Assume that the market for car washing is perfectly competitive. If a single firm washes 27 cars per week, a identical firms in the market, how many cars are getting washed weekly? a. 5400 O b. 2700 O c. it is impossible to say anything about the market output based on information about single firms. O d. 3240 e. less than 2700 because demand slopes down.
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- Assume that the market for house cleaning is perfectly competitive. If a single firm cleans 22 apartments per week, and there are 99 identical firms in the market, how many markets are getting cleaned weekly? O a less than 2178 because demand slopes down. O b.4356 Oc 2614 O d. 2178 O e. it is impossible to say anything about the market output based on information about single firms.Suppose that there are exactly 1000 firms in the short-run in the market for widget production. The market is perfectly comp below: 100 6 75 50 25 10 20 MC 5 b. 3000 O c. zero d. 5000 ATC AVC 80 100 123 140 Market demand for widgets is given by the following equation: Q-140,000-400P What is the long-run equilibrium profit level per firm? O a. 1500 quartSuppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.
- Use this graph to answer the following question: Average & Marginal Costs OET 120 001 06 08 -Marginal Cost 09 Average Total Cost Average Variable Cost 3. L 9 S Quantity ot 6 8 Assume that this firm is a price taker and the price is $60. What is the profit maximizing quantity produced by this firm? O $9 per unit O7 units O9 units O 8 units.ll touch LTE 10:05 PM O 9 37% O A docs.google.com In a perfectly competitive market, what happens to a firm's profit-maximizing level of output if the price of the product falls? * Because the firm maximizes profit by setting marginal revenue equal to O marginal cost, an increase in the price of the product will reduce the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will not affect the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will reduce the firm's profit-maximizing level of output. Because the firm maximizes profit by setting marginal revenue equal to marginal cost, a decline in the price of the product will increase the firm's profit-maximizing level of output.Listen Price and cost ATC AVC 20 MR N 12 15 14 11 15 18 750 1100 1350 1,800 Quantity The current price is $20. In the short-run, the firm represented in the diagram would exit the market if price fell below: 1,800 uuanuy 750 1,100 1,350 The current price is $20. In the short-run, the firm repres exit the market if price fell below: O 15 O 14 O11 5.
- A strawberry farmer, operating ih a perfectly competitive market, is currently producing 99 packs of strawberries. The market price for a pack of strawberries is $6 a pack. The marginal cost of producing one more pack for the farmer is $5. What is the marginal revenue the farmer will receive from producing his 100th pack of strawberries? (Hint: If you aren't sure what marginal revenue means, look it up before choosing an answer) O $0.06 O $6 O $1 O $100Suppose a science museum charges $15 for admission, and each day 200 adults visit the museum. Suppose the museum directors cannot change the price they charge, but they know that for every $1000 a day spent on advertising they can increase demand by 50 tickets. The cost of operating the museum for a day is $2,000. Which of the following advertising choices should they make to maximize profits? O Spend $100O0 a day on advertising O Spend $2000 a day on advertising O Spend no money on advertising O Spend $3000 a day on advertisingFirm A is in food industry, and firm A makes total revenue of $2000 this month. In order to support the production, the owner had to give up his part-time job, from which he was paid $500/month. The total explicit costs to support this company is $850/month. Please calculate the Economic Profit of firm A. O a. 1150 O b. 1500 O c. 650 O d. 2000 O e 1350
- The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. Price ($/bushel) 60 50 40 30 20 10 0 0 ΤΑ 10 20 30 40 50 60 70 80 Quantity (bushels/month) Select one: O A. 50 bushels. C If mushrooms sell for $10 per bushel, and Moe chooses the profit-maximizing quantity, he will gather: B. 30 bushels. O C. 20 bushels. O D. zero bushels.Mo increase production from 5 O True O False 6 fire engines because the dominates in this scenario. True or False: If alternatively Mo's HookNLadder were a competitive firm and $160,000 were the market price for an engine, decreasing its price from $160,000 to $120,000 would result in a decrease in the production quantity, but an increase in total revenue.Paolo's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Paolo produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Paolo faces. As you can see, to sell the additional engine, Paolo must lower his price from $75,000 to $50,000 per fire engine. Note that while Paolo gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $50,000 rather than $75,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. PRICE (Thousands of dollars per fire engine) 250 225 200 175 150 125 100 75 50 25 thinin 0 3 4 5 6 7 QUANTITY (Fire engines) a Demand Revenue…