Refer to Figure 3 in Question 29. In response to the situation represented by the figure, assuming all firms in the market have the same costs and demand, we would expect O new firms to enter the market. O some of the firms that are currently in the market to exit. O this firm's profit to move from its current value toward a positive value. O None of the above are correct.

Refer to Figure 3 in Question 29. In response to the situation represented by the figure, assuming all firms in the market have the same costs and demand, we would expect O new firms to enter the market. O some of the firms that are currently in the market to exit. O this firm's profit to move from its current value toward a positive value. O None of the above are correct.

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

Please help im begging
Perfect competition is great for consumers, but not for producers. Present a perfect competition equilibriumusing the average cost and marginal cost curve framework used in class, and explain using words why thisequilibrium is good for consumers but not for firms. Then, assume the firm innovates in a way that gives thefirm market power and provides the firm with an economic profit. In a second diagram, show the situationfor this firm after the innovation. Use your results to explain using words why free market capitalism tendsto provide an improving living standard for consumers over time.
7. A car manufacturer builds both left-hand and right-hand drive cars. It estimates that its costs and the demand faced in each of these respective markets can be modelled by the functions below P1 = 520 – 3Q1 P, = 720 – 4Q2 - TC = 100Q1 + 120Q2 + 4Q1Q2 What is the maximum profit the firm could make? O 24300 O 24800 25300 25800 26500 O0000
the long-run, firms in perfect competition and monopolistic competition charge a price that is equal to average total cost (P = ATC). Select one: O a. Therefore, firms in both industries make zero profit in the long run O b. But only firms in perfectly competitive industry generate excess capacity in the long run. O c. Therefore, firms in both industries are efficient in the long run. O d. Therefore, firms in both industries are efficient in the long run. Next page Australian Institute of Business & Management trading as King's Own Institute ABN: 72 132 629 979 CRICOS
Pls help with below homework, pls solve all parts
Suppose solar panel manufacturing is an industry subject to significant economies of scale, and there are currently three solar panel manufacturers all with identical costs. If the demand for solar panels is 5 times the quantity produced at the bottom of the long-run average cost curve, which of the following is most likely to happen to the solar panel manufacturing industry in the long run? O The number of solar panel manufacturers will increase O The price of solar panels will increase O The fixed costs of manufacturing solar panels will increase The quantity supplied of solar panels will decrease
QUESTION 1 Camille is a co-owner of a small bakery with her grandmother. She is aware that their bakery is operating in a perfectly competitive market. Recently, she received an offer to work as a full-time accountant at a large company who offered her a higher salary to what she earns at the bakery. Which of the following statements is true? O Camille should not accept the job as an accountant because she would be leaving her grandmother. O Camille should compare only her revenue and explicit costs as an accountant to decide whether she will accept the job or not. O The value of Camille's work at the bakery is considered as her explicit cost if she decided to accept the job as an accountant. O If Camille experiences a negative economic profit at the bakery, then the accounting profit must be less than the implicit costs. Even if Camille experiences a positive economic profit at the bakery, she should definitely still leave and accept a higher-paying job.
A firm is a price-taker in the market for quesadillas. Their cost function is C(q) = 100 + 2g + q?. The current price is 10. Is the market in long-run equilibrium? O a. Yes, and new firms will enter. O b. Yes, but the price will drop. Oc. No, and new firms will enter. O d. No, and some existing firms will exit. Clear my choice A person consumes good X and Y. X is an inferior good but not a Giffen good. Which of the following can be true? O a. Ex.p. = -0.8, €xp. = 0.9, exI = -0.1, sx = 0.5, €y = 2.1 O b. Ex.p. = -1.2, ex.p, = 0.2, €x,1 = 1, Sx = 0.2, €y1 = 2.1 O c. Exp. = 0.2, ex.p. = 0.2, Ex.I = -0.5, sSx = 0.2, €y1 = 1 O d. Ex.p. = -0.4, €x.p. = 0.2, ex.I = 1, Sx = 0.2, €y,1 = 1 Clear my choice
MC and MR Table 2.1: information Quantity MR MC 1 $8.00 $6.00 $8.00 $7.00 $8.00 $8.00 $8.00 $9.00 $8.00 $10.00 Refer to Table 2.1. At an output level of 3 units, this competitive firm should production -in order to maximize profits. O change O No answer text provided. ONo ansvwer text provided O not change
ume the pizza market is a perfectly competitive constant cost industry, and all firms have identical homogenous firms). The market demand and market supply functions for this perfectly competit stry are given below. L 0 1 2 3 4 5 6 7 8 9 q=TP 0 10 20 30 40 50 60 70 80 90 TC 100 205 2.45 280 340 430 545 720 930 1190 P = 30.5-.005Q P = 1.7+.003Q TFC TVC 100 0 100 105 20.50 10.50 100 145 12.25 7.25 100 180 9.33 6.00 100 240 8.50 6.00 100 330 8.60 6.60 100 445 9.08 7.42 100 620 10.29 8.86 100 830 11.63 10.38 100 1090 13.22 12.11 ATC AVC MC 10.50 4.60 3.50 6.00 9.00 11.5 17.50 21.00 26.00
According to the survival principle, only firms that markets. O maximize profits O minimize costs O vertically integrate O maximize revenues survive in highly competitive
1) Briefly explain how the total revenue for a profit-seeking film is determined 2)Briefly explain what is meant by the term "fixed costs" and provide three examples of same. What determines a firm's level of fixed costs? 3)Contrast the rold of fixed costs and variable costs in economic decisions about future prodiction 4)Briefly compare and contrast the perceived demand curve for a monopolitically competitive firm and a perfectly competitive firm. 5)Briefly explain what quantity a profit maximizing monopolistic competitor will seek. Why not this type of competitive frim is productively efficient?