Exam 8: Short-Run Costs and Output Decisions

If there is an increase in industry supply while the industry demand remains the same, then an individual firm in a perfectly competitive industry currently earning negative profits will see its profits

Jerry sells cherry sno-cones along the boardwalk in New Jersey. During the summer this is a perfectly competitive business, and Jerry faces a perfectly elastic demand curve. If he wants to try to increase revenues he should

Strawberries, a normal good, are produced in a perfectly competitive market. Average consumer incomes increase. This will cause the individual strawberry farmerʹs marginal revenue to ________ and their profit-maximizing level of output to ________.

If a firm's total costs are $80 when 10 units of output are produced and $90 when 11 units of output are produced, the marginal cost of the 11th unit is

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow Figure 8.5 -Refer to Figure 8.4. If three microwave ovens are produced, Micro Oven's total variable costs are

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow Figure 8.5 -Refer to Figure 8.5. If six drones are produced, average variable costs are

Marginal cost

Assume Cathy's Cupcake Company operates in a perfectly competitive market producing 10,000 cupcakes per day. At this output level, price exceeds this firmʹs marginal and average variable costs. To maximize profits, Cathy's should

Related to the Economics in Practice on page 176: When there are only a few empty cabins on a large cruise ship, the marginal cost of adding extra passengers to occupy those cabins

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow Figure 8.5 -Refer to Figure 8.4. The marginal cost of the third microwave oven is

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow Figure 8.5 -Refer to Figure 8.4. If six microwave ovens are produced, Micro Oven's total costs are

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow Figure 8.5 -Refer to Figure 8.5. If seven drones are produced, total variable costs are

Refer to the information provided in Figure 8.7 below to answer the question(s) that follow. Figure 8.7 -Refer to Figure 8.7. If Buffy gives 17 perms per day, her total revenue is

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow Figure 8.5 -Refer to Figure 8.4. If two microwave ovens are produced, average variable costs are

Refer to the information provided in Table 8.7 below to answer the following question(s). Table 8.7 Number of cruit Baskets TFC TVC TC MC 0 \ 50 \ 0 \ 50 -- 1 50 10 60 10 2 50 15 65 5 3 50 21 71 6 4 50 31 81 10 5 50 46 96 15 6 50 68 118 22 -Refer to Table 8.7. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $15. To maximize profits, Exotic Fruit should sell ________ fruit baskets and their profit is ________.

In the short run where total variable cost is ________ at a(n) ________ rate, marginal cost is positive and increasing.

Because of free entry and exit, firms in a perfectly competitive market cannot earn a profit in the short run.

Amy spends $6,000 on remodeling a storefront that she then opens as a take-out deli. After opening her deli her business is terrible and she needs an additional $2,000 to keep the deli open. Which of the following is true?

Marginal cost is ________ average variable cost when ________.

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow Figure 8.5 -Refer to Figure 8.4. If six microwave ovens are produced, Micro Oven's total variable costs are