Do firms in a perfectly competitive market exhibit productive efficiency? O Productive efficiency, the economizing of society's scarce resources, is guaranteed for a perfectly competitive firm in the long run as well as in the short run. O Productive efficiency, when P=Minimum ATC, is guaranteed in the long run. It is possible that a firm will produce its output at a unit cost higher than the lowest unit cost possible in the short run. O Perfectly competitive firms will realize productive efficiency, the point where P=MC, in the long run but not in the short run. O Perfectly competitive firms will never reach productive efficiency in the long run or the short run. It is too easy for firms to enter and exit the marketplace for this condition ever to be realized.

Do firms in a perfectly competitive market exhibit productive efficiency? O Productive efficiency, the economizing of society's scarce resources, is guaranteed for a perfectly competitive firm in the long run as well as in the short run. O Productive efficiency, when P=Minimum ATC, is guaranteed in the long run. It is possible that a firm will produce its output at a unit cost higher than the lowest unit cost possible in the short run. O Perfectly competitive firms will realize productive efficiency, the point where P=MC, in the long run but not in the short run. O Perfectly competitive firms will never reach productive efficiency in the long run or the short run. It is too easy for firms to enter and exit the marketplace for this condition ever to be realized.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The optimal output rule for a perfectly competitive firm is to produce that quantity where A. P = MC in the long run, but in the short run to produce that quantity where MC = %3D ATC. O B. MC = ATC in the short run. C. P = MC no matter what the time period, provided that price is greater than average variable cost. D. P = MC no matter what the time period, provided that price is greater than %3D average total cost.
QUESTION 4 Which of the following distinguishes the short run from the long run in pure competition? O A. Firms can enter and exit the market O B. Firms attempt to maximize profits O C. Firms use the MR = MC rule to in the long run but not in the short O D. The quantity of labor hired in the long run but not in the short maximize profits in the short run but can vary in the long run but run run not in the long run not in the short run
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The firm depicted in Figure 7-10 is currently at point F producing 200 units of output per day. If it decides to increase its output level to 375 units, then it will Q 40 Figure 7-10 Dollars per Unit ATC LRATC ATC 200 375 Units of Output O adjust from point F to point G in the short run O be unable to adjust to point G in the short run because some inputs are fixed O be unable to adjust to point G in the long run because no inputs are fixed O be unable to adjust to point H in the short run because some inputs are fixed O adjust from point F to point H in the long run
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please also do the graph and the choices for the first blank is 2000, 7500, 8000, 10000 and the choices for the second blank is profit or economic loss thank you!!!
Imagine a firm in a competitive market comes up with a new production method, which halves its marginal cost at all levels of Q. Fixed costs are unaffected. Which of the following statements are true? O a. The firm's AC at all levels of Q would be lower. O b. The firm would extract an innovation rent from selling at the market price with lower costs. Oc. The firm's point of minimum AC would be a higher level of Q. O d. The innovation would immediately cause the market price to drop.
Tara sells her organic carrots in a perfectly competitive market for a price that is just higher than her minimum average variable cost (AVC) of production, but lower than her minimum average total cost (ATC) of production. Which of the following statements is then TRUE? O She is incurring a loss because price is less than ATc. O She can minimize her losses by shutting down her operations now. O Although she is currently incurring a loss, she could restore profitability by advertising her carrots. She is carning a profit because price is above AVC.
Which of the following is always true for the profit-maximizing firm in a perfectly competitive output market (as discussed in Chapter 8): O a. The economic profit at the profit maximizing output is negative. O b. The profit maximizing output is equal to the price given by the market. Oc. The economic profit at the profit maximizing output is positive. O d. At profit maximizing output, the slope of the total cost curve is equal to the slope of the total revenue curve. Say you have following Engle curve (which are the dashed lines) relating household income and pollution: FIGURE 1.-POLLUTION EMBODIED IN HOUSEHOLD CONSUMPTION: PM10 O 1984 2012 10 15 Average After-Tax Income (10,000 2002 $) Which of the following statements about this Engle curve is true in 2012? Select one: O a. Household pollution is a Giffen good. O b. Household pollution is a normal good. O c. Househald pollution is an inferior good. O d. Household pollution starts as an inferior good, and then becomes a normal good.…
Because perfectly competitive firms are price takers, a permanent increase in the market demand does not change the price of the product in either the short run or long run. O A. True O B. False
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