44403632282420161284Oa firm in a perfectly competitive market$(c) 16(d) 23(e) 25014{}}41181410341112144112TH14D35. What is the long-run equilibrium quantity?(a) 10(b) 14121411240DETWHATH114INM42131MEara110MILENECEwww.MIP11MCHE16 20 2431EN MEN28MilATC--AVCF32Q

A competitive market charges the minimum possible price because the consumers in this market are…

44 40 36 32 28 24 20 16 12 8 4 0 0 a firm in a perfectly competitive market TH 4 8 IN 18 P 11 14 CAR 11 1 101 35. What is the long-run equilibrium quantity? (a) 10 (b) 14 (c) 16 (d) 23 O(e) 25 M IN 12 . 10 V M KNOPEAwww " E 14 SEM CHL " 11. P 11 3ITM 18 1 461 • M 11 WILL IM 1 1. K IN . www. A M IN 14 11 www. 16 WWW 4 A www. H CH 18 ape MALI *** 20 BW MC 19 B www. www ||||||| ATC 24 28 ▸ -AVC 32 C

44 40 36 32 28 24 20 16 12 8 4 0 0 a firm in a perfectly competitive market TH 4 8 IN 18 P 11 14 CAR 11 1 101 35. What is the long-run equilibrium quantity? (a) 10 (b) 14 (c) 16 (d) 23 O(e) 25 M IN 12 . 10 V M KNOPEAwww " E 14 SEM CHL " 11. P 11 3ITM 18 1 461 • M 11 WILL IM 1 1. K IN . www. A M IN 14 11 www. 16 WWW 4 A www. H CH 18 ape MALI *** 20 BW MC 19 B www. www ||||||| ATC 24 28 ▸ -AVC 32 C

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 7SCQ: If new technology in a perfectly competitive market brings about a substantial reduction in costs of...

See similar textbooks

Similar questions

Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?
Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
When is an industry productively efficient? R OOD F4 A. When firms in that industry produce the amount of output that intersects with the minimum of their ATC curves ubmission B. When the short-run equilibrium market price is above the long-run equilibrium market price ← PREVIOUS or dº APR 20 % 5 C. When the market price for the good or service in that industry is the same as marginal revenue D. When the average total cost curve intersects the marginal revenue curve at its lowest point T F5 6 MacBook Air F6 Y & 7 F7 U stv * CO 8 A DII F8 - ( 9 DD F9 O 0 VIEW F10 P
An industry currently has 100 firms, each of whichhas fixed cost of $16 and average variable cost asfollows:Quantity Average Variable Cost1 $12 23 34 45 56 6a. Compute a firm’s marginal cost and average totalcost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How muchdoes each firm produce? What is the total quantitysupplied in the market?c. In the long run, firms can enter and exit themarket, and all entrants have the same costs asabove. As this market makes the transition to itslong-run equilibrium, will the price rise or fall?Will the quantity demanded rise or fall? Will thequantity supplied by each firm rise or fall? Explainyour answers.d. Graph the long-run supply curve for this market,with specific numbers on the axes as relevant.
p/costs 12 4 5 3 сл MC ATC MR In a perfectly competitive market, what output will this firm produce? 1 2 3
Use the graphs below to answer the following questions. $lb $/gal 25 25 MC ATC 20 20 15 p1 15 10 10 P2 D 2 4 6. 8 10 1 3 4 5 Millions of gal/week Thousands of gal/week What is the long-run equilibrium price in this market? Please enter your answers as whole numbers with no decimal places (ie. 5 or $5 not 5.00 or "Five dollars"). How many gallons per week will the individual firm produce to maximize profits in equilibrium? Please enter your answers as whole numbers with extra words (ie. 5000 not "5000 gallons/week" or "Five thousand" ). What is the individual firm's long run economic profit?
Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market. Output Fixed AFC Variable AVC Total ATC MC Cost Cost cost 1 $50 50/1=50 $30 30/1=30 30+50=80 80/1=80 NA 2 $50 50/2=25 $50 50/2=25 50+50=100 100/2=50 (100-80)/(2-1)=20 3 $50 50/3=16.67 $80 80/3=26.67 50+80=130 130/3=43.33 (130-100)/(3-2)=30 4 $50 50/4=12.50 $120 120/4=30 50+120=170 170/4=42.50 (170-130)/(4-3)=40 5 $50 50/5=10 $170 170/5=34 50+170=220 220/5=44 (220-170)/(5-4) =50 What can you expect from an industry in perfect competition in the long run? That is, what will the price be? What quantity will be produced? What will be the relation between marginal cost, average cost, and price?
25. This question refers to the figure below which shows the price, marginal cost, and average cost curves facing a perfectly competitive firm in the short run. What is the total daily revenue of the profit-maximising firm in the short run? Cost, price (Rand) a) b) c) P 20 12 8 0: R800 R2 000 R960 60 ВО 100 Output per day MC AC Price AVC
Use the information in the graphs below to answer the following questions SAb $/gal 25- S1 25 H MC ATC 20 20 15 15 P1 10 10 P2 5 4 6 8 10 2. Thousands of gal/week 1 3 Millions of gal/week What is the long-run equilibrium price in this market? Please enter your answers as whole numbers with and do not type out your answer in words (ie. $5 or $5.00 not "Five dollars"). How many gallons per week will the individual firm produce to maximize profits in equilibrium? Please enter your answers as whole numbers with no extra words (ie. 5000 not "5000 gallons/week"). What is the individual firm's long run economic profit?
Price nd cost d Refer to the diagram to the right which shows the cost and demand curves for a proft - maximizing tem in a perfectly competitive market. if the market price is $30 and the firm is producing output, what ia the amount of the fem's proft or lose? MC ATC A. koss of $1,080 AVC t 40.50 A36.00 OB prott of S1,440 OC. loss of $2.520 30.00 MR OD. profit of $1,300 22.00 20.00 130 180 240 Quarty
A market is in long-run equilibrium and firms in this market have identical cost structures suppose demand in this market decreases. Which of the folowing are coreet descriptors of what happens to tho individual firms and the whole market as the market fist leaves and then returns to long-run equilibrium? Instructions: You may select more than one answer cick the box with a check mark for correct answers and dick to empty the box for the wrong answers. 0 Market proe will decrease in the longrun. O Market quantity will remain the same in the long-run. O Individual firms' profit maximizing output will decrease in the long run. O Firms will exit the market inthe long run. O Individual firms' profit maximizing output wil decrease in the shon-nun. O Market quantity decrease in the long run. o Firms win enter into the market in the long run. O Market price wil decrease in the short-run. References eBook & Resources Leaming objective: 13-08 Calculato the Section Responding…
If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?