Please answer An increasing-cost industry is so named because of the positive slope of which curve?A. Each firm's short-run average cost curveB. Each firm's long-run average cost curveC. Each firm's long-run marginal cost curveD. The industry's long-run supply curveO E. Each firm's short-run marginal cost curve

Long run average total cost curve is a curve that shows a relationship between Average total cost…

n increasing-cost industry is so named because of the positive slope of which DA. Each firm's short-run average cost curve D B. Each firm's long-run average cost curve DC. Each firm's long-run marginal cost curve D D. The industry's long-run supply curve DE. Each firm's short-run marginal cost curve

n increasing-cost industry is so named because of the positive slope of which DA. Each firm's short-run average cost curve D B. Each firm's long-run average cost curve DC. Each firm's long-run marginal cost curve D D. The industry's long-run supply curve DE. Each firm's short-run marginal cost curve

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 10SQP

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The following table provides information about long-run average cost curve of a firm: Quantity LRAC 100 50 200 43 300 39 400 39 500 44 600 52 a. For output levels between 300 and 400, the firm has constant returns to scale. b. This cost structure is an example of natural monopoly. c. For output levels greater than 400, the firm has economies of scale. d. For the first 300 units of output, this firm has diseconomies of scale.
A perfectly competitive firm can produce its current level of output at an average total cost of $10 and a marginal cost of $8. If the market price of the product is currently $8, what should the firm do? a. The answer depends upon the relationship between price and average variable cost. The firm should shut down if average variable cost is $8 or greater, but the firm should continue to produce the current level of output if average variable cost is less than $8. O b. The firm should definitely shut down since average total cost exceeds price. Oc. The firm should continue to produce, but they should decrease production in order to increase profit. O d. The firm should increase production in order to increase profit. 0= Icon Key mentMain.do?takeAssignmentSessionLocator=assignment-take,53ef7eec-ce82-423c-a5cf-a72630d672e7#
When can firms decide to shutdown the business? a. When average fixed cost is greater than total revenue b. When average variable cost is greater than the marginal revenue c. When the price does not cover average variable cost d. When marginal revenue is decreasing Firms experience a break even point when a. Total revenue is greater than total cost b. Marginal cost os equal to marginal revenue c. Average fixed cost is equal to average variable cost d. Marginal revenue is zero
I need help with econ multiple hw questions asap! 60) When a firm in a competitive market produces 15 units of output, it has a marginal revenue of $8.00. What would be the firm’s total revenue when it produces 8 units of output? A. $64.00 B. $48.00 C. $6.00 D. $4.80 59) The competitive firm’s long-run supply curve is that portion of the marginal-cost curve that lies above which average cost? A. sunk cost B. total cost C. variable cost D. fixed cost
E. Roughly Me Refer to the accompanying graph to answer the following two questions. Price and Cost $20.00 $15.00 $8.00 MC ATC AVC Quantity 290 tohi oviliisqno a. b. 11.This firm's short-run supply curve is represented by the average total cost curve above $20. marginal cost (MC) curve above $15. C. MC curve above $8. d. MC curve above $20. e. average variable cost curve above $15. 12. A firm would produce in the long run only if the market price is a. at or above $20. b. above $15. c. between $15 and $20. d. above $8. e. between $8 and $15
The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. O The price of fertilizer must be less than marginal cost. O The price of fertilizer must be less than average total cost. O The price of fertilizer must be equal to average variable cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. Firm Market Demand ATC -- ---- P. TAyd MC Quantity Quantity If firms in the market are producing output but are currently making economic losses, illustrates the present situation for the typical firm in the market, and S ▼ indicates the corresponding supply curve. Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. O The…
21. The long-run average cost curve for an industry is represented in the following graph. Add short-run average cost curves and short-run marginal cost curves for three firms in this industry, with one firm producing an output of 10,000 units, one firm producing an out put of 20,000, and one firm producing an out- put of 30,000. Label these as Scale 1, Scale 2, and Scale 3, respec- tively. What is likely to happen to the scale of each of these three firms in the long run? Cost per| unit ($) LRAC 10,000 20,000 30,000 Units of output
The industry in the figure below consists of many firms with identical cost structures, and the industry experiences constant scale. Consider a change in demand from D₁ to D2, which increases price from $20 to $30 in the short run. Price $50 $40 $30 $20 $10 0 10 20 Market 30 D₁ 40 Quantity S₁ D₂ 50 60 70 Tools LRS O S₂ Instructions: Enter your answers as a whole number. a. Draw the new short-run market supply curve that will occur in response to the increase in demand and increase in price. Instructions: Use the tool provided 'S2' and be sure your supply curve includes the new equilibrium price and quantity. b. Draw the long-run supply curve. Instructions: Use the tool provided 'LRS' and plot only the endpoints over the entire range of output (0-60). The new equilibrium price is $ 20 and the new equilibrium quantity is 40.
The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive market. Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below. 48 44- MC ATC 40- 36- 32- D'=MR 28 24- AVC 20- 16- 12- AFC 4 - 1 2 3 7 10 11 Quantity %24
What is the law of diminishing returns? Why does marginal product eventuallydiminish?b. Explain the relationship between marginal product and average product. Lin’s makes fortune cookies. Anyone can make and sell fortune cookies, so thereare dozens of producers. All fortune cookies are the same and buyers and sellersknow this fact. In what type of market does Lin’s operate? What determines theprice of fortune cookies? What determines Lin’s marginal revenue?d. What is the shape of the AFC curve and why does it have this shape?
In the Widgit industry, fixed costs are more than marginal cost. Also, Average Total Cost increases after a company produces 1,000 Widgits. What must be true about the marginal cost of the 1001 Widgit? O a. The marginal cost of the 1001 Widgit is LESS than the marginal cost of the 1000 widgit O b. The marginal cost of the 1001 Widgit is the SAME as the marginal cost of the 1000 Widgit O c. None of these are correct O d. The marginal cost of the 1001 Widgit is MORE than the marginal cost of the 1000 widgit O e. The 1001 widgit could cost more or less or the same as the 1000 widgit
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.