31O g. All of the above.O h. None of the above.QUESTION 6In a competitive industry, each firm has a cost function C(x) = x² +4 (for a given set of input prices). Demand for the industry's output isx = 120-p. The (long run) equilibrium number of firms isO a. 120O b.58C. 46O d. 34O e. 29O f. 12O g. 2O h. None of the aboveQUESTION 7Aggregate producer surplus in an industry can be measured along the market supply curve in the short run but not in the long run.O TrueO FalseSave All Ana47°F Sunny

Given long run cost function: C=x2+4 We find long run average cost function: Average cost=Total…

QUESTION 6 In a competitive industry, each firm has a cost function C(x) = x² + 4 (for a given set of input prices). Demand for the industry's output is x = 120 - p. The (long run) equilibrium number of firms is O a. 120 O b.58 O . 46 O d.34 O e. 29 O f. 12 O g. 2 O h. None of the above

QUESTION 6 In a competitive industry, each firm has a cost function C(x) = x² + 4 (for a given set of input prices). Demand for the industry's output is x = 120 - p. The (long run) equilibrium number of firms is O a. 120 O b.58 O . 46 O d.34 O e. 29 O f. 12 O g. 2 O h. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?

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✓ Question Completion Status: A non- competitive firm's demand curve is P = 10-4Q. So its MR is O 5-2Q O 10-40 10-8Q 05-Q QUESTION 3 For a non-competitive firm with a demand curve P = 1800-2Q and marginal costs of MC = $200, how much is the equilibrium quantity (Q)? 360 400 560 620 QUESTION 4 For a non-competitive firm with a demand curve P = 1800-2Q and marginal costs of MC = $200, how much is the equilibrium price (P*)? O $500 (4750 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ar
Consider the following graph of the average and marginal cost functions for a firm in a perfectly competitive market. At a price of P=10: (iii) the marginal cost of production is . (iv) the firm's total profit is . (v) the firm's variable profit is .
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The table below describes a firm that sells output in a perfectly competitive market. Note the second column describes total costs. O $8 O $12 O $6 Output O $4 0 1 2 3 4 5 Which of the following market prices would cause the firm's profit-maximizing output level to be equal to 5? 6 Total Cost (in dollars) $3 $9 $14 $18 $23 $30 $40 4
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
Figure A Competitive Firm1.2 MC ATC AVC Given Pl =$7.00 P2 $8.50 P3 =$9.20 QI=100.00 A P3 B P2 P1 MR Quantity Q1 Refer to Figure A Competitive Firm1.2. At an output level of Q1, the average fixed cost is about O $0.70 O No answer text provided. O No answer text provided. O S0.80 %24
Figure A Competitive Firm1.2 MC ATC Given P1 =$7.00 P2 = S8.50 P3 = SS.80 Ql = 120.00 AVC A P3 P2 P1 MR C Quantity Q1 Refer to Figure A Competitive Firm1.2. At an output level of Q1, the average fixed cost is about O $0.50 O $0.30 O No answer text provided. No answer text provided. %24
1
Price and costs (dollars) 20 10 L O 10 20 MC O always. ATC MR 40 30 Quantity (per day) The figure above shows a perfectly competitive firm. In the short run, the firm will shut down only if the AVC of producing 10 units is more than $20. only if the AVC curve reaches its minimum before 10 units are produced. only if the AVC of producing 10 units is less than $20.
44 40 36 32 28 24 20 16 12 8 4 O a firm in a perfectly competitive market $ (c) 16 (d) 23 (e) 25 0 14 {}} 4 11 8 14 10 34 11 12 14 41 12 TH 14 D 35. What is the long-run equilibrium quantity? (a) 10 (b) 14 12 14 11 240 DET WHATH 114 IN M 421 31 ME ara 110 MI LENECE www. M IP 11 MC HE 16 20 24 31 EN MEN 28 M il ATC --AVC F 32 Q