Which of the following is true about a perfectly competitive firm in the long run and in the short run? The supply curve in the short run is usually steeper than the supply curve in the long run. The demand curve in the short run is usually steeper than the marginal cost curve in the long run.   The supply curve in the short run is usually steeper than the average total cost curve in the long run.   The supply curve in the short run is usually flatter than the supply curve in the long run.

Assume the industry for flour tortillas in Denver is perfectly competitive. There are 200 firms. Seventy-five of the firms are “high-cost,” with short-run supply curves QHC = 5P. The other 125 are “low-cost,” with short-run supply curves QLC = 8P. Quantities are measured in dozens of tortillas and prices in dollars. Derive the short-run industry supply curve for tortillas QS. Assume the market demand curve for tortillas is given by QD = 10,000 − 625P. Find the market equilibrium price and quantity. At this price, how many dozens of tortillas are produced by the high- and low-cost firms, respectively? Determine total industry producer surplus at the equilibrium. Especially need the producer surplus.

Suppose you supply good X in a perfectly competitive market. To sell good X you rent a building for $30,000 per month and rent a machine for $20,000 per month. Those are your fixed costs. The variable cost per month is given in the table below: Quantity of good X Variable Cost (VC) Average Variable Cost (AVC) Average Total Cost (ATC) Marginal Cost (MC) 0 $0       1,000 $5,000       2,000 $8,000       3,000 $9,000       4,000 $14,000       5,000 $20,000       6,000 $33,000       7,000 $49,000       8,000 $72,000       9,000 $99,000       10,000 $150,000         a) Use blank spaces in the table above to calculate your average variable cost, average total cost, and marginal cost for each quantity of good X. b) There is free entry into this market, and anyone who enters will face the same costs as you do. If current market price of one unit of…

The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be less than average total cost.   The price of fertilizer must be equal to average variable cost.   The price of fertilizer must be less than marginal cost.       Assuming there is no change in either demand or the firm's cost curves, which of the following statements is true about what will happen in the long run? Check all that apply. Average total cost will decrease.   The quantity supplied by each firm will decrease.   The total quantity supplied to the market will decrease.   Marginal cost will decrease.   The price of fertilizer will increase.