If a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm _____.   Question 15 options: a must decrease output to increase profit b must increase output to increase profit c is maximizing profit d must shut-down to increase profit

Q: A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has…

A: The minimum efficient scale of production is the level of output at which the long-run average total…

Q: The long-run cost function of the representative firm in an industry is C(q)=q3/3-2q2 +10q and the…

A: * SOLUTION :-

Q: 32. In the short run a purely competitive seller will close down if: a. It cannot produce at an…

A: When revenue from selling a product is insufficient to pay variable production expenses, a business…

Q: 27- Under perfect competition, entry of new firms into the market in the long run tends to: Select…

A: As new firms enter the market, it leads to an increase in the production of the existing good in the…

Q: A competitive firm would benefit from charging a price below the market price because the firm would…

A: When talking about perfectly competitive market, it is the market with many buyers and many sellers.

Q: Profit-maximizing firms enter a competitive market when existing firms in that market have Group of…

A: The structure of a market where there tend to exist various producers that compete with each other…

Q: Zero economic profit earned by firms in a perfectly competitive market indicates that  A firms will…

A: In a competitive market there are large number of firms producing similar and identical products…

Q: When the marginal-cost curve lies below the marginal-revenue curve     a. the firm cannot improve…

A: Marginal cost is the price at which the production of a firm takes place for a commodity which…

Q: A firm faces the following average revenue (demand) curve: P(Q) = 240 - 0.04 Q where Q is the weekly…

A: Profit maximizing quantity is such quantity where marginal revenue is equal to marginal cost.

Q: Table 14-4 The following table presents cost and revenue information for a firm operating in a…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: 56. Agriculture in india is mostly characterized by perfectly competitive market why?

A: Agricultural economics is a branch of economics that focuses on using economic theory to improve…

Q: The slow recovery from the recession of 2007–2009 forced many firms to develop new competitive…

A: The slow recovery from the recession of 2007-2009 disincentivized firms to lend from financial…

Q: 28.The following information is available for a company that operates in a perfectly competitive…

A: Here, the given table shows the cost and output information of a firm in the perfectly competitive…

Q: how the short-run impact of a $2 per unit excise tax imposed on firms in a competitive industry.…

A: Perfect competition:A market structure with an infinite number of buyers and sellers is known as…

Q: Why does a firm in a competitive industry charge the market price? Group of answer choices If a…

A: Perfect competition is a market structure in which there are a great number of firms and buyers of…

Q: 7..Comment on the following statement about perfect competition: A firm that has incurred a lot of…

A: When we consider the short-run market then there will be both fixed costs as well as variable costs…

Q: Firms must typically purchase inputs from suppliers to produce output. What effect might suppliers…

A: (Q)Firms must typically purchase inputs from suppliers to produce output. What effect might…

Q: An industry consists of 50 firms with equal sales. What is the HHI? a. 50 b. 200 c. 400 d. 800 e.…

A: The Herfindahl-Hirschman Index is an index that is used to measure the size of the firms in relation…

Q: Consider a competitive firm with a short-run cost function C(q) = 100q−q2 + 1/5q3 +450. (a)…

A: Answer to the three sub parts are as follows :

Q: The slope of the total revenue curve for a competitive firm is equal to __________, which is equal…

A: While a firm in a perfectly competitive market has no impact on its cost, it decides the result it…

Q: Refer to Exhibit 22-2. If the firm produces the quantity of output at which marginal revenue (MR)…

A: Answer: Profit-maximization/loss minimization: a firm maximizes its profit where the marginal…

Q: Company Alpha produces its product in a perfectly competitive market that is in long-run…

A: In a perfectly competitive market there are large number of firms producing similar and identical…

Q: TC=100+20q+q2 Mc=20+2q a) Is this firm operating in the short or long run? How do you know? b) If…

A: Note : Since the question has multiple sub parts , the first three sub parts will be solved at a…

Q: For a firm operating in a competitive industry, which of the following statements is not correct?…

A: Perfectly competitive market is such a market where there are very large number of buyers and…

Q: Discuss why falling oil prices are bad for US oil production companies. Explain (using economic…

A: fall in the oil prices:   fall in the oil prices has been due to fall in the global demand for oil…

Q: 32. A decrease in the price of a fixed factor of production decreases total cost and A. decreases…

A: (32) A decrease in the price of a fixed factor of production decreases total cost and A. decreases…

Q: 2) Ann McCutcheon is hired as a consultant to a firm producing ball bearings. This firm sells in two…

A: We have two different markets with the given cost function.

Q: Flag 1. A company faces TC = y2 + 12 and market demand y = 24 – p. a) What is the firm’s profit?,…

A: The total cost function consists of the fixed cost as well as the variable cost. The marginal cost…

Q: In a perfectly competitive market, industry demand is given by Q = 1000 – 20P. The typical firm’s…

A: Answer to the question is as follows :

Q: Healthy Morning” is a firm that produces breakfast cereal and suppose breakfast cereal is a…

A: The price of a product or service multiplied by the quantity equals total revenue. The marginal…

Q: Each firm in a perfectly competitive industry has total costs c = q2 – n + 16. Market demand is Q =…

A: Given Information Market Demand Q = 24 – 2p.total cost  "C" =  q2 – n + 16.

Q: 12. A dairy farmer is operating in a perfectly competitive market. The market price for milk is…

A: "A firm in a perfectly competitive market will produce at a point where the market price equates the…

Q: You are the manager of a small U.S. firm that sells nails in a competitive U.S. market (the nails…

A: Demand refers to the quantity demand of a good at a given price.  Demand depends on the price of the…

Q: 3. What is the maximum profit for the price(s)you listed for Question 12?

A: The profit maximizing firm produces and sell output at the point where the marginal revenue is equal…

Q: utput? If only one competitive firm receives a specific subsidy (negative tax) of s, how should that…

A: An ad valorem tax is a tax which is being based upon the assessed value of an item like a real…