Question 42 If a perfectly competitive firm finds that price is less than average total cost, but greater than average vanrabie cost A. it should shut down in the short run, and remain shut down in the long run O B. it should shut down in the short run, but re-open in the long run O C.it should continue to operate in the short run, but shut down in the long run O D. it should continue to operate in both the short run and in the long run esponse

Question 42 If a perfectly competitive firm finds that price is less than average total cost, but greater than average vanrabie cost A. it should shut down in the short run, and remain shut down in the long run O B. it should shut down in the short run, but re-open in the long run O C.it should continue to operate in the short run, but shut down in the long run O D. it should continue to operate in both the short run and in the long run esponse

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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Question 7 If a perfectly competitive firm incurs an economic loss, it should: O Shut down if this loss exceeds fixed cost. O Try to raise its price. O Shut down in long run. O Shut down immediately.
red 1.00 pn ge Firm A operates in perfect competition, and the price the firm faces is greater than its average variable cost and less than its average total costs. If the firm does not expect price to change, firm A should: O a Shut down in the short run but operate in long run O b. Shut down in short run and in long run Oc. Operate in short run but shut down in long run Od. Shut down immediately Jump to O a. Increase production/output Ob. Shut down business Oc. Decrease production/output Od. Keep current production level Under perfect competition, if firm A's marginal revenue is greater than its marginal cost, what should firm A do to maximize its profit: AVAAN LUV1000 Evaluations Test 2-July 14th Which of the below is the difference between economic profit and accounting profit O a. Opportunity Cost O b. Revenue difference Oc: Explicit cost O d. Fixed cost Next page O e. Variable cost Next Activity Next Activity
MC LRAC MR 100 200 300 400 Quantity (pizzas per day) The figure above shows the marginal revenue and long-run cost curves for a perfectly competitive firm. ?Which of the following statements is TRUE اختر أحد الخيارات .a. The firm is producing at minimum long-run average cost O b. Over time, this firm will leave this industry O .c. The firm is earning positive economic profit O .d. The firm will eventually decrease its production O Price and costs (dollars per pizza)
Next question ice and cost (dolars per par) The graph shows the long-run situation facing a producer of running shoes. In the market for running shoes, all the firms face a similar demand curve and have similar cost curves 120- Draw a vertical arrow that shows the firm's markup at the profi-maximizing quantity. Label R. MC t004 What is a fim's markup? /ATC A fem'u markup is the amount by which exceeds OA price; average total cost 60 OB. price, marginal cost OC. average total cost marginal revenue OD. average total cost marginal cost 20- Describe the market of a firm in perfect competition MR O 25 7 100 1is e ths 200 zis Quantity (pain of shoes per week) A firm in perfect competition has OA a markup similar to a firm in monopolistic competition OB. no markup > Draw only the objects specfied in the question Oc. a negative markup O D. a markkup similar to a monopoly
58 When a perfectly competitive market is in long-run equilibrium, the firms supplying in that market are earning zero economic profit. E of Select one: OTrue OFalse
Apex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost schedule in the table below. Apex’s product sells for $200 per unit. Quantity (units) 0 1 2 3 4 5 6 7 8 9 10Total Variable Cost (TVC) 0 100 180 220 300 390 500 640 800 1000 1250Answer the following questions:a. What is the profit-maximizing level of output? Calculate Apex’s profit.b. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?c. If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?d. Comment on your answers to parts (2) and (3
If a profit-maximizing, competitive firm is producinga quantity at which marginal cost is between averagevariable cost and average total cost, it willa. keep producing in the short run but exit themarket in the long run.b. shut down in the short run but return toproduction in the long run.c. shut down in the short run and exit the market inthe long run.d. keep producing both in the short run and in thelong run.
Suppose the firm faces a price of $34, an average variable cost of $35, and has an average fixed cost of $5. In the short-run, the firm O A. should shut down. O B. may or may not produce. OC. may need to raise funds. OD. None of the above. 20 tv MacBook Air 80 DII F6 F7 F10 F3 F4 F5 F9 2# $ & 3 4 8 9 { E R Y P D F G H. K C V N M command op V
Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 10 cents, then this firm: 0.35 Marginal Cest 0.30 0.25 0.20 Average Tetal Cost 0.10 0.05 10 20 30 40 50 e 70 B0 90 Quantity oughnuts/ay O should shut down. O will earn an economic loss. O should produce 50 doughnuts. O should shut down in the long run.
D Question 6 Consider the graph below. Should this firm stay open or shut down in the short run and why? ATC MC ATC* A AVC* pe 10 Stay open because their loss from operating is greater in magnitude than their fixed costs Stay open because their loss from operating is less in magnitude than their fixed costs Shut down because their loss from operating is greater in magnitude than their fixed costs O Shut down because their loss from operating is less in magnitude than their fixed costs B AVC -MR