ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
4th Edition
ISBN: 9781285423548
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 8, Problem 5.9PA
To determine
The reasons for firms choosing to operate in a
Why firms choose to operate in perfect competition even though they earn no economic profits in the long run.
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Students have asked these similar questions
Question 1. What impact do falling input prices have on a market’s long-run supply curve?
a. Falling input prices push the market supply curve to the left.
b. Falling input prices push the market supply curve to the right.
c. Falling input prices do not impact the market supply curve.
Question 2. How can market prices fall when both the demand and supply for a good or service increase?
a. Market demand would have to increase greater than market supply.
b. Market supply would have to increase greater than market demand.
c. Market demand and supply would have to increase by the same amount.
d. None of the above.
Question 7.7. Markets in which firms sell their output of goods and services are called resource markets.
product markets.
command markets.
mixed markets.
11-
Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to increase their supply of halwa for the coming month of August 2021. However, due to COVID-19 Pandemic, the only available resources they could change are the number of their workers. Determine which type of production period Al Shaihani business is facing?
a.
Long run
b.
All of these
c.
Short - run
d.
Mid-run
Chapter 8 Solutions
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
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- Question 17: The sequence of processes required to produce and distribute a product is know as A Supply chain B Conglomeration C Integration D Process Managementarrow_forwardquestion7) 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 solutionarrow_forwardQuestion 5 The measure of the cost of a particular good in terms of what is given up to produce that good is called an explicit cost. an opportunity cost. a necessary cost. a dollar cost. a fixed cost.arrow_forward
- Table 11.4 Number of Workers Total Product Product Price ($) 0 0 4 1 15 4 2 29 4 3 42 4 4 54 4 5 65 4 6 75 4 7 84 4 8 92 4 9 99 4 10 105 4 Refer to Table 11.4 for the data for a perfectly competitive firm. The first column shows the number of workers employed in production, the second column shows the total product of the firm, and the third column shows its product price. From the data in the table, it can be said that the marginal revenue product begins to decline with the second worker hired. Group of answer choices False Truearrow_forwardmultiple choice Suppose Adam’s Apples, a small firm supplying apples in a perfectly competitive market, decides to cut its production in half this year. As a result, the 1- market price will rise 2-market price will fall 3-market quantity will rise 4- the firm's revenues will be cut in halfarrow_forward40.) What was one negative consequence of the development of factories? a. People migrated to cities for factory jobs b. the first textile factory was built in England c. Diseases spread quickly through cramped factory neighborhoodsarrow_forward
- Question 17 The production period in which at least one input is fixed in quantity is the production run. long run. short run. planning horizon.arrow_forward1. True or False: explain why your answer is true or false a. We can expect the average cost curve of a software product downloadable in the internet to have no minimum point. b. Decreasing returns to scale implies that production exhibits economies of scale. c. Fixed costs tend to infinity when output is zero d. While the distance between the total and variable cost curves does not change, the distance between the average total cost and the average variable cost curves decreases with increasing output. e. In general, production can display diminishing returns in all variables but still display increasing returns to scale. Explain your answer.arrow_forwardOnly typed answer 15. Suppose q = f(L,K) =2L1/2 + 2K1/2 and the prices or labor and capital are w=$1, r=$1. What is the marginal cost in the long-run of the firm? a. MC(q)= 2q2 /3 b. MC(q)= q / 4 c. MC(q)= q8 / 2 d. MC(q)= 4q3 / 3 e. MC(q)= 8q3 / 3arrow_forward
- 3 examples of perfectly competitive markets and does these firms profit in long run or short runarrow_forwardQuestion 4 a. The following presents the costs and revenues for a firm. Calculate the marginal cost, marginal revenue and profit for each unit of production. How many units should the firm produce to maximise profit? b. Describe the relationship between the marginal product and the total product of a firm?arrow_forward4 The higher labour costs under skilled-based pay indicate that it may be a better fit to companies where _____________. labour costs are a small share of total costs labour costs are a large share of total costs employees lack motivation to increase their skills employees focus on seeking promotions to earn more pay the focus is on average performance rather than optimum performancearrow_forward
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