Ceteris paribus, if a firm in a perfectly competitive industry raises its price above market price, Group of answer choices a. total revenue for the firm will increase. b. sales will drop
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Ceteris paribus, if a firm in a
Group of answer choices
a. total revenue for the firm will increase.
b. sales will drop to zero.
c.demand
d. profit will increase.
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- You're a milk company in a highly competitive market. The market price of hay and alfalfa, your cows' favorite food, has recently dropped. Which of the following is likely true? A.The price elasticity of demand for your milk decreases B. You can charge a higher price for milk C. Your company's demand curve has fallen D. Your shut down point becomes largerYour company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product?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
- MC ATC MR Quantity The diagram portrays Multiple Choice the equillibrium position of a competitive firm in the long run. a competitive firm that is realizing an economic profit the loss-minimizing position of a competitive finm in the short run: a competitive firm that should shut down in the short run, PriceEdward Scahill produces table lamps in the perfectly competitive desk lamp market. The equilibrium price of lamps is $50. a. Fill in the blanks in the table for total revenue and marginal revenue, as represented by (i and ii). (Enter your responses as integers.) (1) Total revenue is $. (ii) Marginal revenue is $. b. How many table lamps will Edward produce to maximize profit? lamps. c. If next week the equilibrium price of desk lamps drops to $30, should Edward shut down? O A. Yes because he is not covering his fixed costs. OB. Yes because price is less than ATC. OC. No because price is greater than minimum AVC. D. No because he is covering his fixed costs and some of his AVC. Output per Total Costs Marginal week Cost 0 1 2 3 4 5 6 7 8 9 $120 150 170 185 195 215 260 310 385 495 $30 20 15 10 20 45 50 75 110 Total Marginal Revenue Revenue SO 50 100 (1) 200 250 300 350 400 450 $50 50 50 (if) 50 50 50 50 50Which of the below changes in demand in the long-run would lead to entry in the perfectly competitive market for wheat? a. a decrease in the number of buyers b. a decrease in buyers' expected price of wheat c. an increase in income (wheat is a normal good) d. both a) and b) would lead to long-run entry in perfect competition
- ATC Price MC AVC 8. 7- 9. 10 11 12 13 Quantity The graph shows the cost curves of a firm in a competitive industry. The market price is $5. In the short run, the firm should Choose one: * A produce the output at which MR = MC and earn a profit. B. produce the output at which MR = MC and suffer a loss. O C. shut down the operation. 9 D. There is not enough information to answer the question. 1st attemptBelow is a graphical illustration of a typical firm operating in a monopolistically competitive industry: P5 P4 P3 P2 P1 H Q1 Q2 Q3 Refer to the graph above to answe question. Which of the following statements is correct? ATC SPart A. When the demand curve is given by P1 = $30, and the firm behaves optimally in the short run, what is the total revenue? A. $ 900 B. $1350 C. $800 D. $2400 Part B. When the demand curve is given by P1 = $30, how much profit is this producer earning? A. $ 500 B. $ 800 C. $ 1200 D. $ 1600 Part C. Does the graph above represent the firm’s short run equilibrium or long run equilibrium, for a given price? A. short run B. long run C. short run or long run D. neither short run nor long run
- If Fatimah's Bee Farm is a perfectly competitive firm, the demand for Fatimah's honey has? 1. Zero elasticity 2. infinite elasticity 3. elasticity equal to the price of apples 4. unitary elasticityConsider a firm in a perfectly competitive market. If this firm were to raise its price, its a. revenue would fall dramatically b. profits would increase as long as costs remained constant C. total costs would increase revenue would increase only if market demand were inelastic e. revenue would decrease only if market demand were elasticRefer to the graph that depicts Joe’s family restaurant in a perfectly competitive market. If price is P3, the profit-maximizing output Multiple Choice A. the firm is earning a positive profit. B. the firm has zero profits. C. the firm is earning a loss then a profit. D. the firm is suffering a loss.