EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 11, Problem 5RQ
To determine
The mismatch between the marginal revenue and the marginal cost in the long run.
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Students have asked these similar questions
The table below describes a firm that sells output in a perfectly competitive market.
Note the second column describes total costs.
O $8
O $12
O $6
Output
O $4
0
1
2
3
4
5
Which of the following market prices would cause the firm's profit-maximizing
output level to be equal to 5?
6
Total Cost (in
dollars)
$3
$9
$14
$18
$23
$30
$40
4
Suppose that the pen-making industry is perfectly competitive. Also suppose that each current firm and any potential firms that might enter the industry all have identical cost curves, with minimum ATC = $1.25 per pen. If the market equilibrium price of pens is currently $1.50, what would you expect it to be in the long run? LO11.2 a. $0.25. b. $1.00. c. $1.25. d. $1.50.
The following figure shows the revenue and cost curves for a firm X.
RM
10
a.
b.
C.
7
6
LO
5
4
3.5
0
20 25 30
MC
40
AVC
AC
AR=MR
Units
If a firm X achieves productivity efficiency, what will be the total revenuel
generated
At what price will a firm stop operating? Please explain.
If the market price is RM4.00, what is the total profit or total loss.
Chapter 11 Solutions
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