The market demand and market supply functions for a perfectly competitive market are given below: Qd = 400 - P Qs = 4P 1) What is the marginal revenue for each firm? A. MR=$400 B. MR=$0 C. MR=$80 D. MR=$4 2) If there are 160 identical firms in the market, each firm produces _____ A. 320 B. 160 C. 2 D. 80 3) If there are 160 identical firms in each market, total revenue for each firm is A. $25,600 B. $16,000 C. $160 D. $12,800 4) Suppose there are 160 identical firms in the market and each firm's total cost at equilibrium is given as $140. Calculate firm profit. A. $20 B. $0 C. $140 D. $25,460

The market demand and market supply functions for a perfectly competitive market are given below: Qd = 400 - P Qs = 4P 1) What is the marginal revenue for each firm? A. MR=$400 B. MR=$0 C. MR=$80 D. MR=$4 2) If there are 160 identical firms in the market, each firm produces _____ A. 320 B. 160 C. 2 D. 80 3) If there are 160 identical firms in each market, total revenue for each firm is A. $25,600 B. $16,000 C. $160 D. $12,800 4) Suppose there are 160 identical firms in the market and each firm's total cost at equilibrium is given as $140. Calculate firm profit. A. $20 B. $0 C. $140 D. $25,460

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.7P

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