Suppose a perfectly competitive firm is incurring an economic loss. Consequently, the i) firm's average total cost exceeds the price. ii) firm's economic loss equals its total fixed cost. iii) firm cannot maximize profit. O A. i only. O B. i only. OC. i, ii, and ii. O D. i and ii only. O E. ii and iii.

Indicate whether you agree or disagree with the following statement. The marginal cost curve of any profit-maximizing firm is the firm's short-run supply curve. A. Disagree: The MC curve is the demand curve below minimum AVC. O B. Agree: The MC curve is the supply curve below minimum AVC. OC. Disagree: The MC curve is the demand curve above minimum AVC. D. Agree: The MC curve is the supply curve above minimum AVC. Ay quantity 7 units total cost is $194 and at quantity 8 units total cost is $208, what is the marginal cost at 8 unit? How you arrived to your solution? How you define marginal cost? 1 B I U S Ix Write your answer 1 B I U S Ix Write your answer = 글 EEI 1 At 5 units of production, if total variable cost is $75 and total fixed cost is $100, what is value of (a) total costs (b) average cost, (c) average variable cost and (d) average fixed costs? X₂ # 6 1 1 x² Insert Formula x₂ x²² Insert Formula

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With perfect competition, productive efficiency is generally attained in * the short run but not the long run. the long run but not the short run. O both the short run and the long run. O neither the short run nor the long run. O specific firms only.

In the long run, a perfectly competitive firm makes O A) either a positive economic profit or a normal profit. B) zero accounting profit. C) zero economic profit. D) negative economic profit, that is, an economic loss. E) a positive economic profit.

For a perfectly competitive industry, diminishing marginal returns O a. Diminishing marginal returns do not occur in perfectly competitive industries. O b. occur in both the short run and in the long run. occur only in the short run. O d. occur only in the long run. If a firm in a perfectly competitive industry lowers its price below the market price, its O a. profit will decrease. O b. sales will drop to zero. Oc. total revenue will increase. O d. demand curve will become downward sloping.

Assume you look at the graph of a perfectly competitive firm and its average total cost curve is entirely above the horizontal price line. In this case the firm is breaking even. O True O False

Which describes the firms supply curve for the short run with perfect competition? O The section of MC that is above AVC O The section of MC that is above ATC There is no supply curve since it depends on the slope of demand O The section of ATC to the right of its intersection with MC Which describes the long run equilibrium situation for a firm in perfect competition? O Demand is sloping downward and tangent to ATC Demand is horizontal and tangent to the bottom of ATC O Demand is tangent to AVC O There are positive economic profits to motivate firms to keep producing

In the short run, profits when a competitive firm shuts down are-$8200, and they are -$350 when the firm continues to produce. This firm will minimize losses in the short run by Choose one: A. either shutting down or continuing to produce. O B. continuing to produce. O C. shutting down.

Refer to Figure 8.1. The firm earns zero profit at what output? Consider the following diagram where a perfectly competitive firm faces a price of $40. O A. O. B. 34 and 79. OC. 54, O D. 67. E. 60. 44 40 31 30 20 10 4 10 20 30 40 50 34 Figure 8.1 60 70 67 79 MC AC AVC D 80 1 OUTPUT