Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 9, Problem 6MC
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Managerial Economics: A Problem Solving Approach
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- 60. In a perfectly competitive market, which of the following will increase the economic profit the firms make in the short run? A. an increase in labor costs B. a decrease in market demand C. an increase in market demand D. an increase in the number of firmsarrow_forwardThe market for paperback detective novels is perfectly competitive. Market Demand is given by Q=106-7P. Market Supply is given by P=5+2Q. What is market QUANTITY? Enter a number only. Remember, fractions of goods are possible.arrow_forwardA company in a competitive market has fixed costs of $200. A total cost curve is given in the table below. Given the data, answer the questions below. Output: 10 20 30 40 50 60 Total Cost:300 420 560 720 900 1100 a. Given the price is $20, what is the profit-maximizing output? What is the profit? b. Given the price is $20, what will happen in the long run? c. At the long-run equilibrium, what will the price be in the long run? What is the profit-maximizing output? What is the profit of the company? d. Prepare marginal cost schedule cost schedule for the firm.arrow_forward
- The short-run market demand and supply for Kente cloth are expressed as follows: Demand:P=40-0.25Q Supply: P=5+0.05Q Marginal cost: -20+4Q a) Find short run level of output.arrow_forwardGraph represents the cost structure of an individual firm in a perfectly competitive market. If the price decreases to $25, find the profit maximizing output of firm A by explaining the profit maximizing condition for a perfectly competitive firm. Calculate total revenue, total cost, total variable cost and the profit of the firm at the profit maximizing output.arrow_forwardAn increase in the market supply of a product sold in a perfectly competitive market will have what impact on the price charged by an individual firm in that market? a. the price charged by an individual firm will deacrease b. the price charged by an individual firm will increase c. it will have no impact on the price charged by an individual firmarrow_forward
- At a market price of $21 a toy, what quantity does the firm produce in the short run and does the firm make a positive economic profit, a zero economic profit, or an economic loss?arrow_forward(Table: Costs for Alina's Apple Pies) Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly competitive market and the market price for a pie is $38, what profit (or loss) will this firm earn? a profit of $200 a loss of $30 T a loss of $200 a profit of $80 This is what I think the answerisarrow_forward(10) In long-run equilibrium in a perfectly competitive market, which of the following is true? (a) Average cost equals marginal cost (b)Profit = 0 (C)Price equals marginal cost (d)all of the abovearrow_forward
- A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What is the average revenue, and how many units were sold?arrow_forward5. A perfectly competitive firm faces a _______ demand curve for its product. a. vertical b. unit elastic c. inelastic, but not perfectly inelastic d. elastic, but not perfectly elastic e. horizontal The market demand in a competitive market is ______ . a. horizontal b. upward sloping c. vertical d. downward slopingarrow_forwardLaura is operating a perfectly competitive firm. She sells her goods at $10 per unit. What is her marginal revenue? $10 More than $10 Less than $10 There is not enough information to answer this questionarrow_forward
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