Homework Answers
Due to presence of HOMEWORKLIB POLICY, I am answering one question.
Explanation: Under economies of scale, per unit costs fall as MC fall during production.
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TR MR MC Profit 0 $10 2 3 4 5 6 PTC $5 $9 $5 $5 $12 $5 $15 $5 $19 $5 $24 $5 $30 $5 $45 Look at the above table....
TR MR MC Profit 0 $10 2 3 4 5 6 PTC $5 $9 $5 $5 $12 $5 $15 $5 $19 $5 $24 $5 $30 $5 $45 Look at the above table. Based on these numbers, the marginal cost, MC, for producing six units, quantity, Q. level 6, is equal to: $6,00 $3.00 $1.00 $7.00 La company, which is perfectly competitive, will respond to losses by In the short run; reducing production or shutting down In the short run; increasing...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not likely earn an economic profit in the long run. shut down in the short run if price is less than average variable cost. all of the above. QUESTION 6 A monopolistic competitive firm is inefficient because the firm: earns positive economic profit in the long run. is producing at an output corresponding to the condition that marginal cost equals price. is not maximizing its...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity...
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity of output, K is the quantity of capital and L is the quantity of labor. If capital is fixed at 10 units in the short run then the short-run production function is: Q=10KL b. Q=50KL? Q=10L? d. 0=50L Q=500KL 8. For a linear total cost function: a. MC will be downward sloping b. MC = AVC c. AVC is upward sloping and linear d....
term2_Exam.pdl 5. (20 points)The market for candy is perfectly competitive, and the current market price of...
term2_Exam.pdl 5. (20 points)The market for candy is perfectly competitive, and the current market price of a candy is $16. Suppose the firm's short run marginal cost of production is MC-49 and the long run marginal cost of production is MC-2q. a. What is the amount of output the firm will produce in the short run? b. Suppose the short run variable cost is VC=154 and there is no fixed cost, will the firm shun down in the short run?...
MC 5 ATC Price and costs (cents) 3 N 0 8 16 24 32 40 48...
MC 5 ATC Price and costs (cents) 3 N 0 8 16 24 32 40 48 56 64 Quantity (pages per hour) Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 2 cents per page. With no change in demand and technology, in the long run, the price will remain unchanged. rise to 5 cents per page. rise to 4 cents per page. fall to 1 cent per page.
12. Learning by doing doctrine suggests that: a. MC shifts upward as current output increases b....
12. Learning by doing doctrine suggests that: a. MC shifts upward as current output increases b. an increase in this period's output will cause future periods' long-run average cost curves to be lower c. The long-run average cost curve to increase at a smaller output d. the Law of Diminishing Returns to be violated e. none of the above 13. If given quantities of soap and shampoo can be produced together at a lower total cost than they could be...
Which of the following is true with respect to a perfectly competitive firm? It will make...
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 1 1 1 ! сл 8 10 13 17 Q Use figure 2, which depicts the cost curves of a perfectly competitive firm to answer the following a)(3 points) When the market prices is $8, what is the firm's short run profit maximizing output? b) (3 points)At a market price of $8, is the firm earning positive, negative, or zero economic profit? c) (3...
11. In drawing an isoquant curve, what is measured on the axes? a. the prices of...
11. In drawing an isoquant curve, what is measured on the axes? a. the prices of the inputs b. price and output c. the physical quantities of the two inputs d. expenditure on the two inputs e none of the above 12. Learning by doing doctrine suggests that: a. MC shifts upward as current output increases b. an increase in this period's output will cause future periods' long-run average cost curves to be lower c. The long-run average cost curve...
TR MR MC Profit 0 $10 2 3 4 5 6 PTC $5 $9 $5 $5 $12 $5 $15 $5 $19 $5 $24 $5 $30 $5 $45 Look at the above table. Based on these numbers, the marginal cost, MC, for producing six units, quantity, Q. level 6, is equal to: $6,00 $3.00 $1.00 $7.00 La company, which is perfectly competitive, will respond to losses by In the short run; reducing production or shutting down In the short run; increasing...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
7. Assume that the long-run production function can be expressed as Q-SKL? Where Q is quantity of output, K is the quantity of capital and L is the quantity of labor. If capital is fixed at 10 units in the short run then the short-run production function is: Q=10KL b. Q=50KL? Q=10L? d. 0=50L Q=500KL 8. For a linear total cost function: a. MC will be downward sloping b. MC = AVC c. AVC is upward sloping and linear d....
term2_Exam.pdl 5. (20 points)The market for candy is perfectly competitive, and the current market price of a candy is $16. Suppose the firm's short run marginal cost of production is MC-49 and the long run marginal cost of production is MC-2q. a. What is the amount of output the firm will produce in the short run? b. Suppose the short run variable cost is VC=154 and there is no fixed cost, will the firm shun down in the short run?...
MC 5 ATC Price and costs (cents) 3 N 0 8 16 24 32 40 48 56 64 Quantity (pages per hour) Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 2 cents per page. With no change in demand and technology, in the long run, the price will remain unchanged. rise to 5 cents per page. rise to 4 cents per page. fall to 1 cent per page.
12. Learning by doing doctrine suggests that: a. MC shifts upward as current output increases b. an increase in this period's output will cause future periods' long-run average cost curves to be lower c. The long-run average cost curve to increase at a smaller output d. the Law of Diminishing Returns to be violated e. none of the above 13. If given quantities of soap and shampoo can be produced together at a lower total cost than they could be...
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 1 1 1 ! сл 8 10 13 17 Q Use figure 2, which depicts the cost curves of a perfectly competitive firm to answer the following a)(3 points) When the market prices is $8, what is the firm's short run profit maximizing output? b) (3 points)At a market price of $8, is the firm earning positive, negative, or zero economic profit? c) (3...
11. In drawing an isoquant curve, what is measured on the axes? a. the prices of the inputs b. price and output c. the physical quantities of the two inputs d. expenditure on the two inputs e none of the above 12. Learning by doing doctrine suggests that: a. MC shifts upward as current output increases b. an increase in this period's output will cause future periods' long-run average cost curves to be lower c. The long-run average cost curve...
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