Table 10.1 $\begin{array}{|c|c|c|} \hline \text { Quantity } & \begin{array}{c} \text { Total Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Variable Cost } \\ \text { (dollars) } \end{array} \\ \hline 0 & \$ 1,000 & \$ 0 \\ \hline 100 & 1,360 & 360 \\ \hline 200 & 1,560 & 560 \\ \hline 300 & 1,960 & 960 \\ \hline 400 & 2,760 & 1,760 \\ \hline 500 & 4,000 & 3,000 \\ \hline 600 & 5,800 & 4,800 \\ \hline \end{array}$ Table 10.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. -Refer to Table 10.1.The firm will not produce in the short run if the output price falls below

A) $8. B) $4. C) $3.20. D) $2.80. A) $8. B) $4. C) $3.20. D) $2.80.

Table 10.1 $\begin{array}{|c|c|c|} \hline \text { Quantity } & \begin{array}{c} \text { Total Cost } \\ \text { (dollars) } \end{array} & \begin{array}{c} \text { Variable Cost } \\ \text { (dollars) } \end{array} \\ \hline 0 & \$ 1,000 & \$ 0 \\ \hline 100 & 1,360 & 360 \\ \hline 200 & 1,560 & 560 \\ \hline 300 & 1,960 & 960 \\ \hline 400 & 2,760 & 1,760 \\ \hline 500 & 4,000 & 3,000 \\ \hline 600 & 5,800 & 4,800 \\ \hline \end{array}$ Table 10.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. -Refer to Table 10.1.If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss?

A) $0 (it breaks even) B) loss of $1,000 C) profit of $440 D) loss of $440 A) $0 (it breaks even) B) loss of $1,000 C) profit of $440 D) loss of $440

Exam 10: Firms in Perfectly Competitive Markets

Table 10.1 Quantity Total Cost (dollars) Variable Cost (dollars) 0 \ 1,000 \ 0 100 1,360 360 200 1,560 560 300 1,960 960 400 2,760 1,760 500 4,000 3,000 600 5,800 4,800 Table 10.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. -Refer to Table 10.1.The firm will not produce in the short run if the output price falls below

(Multiple Choice)

4.8/5

(75)

Question 141

In long-run perfectly competitive equilibrium, which of the following is false?

(Multiple Choice)

4.9/5

(78)

Question 142

When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell

(Multiple Choice)

4.9/5

(85)

Question 143

If, for a perfectly competitive firm, price exceeds the marginal cost of production, the firm should

(Multiple Choice)

4.8/5

(90)

Question 144

Figure 10.7 -Refer to Figure 10.7.If this is a constant-cost industry, what is the market price in the long-run equilibrium?

(Multiple Choice)

4.8/5

(86)

Question 145

Maximizing average profit is equivalent to maximizing total profit.

(True/False)

4.9/5

(76)

Question 146

A perfectly competitive firm's horizontal demand curve implies that the firm does not have to lower its price to sell more output.

(True/False)

4.9/5

(77)

Question 147

The perfectly competitive market structure benefits consumers because

(Multiple Choice)

4.9/5

(77)

Question 148

Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from its previous owner, Mary Pickford.The lease has five years remaining and requires a monthly payment of $4,000.Max's explicit cost amounts to $3,000 per month more than his revenue.Should Max continue operating his business?

(Multiple Choice)

4.8/5

(82)

Question 149

If, in a perfectly competitive industry, the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost, then

(Multiple Choice)

5.0/5

(76)

Question 150

Table 10.1 Quantity Total Cost (dollars) Variable Cost (dollars) 0 \ 1,000 \ 0 100 1,360 360 200 1,560 560 300 1,960 960 400 2,760 1,760 500 4,000 3,000 600 5,800 4,800 Table 10.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. -Refer to Table 10.1.If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss?

(Multiple Choice)

4.8/5

(85)

Question 151

If a typical firm in a perfectly competitive industry is earning profits, then

(Multiple Choice)

4.8/5

(69)

Question 152

Figure 10.5 Figure 10.5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. -Refer to Figure 10.5.What is the amount of the firm's fixed cost of production?

(Multiple Choice)

4.7/5

(84)

Question 153

In long-run perfectly competitive equilibrium, which of the following is false?

When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell

If, for a perfectly competitive firm, price exceeds the marginal cost of production, the firm should

Figure 10.7 -Refer to Figure 10.7.If this is a constant-cost industry, what is the market price in the long-run equilibrium?

Maximizing average profit is equivalent to maximizing total profit.

A perfectly competitive firm's horizontal demand curve implies that the firm does not have to lower its price to sell more output.

The perfectly competitive market structure benefits consumers because

If, in a perfectly competitive industry, the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost, then

If a typical firm in a perfectly competitive industry is earning profits, then

Figure 10.5 Figure 10.5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. -Refer to Figure 10.5.What is the amount of the firm's fixed cost of production?

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

Filters