Table 14-11 Suppose that a firm in a competitive market faces the following prices and costs: Price Quantity Total Cost $3 $5 $5 $5 1 $5 2 $8 $5 $12 $17 $23 3 $5 4 $5 Refer to Table 14-11. If the firm is producing 2 units of output, it should fewer units of output because its marginal revenue is less than its marginal cost. produce fewer units of output because its marginal revenue is greater than its marginal cost. produce more units of output because its marginal revenue is greater than its marginal cost. produce more units of output because its marginal revenue is less than its marginal cost.

1) If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue: 2) A firm that is motivated by self interest should 3) If price is above the equilibrium level, competition among sellers to reduce the resulting 4) Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both Camille's and Julia's to 5) Since their introduction, prices of DVD players have fallen and the quantity purchased has increased. This statement 6) In a market economy the distribution of output will be determined primarily by 7) In a competitive market economy firms will select the least-cost production technique because 8) Suppose that the price of peanuts falls from $3 to $2 per bushel and that, as a result, the total revenue received by peanut…

Problem #1: Assume that the following marginal costs exist in catfish production: 17 Quantity Produced (units per day) Marginal Cost (per unit) 10 11 12 13 14 15 16 $4 6 8 10 12 14 16 18 (a) Graph the MC curve. (b) Use the data on market demand below and graph the demand and MR curves on the same graph. Quantity demanded (units per day) 10 Price (per unit) 11 12 13 14 15 16 17 $25 24 23 22 21 20 19 18 (c) At what rate of output is MR = MC?

Complete the table below to answer questions 46. and 47.: Price Quantity Cost $18 16 14 12 10 8 642 012345678 Total Revenue Marginal Revenue Marginal $0 X $2.00 $16 $16 2.50 28 12 3.00 3.50 4.00 4.50 5.00 5.50 6.00 What is the profit-maximizing number of units to produce? What is the profit-maximizing price? 46 46. a. 2 b. 4 c. 6 d. 8 47. a. $14 b. $10 c. $6 d. $4

Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

3 Suppose an industry consists of 100 firms with identical cost structures (represented by the "typical individual firm" in the figure below). The price is $10. Price/Cost ($) 60 50 40 40 30 20 20 10 0 10 20 MC 30 30 40 40 Quantity ATC AVC 50 60 Instructions: Round your answers to the nearest whole number. The typical firm's output at the equilibrium price is units. The market output at the equilibrium price is units.

If the price is P, the firm in a perfectly competitive market is making a profit when producing the profit maximizing quantity Q1. Why would this situation lead to new entrants? Why would this increase in the number of firms competing in the market lead this firm to reduce output to Q (depicted in the right panel)? INDUSTRY S S¹ FIRM Costs - Revenue MC ATC K P P AR = MR ــة p1 Q Q¹ Use the editor to format your answer Output