microeconomics chapter 21 assignment
If a perfectly competitive firm sells 10 units of output at a price of $10 per unit, its marginal revenue per unit is ________.
$10
Use the following figure to answer the questions.
25x(5-7.75)--68.75 short run 45 minimum atc $7
In the figure above, how much is the most efficient output? Instructions: Give your answer as a whole number. Most efficient Output:
26
How much is the firm's most efficient output?
260
Use the following figure to answer the question. How much is output at (a) the break-even point and (b) the shut-down point? (a) Break-even output: (b) Shut-down output:
260 200
In the figure above, how much is the most efficient output? Instructions: Give your answer as a whole number. Most efficient Output:
32 not 25
Use the figure below to answer the following questions. (a) How much is output in the short run if price is $65? Instructions: Round your answer to the nearest whole number. Output: (b) How much is output in the short run if price is $30? Instructions: Round your answer to the nearest whole number. Output: (c) How much is output in the short run if price is $15? Instructions: Round your answer to the nearest whole number. Output:
34 24 not 14
In the graph, at which output is the firm operating most efficiently?
46
Use the following figure to answer the question. How much is the lowest price that the firm will accept in (a) the short run and (b) the long run? (a) Lowest acceptable short-run price: $ (b) Lowest acceptable long-run price: $
80 150
You run a small investment business in which you have $1,000,000 of your own money tied up. You could have earned 5 percent interest if you had invested it elsewhere and you could have earned $70,000 working for someone else. If your accounting profit is $200,000, how much is your economic profit? Instructions: Make sure to include a negative sign in front of your numeric answer if there is an economic loss. Investment business economic profit is: $.
80000
Profit per unit is______.
GJ
The firm's long-run supply curve runs along its ________ curve.
MC
The most efïcient output of a firm is located ________.
at the break even point
The firm's most efficient output _____.
OL
Which statement about the perfect competitor is true?
She will always charge the market price.
Use the following figure to answer the questions. How much will output be in the short run if the price is (a) $70? (b) $120? (c) $160?
a b 240 c 260
(a) Find the total profit or total loss of the firm shown in above figure. (b) Is the firm in the short run or the long run? (c) How much is the firm's most efficient output? (d) What is the lowest price the firm would accept in the long run?
a. 12*0=0 b. long run c. 12 d. minimum ATC $8
Use the following figure to answer the questions. (a) Find the total profit or total loss of the firm shown in above figure. (b) Is the firm in the short run or the long run? (c) How much is the firm's most efficient output? (d) What is the lowest price the firm would accept in the long run?
a. 7.75*2.25=17.44 b. short run c. 6.75 d the minimum of ATC $7.25
The perfect competitor's demand curve is ________.
always horizontal
The perfect competitor's demand and marginal revenue curves are ________
always identical
A firm with explicit costs of $2 million, no implicit costs, and total revenue of $3 million would have ________.
an accounting profit and an economic profit of $1 million
Use the figure below to answer the following questions. (a) The shut-down point occurs where the price line is tangent to at a price of $. (b) The break-even point occurs where the price line is tangent to at a price of $.
avc 20 atc 35
The lowest point on a firm's long-run supply curve is at the _____.
break even point
If a firm is producing a level of output at which that output's marginal cost is less than the price of the good, ________.
higher profits could be obtained with increased production
The most efficient output ________.
is equal to the most profitable output for the perfect competitor only in the long run
At an output of 5, MC = $49 and ATC = $52. At an output of 6, MC = $59 and ATC = $53. At the break-even point, ATC is ________
less than $52
In the short run the perfect competitor will probably ________.
make a profit or take a loss
Under perfect competition, there are ________.
many firms producing an identical product
Use the figure below to answer the following questions. The short-run supply curve for this firm is the . The long-run supply curve for this firm is the
mc curve above avc mc curve above the atc
The marginal cost curve intersects the ATC curve at its ________.
minimum point, which is the break-even point
Use the figure below to answer the following questions. If the price is $30, what will the firm do in (a) the short run and (b) the long run? (a) In the short run it will: (b) In the long run if will:
operate go out of business
The lowest point on a firm's ATC is $29; the lowest point on its AVC is $22. Fill in the table below. What will the firm do in the: If the Price Were: Short Run? Long Run? $30 25 20
operate stay in business operate go out of business shut down go out of business
The lowest point on a firm's ATC is $19; the lowest point on its AVC is $15. Fill in the table below. What would the firm do in the: If the Price Were: Short Run? Long Run? $13 18 20
sd gob op gob op stay in business
If the price is between the shut-down point and the break-even point, the firm is in the ________.
short run taking a loss
The lowest point on a firm's short-run supply curve is at the _______
shut down point
