looking for help with this homework question thank yoU! QUESTION 3A firm in a perfectly competitive industry will maximize profits by shutting down if the following are true: (Select all that are true)Total Revenue < Variable CostsProducer surplus is positiveTotal Revenue > Producer SurplusLoss from production of Q* >Fixed CostsLoss from production of Q*< Fixed CostsPrice > Average variable costPrice < Average variable cost

A perfectly competitive market is a market structure where each and every firm which are huge in…

QUESTION 3 A firm in a perfectly competitive industry will maximize profits by shutting down if the following are true: (Select all that are true) O Total Revenue < Variable Costs Producer surplus is positive O Total Revenue > Producer Surplus Loss from production of Q* >Fixed Costs Loss from production of Q*< Fixed Costs Price > Average variable cost Price < Average variable cost O O O O O

QUESTION 3 A firm in a perfectly competitive industry will maximize profits by shutting down if the following are true: (Select all that are true) O Total Revenue < Variable Costs Producer surplus is positive O Total Revenue > Producer Surplus Loss from production of Q* >Fixed Costs Loss from production of Q*< Fixed Costs Price > Average variable cost Price < Average variable cost O O O O O

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 12QP

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Assume that a firm in a perfectly competitive industry has the following total cost schedule:OUTPUT (UNITS) TOTAL COST ($) 10 110 15 150 20 180 25 225 30 300 35 385 40 480a. Calculate a marginal cost and an average cost schedule for the firm. b. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What are total profits? c. Is the industry in long-run equilibrium at this price?
The Emerald Company, a firm in the perfectly competitive custom jewelry industry, asks you for your expert economic opinion. They tell you the following: Total revenue is $110,000, Total fixed costs are $80,000 Total variable costs are $100,000 Marginal cost is $220/unit Quantity produced is 550 unit What is your advice based upon the information above? Keep operating and do not change the current production level. Keep operating and increase production Keep operating but decrease production Shut-down immediately
Question 12 (i) Monica can go to work today and earn $500. However, she is also thinking about studying for the English test. If she studies for the English test she will not be able to go to work. What is Monica’s opportunity cost of studying for the English test? A: $0 B: $500 C: $500 minus the benefit from studying for the test D: The benefit of studying for the test minus $500 (ii) Which of the following is(are) considered as sunk cost for a competitive firm in the short-run? Variable cost Fixed cost A: 1 only B: 2 only C: Both 1 and 2 D: Neither 1 nor 2
The following table shows the output and total cost for a firm in a purely competitive industry Output TC AC MC 0 40 1 95 2 115 3 130 4 150 5 175 6 210 7 260 8 330 Is the firm operating in the short-run or long run? Give a reason to your answer
A perfectly competitive firm currently sells each unit of output at $3 and faces an average total cost of $5 at optimal output. What should the firm do? 1) Exit the industry as it is making a loss. 2) Continue to produce at the current output. 3) Continue to produce but reduce output. 4) Not possible to tell.
Assume that a firm in a perfectly competitive industry has the following total cost schedule: Calculate a marginal cost and an average cost schedule for the firm to complete the following table. Output Total Cost Marginal Cost Average Cost (units) ($) ($) ($) 10 440 15 600 20 720 25 900 30 1,200 35 1,540 40 1,920 If the prevailing market price is $68 per unit, units will be produced. Profits per unit will be and total profits will be . Is the industry in long-run equilibrium at this price? No Yes
true/false 1- if a perfectly competitive firm shuts down in the short run, its variable cost equals zero. 2- if a perfectly competitive firm shuts dowm in the short run, its total cost equals zero.
Question 13 If a firm operating in a competitive industry shuts down in the short run, it can avoid paying Group of answer choices fixed costs. variable costs. all (total) costs. nothing. The firm must pay all its costs, even if it shuts down.
Suppose you start a business of manufacturing computer software. Assume that this computer software company is a perfectly competitive firm. Your fixed cost per month is Tk. 80,000 and total cost is Tk. 140,000. If you sell 1000 software per month and the average revenue is Tk. 70, what should be your short-run decision regarding shut down and long run decision regarding exit?
Problem 2: Suppose in a perfectly competitive industry that the market supply and demand forces combine to produce a short-run equilibrium price of$100. Suppose further that a single firm in this industry has a weekly total cost function expressed by the equation: \[ \mathrm{TC}=200+60 q-6 q^{2}+(1 / 3) q^{3} \] (a) Calculate the equations facing the firm: demand, MR, and AR. (b) Calculate the following cost equations of this firm: TFC, TVC, AFC, AVC, MC, and ATC. (c) What is this firm's profit maximizing level of output? What are its profits? (d) At what level of (q) will this firm shut down its operations?
Marginal Analysis II Question 1 Assume that a competitive firm has the total cost function: TC=1q3−40q2+870q+1500TC=1q3-40q2+870q+1500 Suppose the price of the firm's output (sold in integer units) is $700 per unit. Using calculus and formulas to find a solution (don't just build a table in a spreadsheet as in the previous lesson), how many integer units should the firm produce to maximize profit? Please specify your answer as an integer. Hint 1: The first derivative of the total cost function, which is cumulative, is the marginal cost function, which is incremental. The narrated lecture and formula summary explain how to compute the derivative. Set the marginal cost equal to the marginal revenue (price in this case) to define an equation for the optimal quantity q. Rearrange the equation to the quadratic form aq2 + bq + c = 0, where a, b, and c are constants. Use the quadratic formula to solve for q: q=−b±b2−4ac−−−−−−−√2aq=-b±b2-4ac2a For non-integer quantity, round up and down to…
Question 3 For a firm operating in a competitive industry, which of the following statements is not correct? Group of answer choices Total revenue is constant. Price equals marginal revenue. Marginal revenue is constant. Price equals average cost at long-run equilibrium.