8/9 micro quiz
The market price of pomegranates is $2, and JoAnne sells 25 pomegranates at the local farmer's market. The total revenue is _____ and the marginal revenue is _____.
$50.00; $2.00
(Table) If the toy-making firm in the table faces a market price of $36 in the short run, it will maximize its profits by producing ____ toys.
91
The perfectly competitive firm's short-run supply curve is the
MC curve above the AVC curve.
If the average total cost is $10 and the price is $8 at the profit-maximizing quantity, what will happen in the long run in a perfectly competitive market?
Some firms will exit the market, pushing the market price higher
If the market price is $60, a firm's minimum average total cost is $70, and minimum average variable cost is $50, what should the firm do in this perfectly competitive market
The firm should continue producing in the short run in order to minimize losses
If Glass Inc. produces 80 window panes per day at the market price of $60 in a perfectly competitive market, what would happen to price if Glass Inc. increases production to 120 window panes, all else equal?
The price would remain the same
A price taker is a firm that
has no control over market price
Which of these is an example of a decreasing cost industry
memory chips for tablets
What market structure has no barriers to market entry and allows firms that have some control over price
monopolistic competition
A firm in a perfectly competitive industry would exhibit which characteristic?I. An ability to produce as much output as the firm desires at the market priceII. No economic profits in the short run but possible economic profits in the long run
only I
Which market structure does not exhibit a downward-sloping demand curve for the firm
perfect competition
Which sequence of market structures ranks the barriers to entry from the fewest to the most?
perfect competition; oligopoly; monopoly
(Table) If the toy-making firm in the table faces a market price of $20 in the short run, it should
shut down
If many firms enter the computer software industry and consequently bid up the price of programmers, then: Selected Answer:
the long-run industry supply curve will slope upward.
Which product is least likely to be produced in a perfectly competitive market
airline jet feul
In a perfectly competitive industry, short-run economic profits will lead firms to _____ the market, causing market price to _____
enter; decrease
According to this graph of a perfectly competitive firm, calculate the total profit
$42
The graph represents a firm that produces the profit-maximizing quantity in the short run. What will happen in the long run?
Market supply will increase, pushing prices lower
If the price of copper pipes is $70 in a perfectly competitive market, and a firm is producing a quantity at which the marginal cost is $65, is this firm maximizing profit?
No, this firm should be producing more to maximize profit
According to this graph of a perfectly competitive firm, calculate the total profit, what is the profit-maximizing price and quantity
Price = $12; Quantity = 14
