11 This graph represents the cost and revenue curves of a firm in a perfectly competitive market. P3 P2 P1 Q1 Q2 Multiple Choice MC Q3 According to the graph shown, if a firm is producing at Q2, and it is identical to others in the market: profits are not being maximized. firms will enter this market. economic profits are zero. MR firms will leave this market ATC Q

11 This graph represents the cost and revenue curves of a firm in a perfectly competitive market. P3 P2 P1 Q1 Q2 Multiple Choice MC Q3 According to the graph shown, if a firm is producing at Q2, and it is identical to others in the market: profits are not being maximized. firms will enter this market. economic profits are zero. MR firms will leave this market ATC Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Assume a firm's marginal costs are increasing at its current level of output. If a firm's marginal revenue is less than the marginal cost of producing the last unit of output chosen by the firm, then: Profits can be increased if the firm decreases output. The firm is certainly earning an economic profit but not as much as it could be. Profits can be increased if the firm increases output. The firm's economic profit is necessarily less than zero.
Answer Box: q= 0,5,10,15,20
Question Suppose firm VACC produces in a (perfectly) competitive industry and has the cost function C = 300 + 2q^2 + 15q where q is its output level. a) What are VACC's marginal cost? b) How much output will VACC produce for a price P = 115? c) Compute VACC's profits. d) What is the difference between a firm's profits and producer surplus ? (Can you give an intuition for the concept of producer surplus ?) e) What is VACC's producer surplus ?
Q23
Suppose you are given the following information about a competitive firm: q = 20 units; TR = $100; ATC = $12; VC = $40; MC = $5. Given this: The firm should decrease its output in the short run and exit in the long run. The firm should increase its output in the short run, but exit the industry in the long run. The firm should continue to produce its current level of output in the short run, but should exit the industry in the long run. The firm should continue to produce its current level of output in the short and long run.
Which of the following is not a characteristic of a perfectly competitive market structure? O All firms sell identical products. O There are restrictions on exit of firms. O There are a very large number of firms that are small compared to the market. O There are no restrictions to entry by new firms.
Identification. Answer the following questions below. QUESTIONS: 1.) What are the ways to cut firm's production costs? 2.) What determines the firm's market power or competitive advantage? 3.) Graphically, in a purely competitive market, demand is equal to what? 4.) Using curves, graphically, a firm will shutdown if what? 5.) What is an output at which the firm makes a normal profit but noteconomic profit?
Easy econ, I will like. Thanks!
15 $40 $35 i of $30 ATC AVC $25 P = MR $20 $15 $10 $5 $0 20 40 60 80 100 120 Output (Q) The diagram above shows a Perfectly Competitive firm in the short-run. This firm will minimize its loss by choosing the Output (Q) level: Select one: а. 80 b. 60 С. 100 d. 40
The most general form of a social welfare function (SWF ) can be written as W = W(U1; ... ; UH). a. Explain the following properties that a SWF may satisfy: non paternalism, Pareto principle, anonymity (the names of the agents do not matter), and concavity (aversion to inequality). b. Consider two agents h = 1; 2 with utilities U1 and U2. Depict the social indifference curve of the utilitarian SWF in (U1; U2)-space. Which of the properties in part a does it satisfy? c. Depict the social indifference curves of the maxim in or Rawlins SWF. Contrast to the utilitarian SWF with respect to the aversion to inequality. Which properties does the Rawlins SWF satisfy? d. The Bernoulli-Nash social welfare function is given by the product of individual utilities. Discuss the distributional properties of the Bernoulli-Nash SWF.
If any of your answers are negative, put a minus sign in front of the number. You are given the following cost data for a perfectly competitive firm. Q TFC TVC 16 16 10 16 18 16 28 16 16 40 54 70 16 Calculate TC, MC, AFC, AVC, and ATC when Q = 2. TC = S , MC = S. AFC = $ AVC = $ ATC = $ If the market price is $15, how many units of output will this firm produce? units of output. Calculate the firm's profit: $ Will the firm operate or shut down in the short run? The firm In the long run, the firm should O A. expand because short-run profits are negative. O B. expand because short-run profits are positive. OC. shut down because short-run profits are positive. O D. neither expand nor shut down because short-run profits are positive. O E. shut down because short-run profits are negative.
MC P4 ATC P3 AVC P2- P1- AFC Output This graph shows the costs of a typical firm in a market that is in a long run equilibrium with free entry. What is the long run equilibrium price?