27- A firm in a perfectly competitive market that is incurring a loss, will still maximize profits (even if they are negative) by continuing to produce under which of the following conditions: price must cover both fixed and variable costs price is at least equal to the variable cost price can cover fixed costs only price is less than variable cost 28 Firms will enter a perfectly competitive industry when existing firms are operating at a loss anytime regardless of the profit of existing firms existing firms are earning a positive profit whenever the moon is full and the NFC East plays real football O

27- A firm in a perfectly competitive market that is incurring a loss, will still maximize profits (even if they are negative) by continuing to produce under which of the following conditions: price must cover both fixed and variable costs price is at least equal to the variable cost price can cover fixed costs only price is less than variable cost 28 Firms will enter a perfectly competitive industry when existing firms are operating at a loss anytime regardless of the profit of existing firms existing firms are earning a positive profit whenever the moon is full and the NFC East plays real football O

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 6E

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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?
The table shown displays the total costs for various levels of output for a firm operating in a perfectly competitive market. Price $50 $50 $50 $50 $50 $56 When one unit is produced exceed O marginal costs, marginal revenue, more O marginal revenue; marginal costs more O marginal revenue, marginal costs; less Omarginal costs, marginal revenue, less and the fem should produce Quantity 0 1 2 3 4 15 TC $10.00 $20.00 $2750 $77 50 $147.50 $250 00
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; -$9000.
MICROECONOMICS - PROBLEM SET 4 MARKET STRUCTURE 1. The inverse demand curve for the product of a perfectly competi- tive industry is given by P = 160-0.5Q, where P is the price per unit and Q is the quantity. The short-run industry inverse supply curve (for a given number of firms) is P = 100+ 0.25Q. (a) Calculate the equilibrium price and quantity, and hence cal- culate the consumers' surplus and producers' surplus. A tax of 15 per unit sold is now imposed on every unit sold. Calculate the new short-run equilibrium price (including tax) and quantity, and hence calculate the revenue raised. What is the deadweight loss (excess burden) of the tax?
Question 15 of 20 (Figure: Determining Industry Cost Characteristics) Short-run and long-run supply curves with short-run market equilibrium at points A and B are shown in the graph. We can conclude that the industry in the graph is a(n) O Macmillan Learning Macmillan Learning Price ($) 1,000 900 V 5000 800 700 600 400 300 200 100 o Price ( 4 0 100 200 5000 400 300 O 200 100 0 300 400 500 Output 10100 O O A SA 600 700 800 900 100 200 300 400 500 600 Output O increasing cost industry. constant cost industry. O market in long-term disequilibrium. O decreasing cost industry. SLR 700 800 900
Refer to the graph shown, which depicts a perfectly competitive firm that maximizes profit. If the prevailing market price is $4: Price 8765432-0 1 ง C MC ATC 0 20 40 60 80 100 120 Output per day Show Transcribed Text LRAC Group of answer choices Economic profits are $500 and the quantity supplied from the firm is 200 units per day. Economic profits are $0 and the quantity supplied from the firm is 100 units per day. Economic profits are $100 and the quantity supplied from the firm is 100 units per day. Economic profits are -$100 and the quantity supplied from the firm is 80 units per day.
53 ces Suppose an industry consists of 150 firms with identical cost structures (represented by the "typical individual firm" in the figure below). The price is $18. Price/Cost $60 $50 $40 $30 $20 $10 0 10 20 30 MC Quantity 40 ATC AVC 50 60 Instructions: Enter your answers as a whole number. a. The firm output quantity at the equilibrium price is: b. The market output quantity at the equilibrium price is: units. units. Save & Exit Submit
onsider the table below and assume the market price is $35 per unit. Totalproduct Totalfixed cost TotalVariablecost 0 150 0 1 150 50 2 150 75 3 150 112.4 4 150 150 5 150 200 6 150 270 7 150 360 8 150 475 9 150 620 10 150 800 Now assume there are 600 identical firms in this industry, that is, there are 600 firms, each of which has the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows: Price Quantitydemanded $20 6,800 30 5,975 45 5,500 60 5,125 75 4,500 95 4,200 120 3,600 150 2,400 In equilibrium each firm will realize: Multiple Choice an economic profit of $155. a loss of $45. an economic profit of $35. a loss of $135.
MC we e-MR-D 01214 6 telof wh Piease refer to the above graph of a perfectly competitive firm's cost and revenue curves the price of thin product is $7, what is the proft maximizing level of output? unts the price of this product is $7, what is the frm's total revenue when it maximires proft? S It the price of this product is $7, what is the fiem's total cost when it maximizes profir?S It the price of this product is $7, what is the fims total variable cost when it maximizes proft?S What is the fiem's tatal fed oost? the price of this product is $7, what is the fm's proft or loss when t maximizes pro? of loss, write answer as a regative number wth minius sgn)5
s12.5 MC АТС $10.0 P-MR 8.0 $7.5 $5.0 $2.5 - $0.0 0 10 20 30 40 50 60 70 80 90 100110120130 Quantity When maximizing profit, the perfectly competitive firm depicted in the graph will earn per-unit profit approximately equal to: $2.5 $7.5 $2.10 $10 Cost, Price
8$12.5 $10.0 8.0 $7.5 $5.0 $2.5 $0.0 0 10 20 30 40 50 60 70 80 90 100110120130 Quantity $10 When maximizing profit, the perfectly competitive firm depicted in the graph will earn per-unit profit approximately equal to: $7.5 MC ATC O $2.5 O $2.10 P-MR
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