74. In the video, when MC > MR, what action should the firm take to Maximize Profit. Select one: a. Increase Price b. Decrease Quantity c. Decrease Price d. Increase Quantity

If firms can easily enter and exit a​ market, then A. firms will earn zero economic profit in the short run. B. firms will produce at minimum average fixed cost in the long run. C. firms will produce where price is greater than marginal cost. D. firms will produce where price is greater than marginal revenue. E. firms will produce at minimum average cost in the long run.

Consider a firm in a perfectly competitive market. If this firm were to raise its price, its a. revenue would fall dramatically b. profits would increase as long as costs remained constant C. total costs would increase revenue would increase only if market demand were inelastic e. revenue would decrease only if market demand were elastic

If a firm charges a lower price they will have a lower profit margin but a higher profit; if a firm charges a higher price they will have a higher profit margin but a lower profit. Which of the following statements is accurate? A. The firm should charge a lower price for the higher profit. B. The firm should a higher price for the lower profit. C. The firm should charge a higher price for the higher profit margin. D. Whether the firm should charge a higher price or lower price indeterminate.

4. Hundreds of music stores have been closing in the face of stagnant demand for CDs because of new competition by online music vendors. a. How would price competition from these new sources cause a retail store to close? b. In the long run, will CDs remain a viable product? If so, how?

5.  Restaurants offer related but differentiated products to their consumers. In the long run, new restaurants enter the market and imitate the cuisine and atmosphere of successful competitors. How would you expect a restaurant to set its prices in the long run? Describe the relationship between price and average total cost. Does a restaurant earn economic profits?

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1.i)  Assuming you are the managing director of a firm that produces goods: A,B and C .The price elasticity of demand for A is 1.2, for B it is 1.oo and C is 0.75. It is known that he's firm is experiencing serious cash flow problems and you have to increase total revenue as soon as possible. If you were in a position to set the prices for these goods, what would be your pricing strategy for each product  ii)  price falls from N$ 16 to N$ 12 per bottle and demand rises from 200 to 300 per bottle.calculate the PED using midpoint formula Output prices average (total)cost Total cost marginal cost  Total profit/loss 10 10       -108 20 10     4 -48 30 10     5 3 40 10     6.20 40 50 10     8 60 60 10     10 60 2. i)  fill in the gaps ii)in which market structure doess Johnson Electronics (Pty)Ltd operate? iii)what level of output maximizes the firms profit

The figure below shows the industry demand curve and two possible industry supply curves in the perfectly competitive market for cheeseburgers. Price ($) 8 7 6 51 3 2 1 0 3 5 6 B S₂ A S₁ Select one: ● a. an excess supply of 6 cheeseburgers. b. an excess demand of 4 cheeseburgers. O c. an excess supply of 3 cheeseburgers. d. an excess demand of 6 cheeseburgers. 7 8 Cheeseburgers The market depicted in the figure above is initially at equilibrium at Point A. Suppose firms begin to exit the market, causing the supply curve to shift from S₁ to S₂. 9 10 11 12 Q If the price of cheeseburgers remains constant at $5.00, as a result of the decrease in supply there will be