Question
In: Economics
1.If the market price is $10, what is the firm’s short-run economic profit? a. $9 b....
1.If the market price is $10, what is the firm’s short-run economic profit?
a. $9 b. $15 c. $30 d. $50
2.If the market price is $6, what is the firm’s short-run economic profit?
a. $0 b. $12 c. $15 d. $18
3.If the market price is $10, what is the firm’s total cost?
a. $15 b. $30 c. $35 d. $50
4.If the market price is $10, what is the firm’s total revenue?
a. $15 b. $30 c. $35 d. $50
5.The firm will earn zero economic profit if the market price is
a. $0. b. $6. c. $7. d. $10.
6.The firm will earn positive economic profit if the market price is
a. positive.
b. $6.
c. above $6
d. There is no price at which the firm earns positive economic profits.
Solutions
Expert Solution
1.
Correct Answer:
B. $15
In competitive market,
P = MR = MC = $10
Q = 5
Economic profit = total revenue – total cost = 10*5 – 7*5 = $15
2.
Correct Answer:
A. $0
P = MR = MC = $6
Economic profit = total revenue – total cost = 6*3 – 6*3 = 0
3.
Correct Answer:
C. $35
When price is $10.
Total cost = Average cost * quantity = 7*5 =$35
4.
Correct Answer:
D. $50
When price is $10.
Total revenue= Average price * quantity = 10*5 =$50
5.
Correct Answer:
B. $6
At price = $6
Economic profit = total revenue – total cost = 6*3 – 6*3 = 0
6.
Correct Answer:
C. above $6
Above the price of $6, firm will earn positive economic profit.
Rahul Sunny answered 2 years agoRelated Solutions
A. In the short-run if the price of the firm’s product is $75 this firm will produce ______ units and (make a normal profit only; make an economic profit of $______; make an economic loss of $______).
Quantity TC0781156221932744320541065207660A. In the short-run if the price of
the firm’s product is $75 this firm will produce ______ units and
(make a normal profit only; make an economic profit of $______;
make an economic loss of $______). Suppose
this firm is typical of other firms in this industry. In the
long-run (firms in other industries will enter this
industry; firms in this industry will begin to leave)
so market supply will (increase, decrease), and
the price of the product...
1.In long-run competitive market equilibrium, price equals _______ and economic profit is ______.
1.In long-run competitive market equilibrium, price equals
_______ and economic profit is ______.A. Minimum average variable cost; greater than zeroB. Minimum average total cost; zeroC. Maximum marginal cost; zeroD.Minimum fixed cost; greater than zero2. Which of the following market structures has the highest
barriers to
entry? A. Perfect
competition B.
Monopoly C. Monopolistic
competition D. Oligopoly3. Which of the following is consistent with a competitive
market? A. A small number of
firms B. Exit of small firms when profits are high for large
firms C. Zero economic...
1. Is there a presence of economic profit for Microsoft (Monopoly)? Long run- Short run- 2....
1. Is there a presence of economic profit for Microsoft
(Monopoly)?
Long run-
Short run-
2. Is there a presence of economic profits for Netflix
(oligopoly)?
Long run-
short run-
3. Is there a presence of economic profits for Mcdonalds (
Monopolistic Competition)?
Long run-
Short run-
When does a monopolist make a short-run economic profit? When does it make short-run economic loss,...
When does a monopolist make a short-run economic profit? When
does it make short-run economic loss, but continue production? When
does it shut down?
9. a. Suppose that a firm’s production function is q=9x^1/2 in the short run, where there...
9. a.
Suppose that a firm’s production function is q=9x^1/2 in the short
run, where there are fixed costs of $1000, and x is the
variable input whose cost is $4000 per unit. What is the total cost
of producing a level of output q? In other words, identify
the total cost function C(q).
b. Write down the
equation for the supply curve.
c. If price is
$1000, how many units will the firm produce? What is the level of...
1. What is the difference between the short run and the long run for the profit-maximizing...
1. What is the difference between the short run and the long run
for the profit-maximizing firm?
2. The number of repairs produced by a computer retail shop
depends on the number of workers as follows:
Number of Workers
Number of Repair
Marginal Product (what each additional worker adds to the total
production)
Average Product
(the number of units per worker)
0
0
-
1
8
2
20
3
35
4
45
5
52
6
57
7
60
a. For...
1. Modeling Questions – Cost Functions and Profit Maximization A perfect competitive firm’s short-run cost function...
1. Modeling Questions – Cost Functions and Profit
Maximization
A perfect competitive firm’s short-run cost function is
estimated to be
Cy=10+18 y-4y2+0.6y3 ,
where y is the output, C(y) is the total cost.
a.(2’) What is the firm’s short-run fixed cost?
b.(2’) What is the firm’s short-run variable cost function?
c.(12’) Derive the functions of MC, AVC, AFC, and AC.
d Carefully graph your functions in the following
combinations:
TC, FC, and VC vs. y on a single...
A.)What price will be charged by this firm (in the short-run) B.)What quantity will be sold...
A.)What price will be charged by this firm (in the short-run)
B.)What quantity will be sold by this firm in the short-run? C.)
What profit will be earned by this firm (in the short-run) at that
price and output?
Given #1 above, what happens in the long-run? Will the final
price be higher or lower than what you found above? Assume that the
costs remain the same and remember that this is a monopolistically
competitive industry.
Given #2 above, what...
1. How are the firms profit maximizing output and price determined in the short run? long...
1.
How are the firms profit maximizing output and price determined in
the short run? long run?
2. Are the firms demand curve and the industrys demand curve
the same? why or why not?
3. What are the relationships among the different average
costs and marginal costs in the short run and long run?
4. How are firms supply and the industrys supply curves
determined in the short and long run?
A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $150.
A perfectly competitive
firm has the following fixed and variable costs in the short run.
The market price for the firm’s product is $150.Complete the table.OutputFCVCTCMCTRMRProfit/Loss0$100$01100100210018031003004100440 5100600 6100780 At what output rate does the firm maximize profit or
minimize loss?What is the firm’s marginal revenue at each positive
level of output? Its average revenue?What can you say about the relationship between marginal
revenue and marginal cost for output rates below the profit
–maximizing (or loss minimizing) rate? For output rates above the
profit...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Write a program that prints and calls two methods. 1. Compute and return the future value...
- Assume you have been selected to lead your team in the development of a quality management...
- java You are creating an array where each element is an (age, name) pair representing guests...
- Joni is a financial planner for ABC firm. She provided all of her clients with the...
- Suppose you plan to retire in 40 years. If you make 10 annual investments of $...
- PLEASE DONT FORGET TO SOLVE THE ASSIGNMENT QUESTION MOST IMP: Ex1) Download the code from the...
- Customer is saying website is running slow when his end clients are trying to access the...
ADVERTISEMENT