A purely competitive firm currently producing 35 units of output earns marginal revenues of $40 from each extra unit of output it sells. If it sells 40 units, then its total revenues would be $1,400. $1,200. $200. indeterminate based on the information given.
Q: 1. What is the cost of the basket in: a. 2011: b. 2012: 2. What is the CPI in:
A: This can be defined as a concept that shows the overall rise in the price of commodities and…
Q: 5. A C Where a group of potential attendees at an event is made up of one group who all want high…
A: Signaling:Signaling refers to actions or characteristics that convey information about an…
Q: This figure shows the marginal cost and marginal revenue curves for Beautiful Cars. Which of the…
A: Marginal revenue is revenue gained by selling additional unit of good.Marginal cost is rise in cost…
Q: An economic evaluation of the following mutually exclusive alternatives is being conducted. Since…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: In preparing their estimates of the stimulus package's effect on GDP, Obama administration…
A: The government purchases multiplier can be affected by a number of factors, including: The…
Q: In the graph below, the which variable is NOT held constant? [Select] The red, dashed line is the…
A: An indifference curve is a graph showing different bundles of goods between which a consumer is…
Q: Natale is a skilled theater artist. She is offered a job as a manager in a bank with an annual…
A: In this case, we have to discuss the term opportunity cost. Opportunity cost shows the forgone value…
Q: In the short-run, we assume that capital is a fixed input and labor is a variable input, so the firm…
A: Marginal product is the change in total product due to an additional labor hired. Marginal product…
Q: 3. The accompanying table shows the percentage of GDP accounted for by private sav- ings, investment…
A: Net capital inflow is the difference between the capital inflow and capital outflow.
Q: 8. Agreement and disagreement among economists Suppose that Charles, an economist from a research…
A: Charles and Dina differ on whether the government should bail out deep recessions. Charles argues…
Q: 11. Over the past year, there has been a sharp decrease in the price of oil. following could explain…
A: The price of oil, like any commodity, is determined by supply and demand dynamics. Factors that can…
Q: 2) Given the graph of the long run planning curve for a firm below, Price and cost (dollars) P…
A: The reason the LAC curve is frequently referred to as the planning curve is because a firm can…
Q: True or False: ALL buyers and sellers in a given market are satisfied with the current equilibrium…
A: Economics:It is a subject matter that focuses on the rational management of scarce resources that…
Q: Refer to Figure 16-5. In the dynamic model of AD- AS in the figure above, if the economy is at point…
A: The equilibrium occurs when the aggregate demand and aggregate supply are equal. The economy might…
Q: What are some of the new stimulative monetary policy tools that the Fed used during the 2007-2009…
A: The Federal Reserve, or the Fed, is the central banking system of the United States. It uses various…
Q: The graph shows the demand for and supply of potato chips. Draw a curve that shows the effect of a…
A: At the equilibrium price, the quantity demanded is equal to the quantity supplied.Equilibrium occurs…
Q: Kim has $24 per week in her entertainment budget. She splits her time between going to the movies…
A: The utility-maximizing choice between consumption items arises where the marginal utility per dollar…
Q: Harding Enterprises has developed a new product called the “Quest Simulator (QS)”. The market demand…
A: Market demand defines the total quantity of a good or service that all customers in a given market…
Q: Sarah is trying to decide how to divide her time between her job as a wedding photographer, which…
A: Diminishing marginal returns refers to the decrease in the incremental output or benefit derived…
Q: Given the following information, what adjustment would be needed to account for the difference in…
A: When comparing properties to determine the value of a subject property, adjustments may need to be…
Q: Peter's Pizza Shack knows that a 12 percent decrease in the price of their pizzas will result in a…
A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…
Q: The following graph shows the annual market for Michigan blueberries, which are sold in units of…
A: At Equilibrium Price, quantity demanded and quantity supplied of goods and services are equal. There…
Q: In a country a government chooses to increase the tax on gas for $0.20 per gallon. Though the price…
