Two firms constitute the entire doghouse industry.One has a long-run cost curve of 3 + 4y2/3 and the other has a long-run cost curve of 10 + y2/10.If no new firms enter the industry,at which of the following prices will exactly one firm operate?

A) $1 B) $3 C) $5 D) $7 E) None of the above. A) $1 B) $3 C) $5 D) $7 E) None of the above.

The bicycle industry is made up of 100 firms with the long-run cost curve c(y)= 2+ (y2/2)and 120 firms with the long-run cost curve c(y)= y2/4.No new firms can enter the industry.What is the long-run industry supply curve at prices greater than $2?

A) y = 170p. B) y = 360p. C) y = 240p. D) y =340p. E) y =375p. A) y = 170p. B) y = 360p. C) y = 240p. D) y =340p. E) y =375p.

Exam 24: Industry Supply-Part A

An industry has 1,000 firms,each with the production function f(x₁,x₂)=x^1/2₁x^1/2₂.The price of factor 1 is $1 and the price of factor 2 is $1.In the long run,both factors are variable,but in the short run,each firm is stuck with using 100 units of factor 2.The long-run industry supply curve is

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Question 21

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

(Multiple Choice)

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Question 22

In a certain industry,the supply curve of any firm is S_i(p)= p/2.If a firm produces 5 units of output,what are its total variable costs?

(Multiple Choice)

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Question 23

In Baggs,Wyoming,cattle can be produced according to the following process: C =G/20+ P/40,where C is the number of cattle,G are bushels of grain,and P are acres of pasture.If grain costs $4 per bushel and pasture costs $3 per acre,how many cattle can Rancher Roy produce with a budget of $6,000?

(Multiple Choice)

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Question 24

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{x₁,4x₂})^1/2.The cost of factor 1 is $5 per unit and the cost of factor 2 is $5 per unit.In the short run,the industry supply curve is given by

(Multiple Choice)

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Question 25

On a tropical island there are 100 potential boat builders,numbered 1 through 100.Each can build up to20 boats a year,but anyone who goes into the boatbuilding business has to pay a fixed cost of $19.Marginal costs differ from person to person.Where y denotes the number of boats built per year,boat builder 1 has a total cost function c(y)= 19 + y.Boat builder 2 has a total cost function c(y)=19 + 2y,and more generally,for each i,from 1 to 100,boat builder i has a cost function c(y)= 19 + iy.If the price of boats is 25,how many boats will be built per year?

(Multiple Choice)

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Question 26

On a tropical island there are 100 potential boat builders,numbered 1 through 100.Each can build up to8 boats a year,but anyone who goes into the boatbuilding business has to pay a fixed cost of $7.Marginal costs differ from person to person.Where y denotes the number of boats built per year,boat builder 1 has a total cost function c(y)= 7 + y.Boat builder 2 has a total cost function c(y)= 7 + 2y,and more generally,for each i,from 1 to 100,boat builder i has a cost function c(y)= 7+ iy.If the price of boats is 15,how many boats will be built per year?

(Multiple Choice)

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Question 27

In the absence of government interference,there is a constant marginal cost of $6 per ounce for growing marijuana and delivering it to buyers.Suppose that government authorities seize shipments whenever they find them and resell the marijuana that they seize on the open market.The probability that any shipment of marijuana is seized is .50.If a shipment is seized,there is no other punishment besides loss of the marijuana that is seized.The effect of the government action is to

(Multiple Choice)

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Question 28

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{x₁,4x₂})^1/2.The cost of factor 1 is $2 per unit and the cost of factor 2 is $4 per unit.In the short run,the industry supply curve is given by

(Multiple Choice)

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Question 29

In a certain industry,the supply curve of any firm is S_i(p)= p/2.If a firm produces 6 units of output,what are its total variable costs?

