competitive firm is a price taker as there are large number of firms selling identical goods

Q: Profit maximizing condition in any market.

A: The process of ensuring the highest possible levels of both production and price are attained in…

Q: A monopolist has the demand and marginal cost as shown in the table below. There is no fixed cost in…

A: The monopolist is the person who has full control over the market.

Q: Question 4 Given the isocosts and isoquants of various quantities of labor and capital in the ficure…

A: Isoquant shows different combinations of two inputs for a given level of output to be produced,…

Q: cosity senaing inatrument coet S46.000 and has a $5.500 salvage value with a 7-years recovery period…

A: Given information, Machine cost = $47000 Salvage value = $5500 Recovery period = 7year Operating…

Q: In a particular very small region, the consumer price index, C, depends on the current value of…

Q: Use the information in the table to answer the following question Income Amount of % of Income Tax…

A: There are three types of tax: 1. Progressive 2. Regressive 3. Proportionate

Q: Explain how and why the "invisible hand" works to ensure that producers provide quality services and…

A: here we explain how and why the “invisible hand” works to ensure that producers provide quality…

Q: Suppose the aggregate demand (AD) and short-run aggregate supply (AS) schedules for an economy whose…

A: Answer 1. The SRAS curve can be divided into three zones: a horizontal Keynesian zone, a vertical…

Q: f a combination of Brexit measures and Covid-19 restrictions results in a recession then how might…

A: f Brexit causes a recession, the country's government and the Bank of England will pursue…

Q: Which one of the following is not a major source of funds for the U.S. federal government? Multiple…

A: Individual income taxes account for around half of all government revenue. Another 36% comes from…

Q: 3. Minimum wage legislation The following graph shows the labour market in the fast-food industry in…

A: The demand curve in a market is a downward sloping curve that shows that there is an inverse…

Q: Give at least 2 examples on how a firm profit from global expansion

A: The term global business alludes to any business that happens across worldwide boundaries. At its…

Q: Can you answer me as soon as possible , urgentttttt!!!!!!!!!!! Bodyguard Ltd. was established in…

A: An ethical dilemma, also known as an ethical paradox or a moral dilemma, is an issue that arises in…

Q: 4. The graph below shows the efficient contracts and the contract curve. a. Explain the relationship…

A: When applied to an edgeworth box, the definition of a contract curve is just the addition of all of…

Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC =…

A: Average cost is the per unit cost of production

Q: In the Neo-Classical macro model, a decrease in the money supply will O Decrease the price level,…

A: Answer is given below

Q: 6. Demand for money and how demand for money curve look like, it’s relationship with GDP and…

A: Money and Money supply Money refers to the exchange of medium for commodities and services. Money…

Q: An industry "cluster" arises because of the increase of productivity of the firms participating in…

A: An industry "cluster" refers to many industries popping up at the same place i.e. nearby each other…

Q: Alamo Car Rentals In the early 1990s, Alamo was the most profitable (as a percentage of sales) and…

A: Pricing is defined as the money that the sellers can charge for the good or service that it provides…

Q: What is the Porter's Five Forces of Alibaba Group: The Rise of a Platform Giant?

A: About the group Firm "A" is a worldwide tech company based in China that specializes in e-commerce,…

Q: Use the chart to answer the following question. Characteristics of Market Structures Barriers Number…

A: Market structure basically refers to a term used in economics to explain how businesses are…

Q: A measure of the outcome of a decision such as profit, cost, or time is known as a O payoff O…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: PT POQ Indonesia plans to produce a new product that requires an initial investment of IDR 150…

A: Initial Investment = 150 million Maintenance Cost = 3500 per hour Other cost = 75 million per year…

Q: Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for $72…

A: A perfectly competitive firm is a price taker, which means it takes the price determined by the…

Question

Production Total
cost
80
1
100
2
115
3
140
4
170
5
210
Assume that these are the costs of production
for an average perfectly competitive firm and
that the price you observe is $30. At this price,
the entry of more producers would be observed
Select one:
True
False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?
Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
What two rules does a perfectly competitive firm apply to determine its profit-maximizing quantity of output?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
Why will profits for films in a perfectly competitive industry tend to vanish in the long run?
ASAP Does the state of mr=mc in a perfect competitive market mean that the firm is supposed to sell out no matter how much marginal cost they put? Because mr=mc occurs only if the product sells out 100% corresponing to the put marginal cost, right? I also know that the state is occured because the price in a competitive market is fixed, but i wondered if the state means also selling out completely.
A market is in long-run equilibrium and firms inthis market have identical cost structures. Supposedemand in this market decreases. Describe whathappens to the profit-maximizing output quantityfor individual firms as the market leaves and thenreturns to long-run equilibrium.
An industry currently has 100 firms, each of whichhas fixed cost of $16 and average variable cost asfollows:Quantity Average Variable Cost1 $12 23 34 45 56 6a. Compute a firm’s marginal cost and average totalcost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How muchdoes each firm produce? What is the total quantitysupplied in the market?c. In the long run, firms can enter and exit themarket, and all entrants have the same costs asabove. As this market makes the transition to itslong-run equilibrium, will the price rise or fall?Will the quantity demanded rise or fall? Will thequantity supplied by each firm rise or fall? Explainyour answers.d. Graph the long-run supply curve for this market,with specific numbers on the axes as relevant.
Please help ASAP What is the firm's fixed cost? What is the profit-maximizing level of output? Given that half of the fixed cost is avoidable and the firm produces at the optimal level of output, what is the firm's avoidable cost? Should the firm shut down its production? yes or no
A Milton company works in perfect competition market, its total cost curve in short run is given in this function: TC = 200 − 4Q + 0.5Q2 a. What output level should the firm produce to maximize profit? knowing that averagerevenue is $10. b. What is the firm profit at this level of output?>>>>>>>>>>>>>>>>>>>>>>>>>>>>Suppose the production function for high quality brandy is given by : Q = √KLWhere q is the output of brandy per week and L is labor hours per week ., in the short run K is fixed at 100, so the short run production function is Q = 10√L a. If the capital rents for 10$ and the wage are 5$per hour ., write the short run total cost function. b. How much will the firm produce at a price of 20$ per bottles of brandy ? c. How many labor hours will be hired per week?…
Many small boats are made of fiberglass and a resinderived from crude oil. Suppose that the price of oilrises.a. Using diagrams, show what happens to the costcurves of an individual boat-making firm and tothe market supply curve.b. What happens to the profits of boat makers in theshort run? What happens to the number of boatmakers in the long run?