A: In a country a government chooses to increase the tax on gas for $0.20 per gallon. Though the price…
Q: Gross domestic product: O measures the value of the aggregate production of goods and services in a…
A: Gross Domestic Product:GDP is a measure that represents the total monetary value of all goods and…
Q: Which of the following is classified as a bank function? nstructions: In order to receive full…
A: A bank function is a role or service that a bank performs. Bank functions can be broadly divided…
Q: Price of bonds, P Corporate Aaa bonds m Quantity of Corporate bonds iven the market activity shown…
A: An instrument of indebtedness of the issuer of bonds to the holders of bonds is known as bonds. They…
Q: The table sets out the CPI for the United States and for four regions of the United States in May…
A: CPI is understood as an index that measure the monthly changes in prices paid by U.S. customers. It…
Q: Consider two economies - Avalon and Eternia. In Avalon, the central bank uses interest rates to…
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: B Qb (C) Qb-Qd Price (D) Qa P₁ Pa P₂ Po igure above shows a market with a negative externality. he…
A: The graph depicts that there is a negative externality in the production. The marginal social cost…
Q: Question 21 Technological improvements will: O leave the production possibilities curve unchanged.…
A: PPC stands for the production possibility curve. It depicts the graphical representation of all…
Q: Achieving the tangency condition to maximize utility: BL Diagram 1 IC₁ X Example 1: U(X,Y)=…
A: Utility maximization problem: With the given prices and the income, a consumer chooses his…
Q: For the production function Q = L² +0.5K², returns to scale: O is constant O Can be increasing,…
A: Return to Scale:Return to scale refers to the effect on output or production when all inputs are…
Q: The data in the table below are the monthly average variable costs (AVC), average total costs (ATC),…
A: Perfect competition: A firm in the competitive market is a price taker because it has large number…
Q: What is the PW of the Investment option 3?
A: Present Worth (PW) is a financial concept that deals with the time value of money. It is calculated…
Q: the AD-AS model, if there's a sudden increase in consumer confidence leading to more spending, what…
A: This can be defined as a concept that shows the total demand for the products and the services in a…
Q: If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the…
A: Higher tariffs, often used as a protective measure to shield domestic industries from foreign…
Q: a. Compare the elasticity of a monopolistic competitor's demand with that of a pure competitor and a…
A: In a marketing scenario known as "pure competition," numerous sellers offer comparable goods at…
Q: Price Level SRAS1 x Ye AD Real National Output If the economy is at the full employment equilibrium…
A: Financial market:It is a market where there is buying and selling of financial securities. It…
Q: Boyd has the following utility function: U=100B √C where B represents books and C represents audio…
A: The total utility refers to the total satisfaction that a consumer can get from consuming goods and…
Q: Year Nominal GDP (in $billion) Real GDP (in $billion) GDP Deflator (2002 = 100) Population (in…
A: Nominal GDP is the total value of goods and services produced in a nation measured in current market…
Q: Aggregate saving (in billions SA 205 -100 -200 S 400 800 900 Aggregate income (in billions) Y
A: Keynesianism has made strides in its ability to solve economic downturns by government intervention,…
Q: A price tag states that an item’s MRSP is $100 but that its markdown is $40. This is an effective…
A: In the world of retail, pricing strategies play a crucial role in influencing consumer behavior. One…
Q: Antonio's Fire Engines should not increase production from eight to nine fire engines because the…
A: Total Revenue is defined as the total earnings that the consumer earns drom the production and sale…
Q: The graph's yield curve represents yield curve. Based on the yield curve shown, which of the…
A: The Treasury yield curve or yield curve is the graph depicting the yields of fixed-income Treasury…
Q: Consider the Solow model with Cobb-Douglas production function with productivity parameter A…
A: The marginal product of labor determines the change in the output due to 1 unit increase of labor…
Q: If an earthquake destroys some of the capital stock, the neoclassical theory of distribution…
A: The neoclassical theory of distribution is a theory which defines how income is distributed among…
Q: If TC = 98 + 15Q + 6Q2 , what is the marginal cost at when Q=7? Enter as a value.
