Exam 8: Competitive Firms and Markets

-The above figure shows the cost curves for a typical firm in a market and three possible market supply curves.If there are 100 identical firms,the market supply curve is best represented by

-The above figure shows the cost curves for a typical firm in a competitive market.If p = 10,then

-The above figure shows the cost curves for a typical firm in a competitive market.If price = 8.5,then

If a firm operates in a perfectly competitive market,then

Lelu runs a firm that sells multipasses to intergalactic cruises.Her short-run cost function is given by C(q)= q² + 25q + 144 a.If the market price is $75/pass,how many units will Lelu produce? b.At what price will Lelu earn zero profits? c.If the price is below the level you found in b.,will Lelu shut down? If so,explain.If not,below what price will she shut down?

In a competitive market,if buyers did not know all the prices charged by the many firms,

Suppose that there are 80 firms in a market,each with the following cost function: C(q)= 100 + 4q² a.Derive the short-run market supply curve. b.Suppose the market demand is QD = 1280 - 30p Find the equilibrium market quantity and price. c.How much output will each firm produce? How much profit is each firm making?

In a perfectly competitive market,

Suppose the Christmas trees market is perfectly competitive.An owner is currently earning a profit of $1,000,the cost of producing and selling an additional Christmas tree is $25,the current market price is $20.The owner

-The above figure shows the short run cost curves for a typical firm in a competitive market.If price = 4,then the firm

Suppose there are 1000 identical wheat farmers.For each,TC = 10 + q².Market demand is Q = 600,000 - 100p.Derive the short-run equilibrium Q,q,and p.Does the typical firm earn a short-run profit?

For the following, please answer "True" or "False" and explain why. -If a firm sets marginal revenue equal to marginal cost,it will make an economic profit.

For the following, please answer "True" or "False" and explain why. -Even though fixed costs do not affect the output decision,an increase in fixed costs results in a wider range of prices for which the firm operates at a loss.

-The above figure shows the short run cost curves for a typical firm in a competitive market.If price = 8,then the firm

A small business owner earns $50,000 in revenue annually.The explicit annual costs equal $30,000.The owner could work for someone else and earn $25,000 annually.The owner's business profit is ________ and the economic profit is ________.

If firms in a competitive market are not identical,then an increase in cost will

If a competitive firm is in short-run equilibrium,then

-The above figure shows the cost curves for a competitive firm.If the firm is to operate in the short run,price must exceed

-The above figure shows the cost curves for a typical firm in a competitive market.If there are 200 identical firms,estimate the market quantity supplied when p = 4,8,and 10.

-The above figure shows the long-run cost curves for a typical firm in a competitive market.If the number of firms is unrestricted and input costs are constant,derive the long-run market supply curve.