The bicycle industry is made up of 100 firms with the long-run cost curve c(y)= 2 + (y2/2)and 60 firms with the long-run cost curve c(y)= y2/10.No new firms can enter the industry.What is the long-run industry supply curve at prices greater than $2?

A) y = 420p. B) y = 400p. C) y = 200p. D) y = 300p. E) y = 435p. A) y = 420p. B) y = 400p. C) y = 200p. D) y = 300p. E) y = 435p.

Exam 22: Industry Supply-Part A

The price elasticity of demand for gasoline in the United States is equal to 0.15.How should the price elasticity of demand for the individual firm compare to 0.15 (higher, lower, same, can't tell)? Explain why.

(Essay)

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Question 41

The bicycle industry is made up of 100 firms with the long-run cost curve c(y)= 2 + (y₂/2)and 60 firms with the long-run cost curve c(y)= y₂/10.No new firms can enter the industry.What is the long-run industry supply curve at prices greater than $2?

(Multiple Choice)

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Question 42

It is possible to have an industry in which all firms make zero economic profits in long-run equilibrium.

(True/False)

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Question 43

An industry has 100 firms.These firms have identical production functions.In the short run, each firm has fixed costs of $200.There are two variable factors in the short run and output is given by y =(min{x₁, 3x₂})^1/2.The cost of factor 1 is $5 per unit and the cost of factor 2 is $4 per unit.In the short run, the industry supply curve is given by

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Question 44

Brand X is one of many firms in a competitive industry where each firm has a constant marginal cost of 2 dollars per unit of output.If marginal cost for Brand X rises to 4 dollars per unit and marginal costs of all other firms in the industry stay constant, by how much does the price in the industry increase?

(Multiple Choice)

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Question 45

A firm uses a single input to produce its output, which is sold in a competitive market.It gets quantity discounts on purchases of its input.If it buys x units of the input, the price it must pay per unit of input is 25/x + 4.If it buys no inputs, it doesn't have to pay anything.The firm's production function is f(x)= 60x - x².If the price of the firm's output is 1, the profit-maximizing amount of input to buy is

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Question 46

In the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers.If the probability that any shipment of marijuana is seized is .10 and the fine if a shipper is caught is $25 per ounce, then the equilibrium price of marijuana per ounce is

(Multiple Choice)

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Question 47

If some firm in an industry has the production function F(x, y)= x^3/4 y^3/4, where x and y are the only two inputs in producing the good, then that industry cannot be competitive in the long run.

(True/False)

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Question 48

The short-run industry supply curve can be found by horizontally summing the short-run supply curves of all the individual firms in the industry.

(True/False)

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Question 49

Showing 41 - 49 of 49

Exam 22: Industry Supply-Part A

The price elasticity of demand for gasoline in the United States is equal to 0.15.How should the price elasticity of demand for the individual firm compare to 0.15 (higher, lower, same, can't tell)? Explain why.

The bicycle industry is made up of 100 firms with the long-run cost curve c(y)= 2 + (y2/2)and 60 firms with the long-run cost curve c(y)= y2/10.No new firms can enter the industry.What is the long-run industry supply curve at prices greater than $2?

It is possible to have an industry in which all firms make zero economic profits in long-run equilibrium.

If some firm in an industry has the production function F(x, y)= x3/4 y3/4, where x and y are the only two inputs in producing the good, then that industry cannot be competitive in the long run.

The short-run industry supply curve can be found by horizontally summing the short-run supply curves of all the individual firms in the industry.

Budget Constraint-Part A

Budget Constraint-Part B

Preferences-Part A

Preferences-Part B

Utility-Part A

Utility-Part B

Choice-Part A

Choice-Part B

Demand-Part A

Demand-Part B

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

Filters

The bicycle industry is made up of 100 firms with the long-run cost curve c(y)= 2 + (y₂/2)and 60 firms with the long-run cost curve c(y)= y₂/10.No new firms can enter the industry.What is the long-run industry supply curve at prices greater than $2?

If some firm in an industry has the production function F(x, y)= x^3/4 y^3/4, where x and y are the only two inputs in producing the good, then that industry cannot be competitive in the long run.