A: Total cost function: We need to find the marginal cost when Q is 7. Marginal cost is the rate of…
Q: Alice and Bob are each confronted with the choice between: A. Purchasing a set of headphones at the…
A: The individualsIndividuals make decisions based on the resources available to them known as consumer…
Q: A dairy business jointly produces butter and cheese from a "fixed" amount of milk as shown in the…
A: Opportunity cost is the overall value of a good lost due to the producer choosing to produce another…
Q: Investment Goods B D C Consumption Goods E Figure 17.5 A movement from point C to point B in Figure…
A: Opportunity cost will be determined in the number of units of the second commodity forgone for one…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Refer to Figure 12-10. If the price is less than $6, the firm should short run and in the long run. OA. shut down; exit the market OB. continue operating, stay in the market and expand OC. continue operating; exit the market OD. exit the market; exit the market in the Revenue and cost (dollars per unit) $20 11 10 6 0 J 200 250 300 ATC AVC MR QuantityA firm in a perfectly competitive market has an average total cost of $40 for the 100th good it sells. Its fixed costs are $100. The average total cost of the 101th good is $41. If the market price is $50 this firm should O sell only 100 goods because the marginal cost of the 101th exceeds marginal revenue. O sell 101 because price is greater than average total costs. O sell 101 goods because it adds to profits. O sell 101 goods because its fixed costs are so low. 55. つ25 MacBook Air 000 esc F1 F2 F3 F4 F5 F7 23 $ & 1 3 7 Q W E R Y tab A S F G caps lock C V B shift altQ23 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.
- Price and costs (dollars) 20 16 12 8 4 0 5 10 MC ATC 20 15 Quantity (per day) The figure above shows short-run cost curves for a perfectly competitive firm. If the price of the product is $8, in the short run the firm will Select one: O a. incur an economic loss O b. earn an economic profit O c. earn a normal profit O d. None of the provided answers is correct because more information is needed to determine the firm's profit or lossCompact discs are sold in a perfectly competitive market. The current market price of compact discs is $15. If at the current level of production of compact docs you calculate the marginal cost to your company is also $15, and that AVC is rising, in the short run your company should OA produce fewer compact discs OB. continue producing the current level of compact discs OC. produce more compact discs OD. raise the price of its compact discs *Bookmarks Profiles Tab Window Help Table 12-1 Quantity 0 100 200 300 400 500 600 #3 Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Total Cost (dollars) $1,000 1,360 1,560 1,960 2,760 E 51) Refer to Table 12-1. If the market price of each camera case is $8, what is the firm's total revenue when the profit-maximizing quantity is found at the output where MR = MC? B) $3,200 C) $4,000 D) $4,800 A) $2,400 Page Ref: 401-402 D ture.com/courses/2244593/files/144593507?module_item_id=37898795 $ 4 4,000 5,800 R FI Variable Cost (dollars) $0 360 560 960 1,760 3,000 4,800 % 5 T MacBook Pro G ^ 6 Y 87 & H U * 8 J - ( 9 O 49) V 51) ) 0 K L P
- Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC= $12.00; AVC = $8.00; MC = $12.00; MR = $10.00. The firm should Select one: hand written plz O A. increase price. OB. increase output. OC. change nothing. O D. decrease output.The owner of Tie-Dyed T-shirts, a perfectly competitive firm, has hired you to give him some economic advice. He has told you that the market price for his shirts is $12 and that he is currently producing 200 shirts at an AVC of $10 and an ATC of $14. What do you recommend he do in the short run? O shut down continue at current capacity O operate O exit O expandand cost 20 15 14 11 MC ATC 750 1.100 1.350 1,800 AVC MR Quantity Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens in the diagram above? None of the curves shifts; only the fixed cost curve, which is not shown here, is affected. All the cost curves shift upward. Only the average variable cost and average total cost curves shift upward: marginal cost is not affected. Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected.
- Consider a perfectly competitive firm with the following marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves. АТС $ MC AVC 150 130 125 110 100 90 50 100 150 200 300 325 Using these curves, the firm faces fixed costs of: O A. $4000, O B. $2000, O C. $20, O D. $200, and average fixed costs when 200 units are produced is16 $20 $18 MC АТС i of $16 P = MR $14 $12 AVC $10 $8 $6 $4 $2 $0 200 400 600 800 1,000 1,200 Output (Q) The diagram above shows a Perfectly Competitive firm in the short-run. At the profit maximizing Output (Q) level, the firm will earn a Total Profit of: Select one: а. $1,000 b. $1,600 с. $3,200 d. $2,000A perfectly competitive firm that makes car batteries has total fixed costs of $10,000 per month. The market price at which it can sell its output is $100 per battery. The firm's minimum AVC Is $105 per battery. The firm is currently producing 500 batteries a month (the output level at which MR=MC). This firm is making a O loss, shut down O profit, shut down O profit: increase O loss; increase and should. production