(Multiple Choice)

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Question 30

In the problem discussed in your workbook,the cost of capturing a cockatoo and transporting him to the United States is about $40 per bird.Cockatoos are drugged and smuggled in suitcases to the United States.Half of the smuggled cockatoos die in transit.Each smuggled cockatoo has a 10% probability of being discovered,in which case the smuggler is fined.If the fine imposed for each smuggled cockatoo is increased to $700,then the equilibrium price of cockatoos in the United States will be

(Multiple Choice)

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Question 31

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 .30 and the fine if a shipper is caught is $35 per ounce,then the equilibrium price of marijuana per ounce is

(Multiple Choice)

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Question 32

In the problem discussed in your workbook,the cost of capturing a cockatoo and transporting him to the United States is about $40 per bird.Cockatoos are drugged and smuggled in suitcases to the United States.Half of the smuggled cockatoos die in transit.Each smuggled cockatoo has a 10% probability of being discovered,in which case the smuggler is fined.If the fine imposed for each smuggled cockatoo is increased to $1,100,then the equilibrium price of cockatoos in the United States will be

(Multiple Choice)

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Question 33

On a small island,papayas can only be sold in the market in the center of the island.Although papayas only cost $1 to raise,they can be sold in the market for $3.But it costs $.10 per kilometer to transport each papaya to market.If an acre of land grows 200 papayas,how much rent does an acre of land 4 kilometers from the market command?

(Multiple Choice)

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Question 34

Two firms constitute the entire doghouse industry.One has a long-run cost curve of 3 + 4y₂/3 and the other has a long-run cost curve of 10 + y₂/10.If no new firms enter the industry,at which of the following prices will exactly one firm operate?

(Multiple Choice)

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Question 35

The bicycle industry is made up of 100 firms with the long-run cost curve c(y)= 2+ (y₂/2)and 120 firms with the long-run cost curve c(y)= y₂/4.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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(78)

Question 36

In Baggs,Wyoming,cattle can be produced according to the following process: C== G/10 + P/40,where C is the number of cattle,G are bushels of grain,and P are acres of pasture.If grain costs $4 per bushel and pasture costs $4 per acre,how many cattle can Rancher Roy produce with a budget of $4,000?

(Multiple Choice)

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Question 37

Suppose that all firms in a given industry have the same supply curve given by S_i(p)= 2p when p is greater than or equal to $2 and S_i(p)=0 0 when p is less than $2.Suppose that market demand is given by D(p)= 12 -p.If firms continue to enter the industry so long as they can do so profitably,the equilibrium price must be closest to

(Multiple Choice)

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Question 38

Showing 21 - 38 of 38

Exam 24: Industry Supply-Part A

An industry has 1,000 firms,each with the production function f(x1,x2)=x1/21x1/22.The price of factor 1 is $1 and the price of factor 2 is $1.In the long run,both factors are variable,but in the short run,each firm is stuck with using 100 units of factor 2.The long-run industry supply curve is

In a certain industry,the supply curve of any firm is Si(p)= p/2.If a firm produces 5 units of output,what are its total variable costs?

In Baggs,Wyoming,cattle can be produced according to the following process: C =G/20+ P/40,where C is the number of cattle,G are bushels of grain,and P are acres of pasture.If grain costs $4 per bushel and pasture costs $3 per acre,how many cattle can Rancher Roy produce with a budget of $6,000?

In a certain industry,the supply curve of any firm is Si(p)= p/2.If a firm produces 6 units of output,what are its total variable costs?

Two firms constitute the entire doghouse industry.One has a long-run cost curve of 3 + 4y2/3 and the other has a long-run cost curve of 10 + y2/10.If no new firms enter the industry,at which of the following prices will exactly one firm operate?

The bicycle industry is made up of 100 firms with the long-run cost curve c(y)= 2+ (y2/2)and 120 firms with the long-run cost curve c(y)= y2/4.No new firms can enter the industry.What is the long-run industry supply curve at prices greater than $2?

In Baggs,Wyoming,cattle can be produced according to the following process: C== G/10 + P/40,where C is the number of cattle,G are bushels of grain,and P are acres of pasture.If grain costs $4 per bushel and pasture costs $4 per acre,how many cattle can Rancher Roy produce with a budget of $4,000?

Demand-Part A

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-Part A

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

In a certain industry,the supply curve of any firm is S_i(p)= p/2.If a firm produces 5 units of output,what are its total variable costs?

In a certain industry,the supply curve of any firm is S_i(p)= p/2.If a firm produces 6 units of output,what are its total variable costs?

Two firms constitute the entire doghouse industry.One has a long-run cost curve of 3 + 4y₂/3 and the other has a long-run cost curve of 10 + y₂/10.If no new firms enter the industry,at which of the following prices will exactly one firm operate?

The bicycle industry is made up of 100 firms with the long-run cost curve c(y)= 2+ (y₂/2)and 120 firms with the long-run cost curve c(y)= y₂/4.No new firms can enter the industry.What is the long-run industry supply curve at prices greater than $2?