Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC= $12.00; AVC = $8.00; MC = $12.00; MR = $10.00. The firm should Select one: hand written plz OA. increase price. OB. increase output. OC. change nothing. OD. decrease output.
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- MC АТС $25.00 AVC $19.50 -- $15.00 $12.50 - - 30 40 50 60 Output (Q) For the firm shown in the diagram above, its Long Run Supply Curve is its curve for any price greater than ATC; $19.50 MC; $12.50 AVC; $12.50 MC; $19.50Consider a competitive firm that is operating in the short run. The firm is maximizing profits and just breaking even. Assume it has to pay a monthly license fee of $100 and that the fee must be paid for as long as the firm operates. What should the firm do to maximize profits in the short run if the price of the license fee increases from $100 to $150? a. increase price Ob. increase output c. reduce output O d. not change output e. both a and cA perfectly competitive firm produces at an output at which marginal revenue is less than marginal cost. To maximize profit, the firm should: O produce more. O maintain its level of output. O produce less. www. If the price of output decreases, the firm's optimal level of output will increase (Click to select) increase *** stay the same decrease Saved K
- 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.MENY Refer to the Figure under perfect competition. If P represents the market price for a price-taking firm, what is the best economic advice for the firm in the short run? Price P 0 MC ATC AVC -P-MR-AR 9 Quantity (firm) O Continue operating because average total cost exceeds price. O Shut down immediately. Continue operating because price exceeds average variable cost. Continue operating because average variable cost exceeds price.Consider the total revenue (TR), total cost (TC), and total variable cost (TVC) curves shown at right. In the short run, this perfectly competitive firm OA. should exit because it is losing money. B. should shut down because its profit is zero. OC. should increase the price. OD. could shut down. OE. is breaking even. Price (5) Quantity TC TVC TR
- Suppose the firm in the figure above is perfectly competitive. Its long run price is equal to 5 МС АТС MC 1 MR 10 20 30 40 50 60 Quantity (units per day) O A. $1. OB. $2. OC. $3. D. more than $3. 3. 2. Price and costs (dollars per unit)Which of the following is an expression of profit for a perfectly competitive firm? Profit for a perfectly competitive firm can be expressed as ⒸA. Profit=(PxQ)-(TCxQ), where P is price, Q is output, and TC is total cost. OB. Profit=P-MC, where P is price and MC is marginal cost. OC. Profit=PxQ, where is price and Q is output. O D. Profit=P-ATC, where P is price and ATC is average total cost. O E. Profit= (P-ATC) XQ, where P is price, Q is output, and ATC is average total cost.For a burger seller Marginal, average variable and average total cost curves are attached below: 1. what is profit maximizing level of output and profit of this firm if the price of burger is $3.50? 2. Below what price will this firm shut down in the short run? 3. If the price was $4.50 ehat would be the firm's profit?
- 1)A perfectly competitive firm produces 1000 units of burger in the long run. Themarginal revenue is RM6. Calculate this firm's marginal cost, average fixed cost, longrun average cost, total cost, total revenue, and total profit.Consider the following figure for a perfectly competitive firm in the short run. Price, Costs MC ATC AVC 30 26 20 12 ------ 10 ..---- .---- 8 12 21 30 32 40 Output Suppose the industry price is $20. If the firm produces its profit-maximizing or loss-minimizing output, then it will make a equal to Loss; $420 Profit ; $240 Loss ; $180 Loss; $240Refer to Figure 12-10. If the price is less than $6, the firm should short run and in the long run. OA. shut down; exit the market OB. continue operating, stay in the market and expand OC. continue operating; exit the market OD. exit the market; exit the market in the Revenue and cost (dollars per unit) $20 11 10 6 0 J 200 250 300 ATC AVC MR Quantity