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: OA. increase price. OB. increase output. OC. change nothing. O D. decrease output.
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- 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 O A. increase price. OB. increase output. OC. change nothing. O D. decrease output.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.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; $19.50
- 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 TRConsider 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
- Zoe's Bakery operates in a perfectly competitive industry. The variable costs at Zoe's Bakery increase, so all the cost curves shift leftward. The demand for Zoe's pastries does not change, nor does the firm shut down. Hence, Zoe's Bakery will its price and its level of production. O A. raise; increase OB. decrease; increase OC. raise; decrease D. not change; decreaseWhen price and marginal cost are equal for a perfectly competitive firm, the firm is O earning negative economic profit. maximizing economic profit. O maximizing total revenue. O minimizing average total cost.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; $240
- 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.A competitive firm has a total cost is given by: TC = 0.2q² + 12q + 200. If the market price is $60. What is the firm short run supply curve? a. q = 2.5P - 30 O b. P = 0.2q2 + 12 c. q = 0.4P + 12 O d. P = 0.2q + 12 Clear my choiceFigure 14-13 Suppose a firm in a competitive industry has the following cost curves: 10 9- 8 7. 6 اکیه 3.5 2 1- Price 1 2 3 4 MC 5 6 7 8 ATC AVC Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? ◆a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry. b. Nothing. The price is consistent with zero economic profits, so there is no incentive for firms to enter or exit the industry. ● C. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. d. Because the price is below the firm's average variable costs, the firms will shut down. 45