13. The figure below represents the marginal cost of a small firm in a perfectly competitive market. The firm's fixed cost is $100. If the current market price is p = $20, and the firm is producing the quantity that maximizes profit, then the firm's total profit will be a. $100 b. $170 MC c. $200 d. $370 30 e. $400 20 10 10 20 30
13. The figure below represents the marginal cost of a small firm in a perfectly competitive market. The firm's fixed cost is $100. If the current market price is p = $20, and the firm is producing the quantity that maximizes profit, then the firm's total profit will be a. $100 b. $170 MC c. $200 d. $370 30 e. $400 20 10 10 20 30
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
I NEED 8 PLEASE AND 13 THEY ARE VERY IMPORTANT AND I AM STUCK PLEASE
Transcribed Image Text:9. There are currently 60 perfectly competitive firms producing output q. The cost function of each firm is C =
10 + 3q2. The demand in this market is Qº = 1200 – 40p. Use this information to answer questions #9-
10. What is the short-run market equilibrium price in this market?
a. $0.55
b. $3
c. $4
d. $12
e. $24
10. Based on the information from the previous questions, is this market currently in a long-run equilibrium?
a. Yes, there will be no entry or exit in the long-run.
b. Yes, firms will enter the market in the long-run.
c. Yes, firms will exit the market in the long-run.
d. No, firms will exit the market in the long-run.
e. No, firms will enter the market in the long-run.
11. A firm in a perfectly competitive market uses capital and labor to produce output q. The firm's production
function is F(L, K) = L0.5 K0.5. The prices of labor and capital are w = 4 and r = 1. The firm chooses the
inputs in order to minimize its costs. Use this information to answer questions #11-12. What is the optimal
mix of labor and capital?
a. L=4K
b. K= 4L
с.
K = 2L
d. L= 2K
e. L= K
12. Using the information about the firm in the previous question, how much labor and capital will it hire if the
production target is q
4?
a. L= 2 and K
= 8
b. L = 4 and K = 4
c. L = 8 and K = 2
d. L = 1 and K
= 16
е.
L = 2 and K = 2
13. The figure below represents the marginal cost of a small firm in a perfectly competitive market. The firm's
fixed cost is $100. If the current market price is p
maximizes profit, then the firm's total profit will be
$20, and the firm is producing the quantity that
a. $100
b. $170
c. $200
d. $370
MC
30
e. $400
20
10
10
20
30
Transcribed Image Text:82
66
50
38
32
24
16
D
8.
16 22 25 34
41 Q
Use the graph above to answer questions #5-7 about the market for jeans.
5. If the market for jeans is in equilibrium, consumer surplus is
a. $968
b. $836
c. $726
d. $484
e. $242
6. If the government institutes a price floor at P=$50 there will be
a. Excess Demand = 22 units
b. Excess Demand = 16 units
c. Excess Supply = 34 units
d. Excess Supply = 18 units
e. Excess Supply = 6 units
7. A price floor at P=$50 will result in a loss of economics surplus, DWL, of at least
a. $400
b. $256
c. $208
d. $64
e. $54
8. Adel, Beyoncé, and Christina Aguilera derive utility from consuming goods x and y according to the
following utility functions:
Adel: u^(x, y) = 4x + y
Beyoncé: u* (x, y) = 5x + y
Christina: u (x, y) = 3x + y
They purchase x and y in the same market, so they all pay the same prices, p, and py. They all have the
same income, I, and make purchases that maximize their utility. Adel is currently purchasing 30 units of x
and 5 units of y. We can therefore conclude that
a. Beyoncé is using all her money to buy x, while Christina is using all her money to buy y.
b. Beyoncé is using all her money to buy y, while Christina is using all her money to buy x.
c. Both Beyoncé and Christina are using all their money to buy x.
d. Both Beyoncé and Christina are using all their money to buy y.
e. Both Beyoncé and Christina are purchasing the same basket as Adel.
3
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education