Exam 9: Perfect Competition in a Single Market

Quotas that limit the quantity of imports of a foreign good provide an incentive for foreign suppliers to: I.Provide higher quality goods. II.Seek more open markets elsewhere. III.Lower prices to be more competitive. IV.Stop all trade with the country imposing the quotas. Which of the above statements are true?

Suppose a chemical company is in a perfectly competitive industry and has a short run total cost curve of TC = q³ + 5q² + 10q + 10 and a short run marginal cost of SMC = q² + 10q + 10.At the price of 385,how many will be produced?

Suppose demand for a good is Q_D = 100 - P and supply is Q_S = -20 + P.What is the amount consumers pay producers?

Suppose there are 100 firms each with a short run total cost of STC = q² + q + 10,so that marginal cost is MC = 2q +1.If market demand is given by Q_D = 1050 - 50P,how much will be produced in the market?

The short-run market supply curve is

Suppose demand for a good is Q_D = 100 - P and supply is Q_S = -20 + P.Suppose that a nationwide quota (of 20)is enforced so that more can be used in a war effort.What is the price?

Suppose domestic beef producers face demand of Q_D = 1000 - 5P.Suppose the Chinese acquire a taste for U.S.beef such that their demand is Q_D = 500 - 5P.Market demand is now

Suppose there are 100 firms each with a short run total cost of STC = q² + q + 10,so that marginal cost is MC = 2q +1.The market supply curve is

If the market for hula-hoops is characterized by a very inelastic supply curve and a very elastic demand curve,an inward shift in the supply curve would be reflected primarily in the form of

The infant industry case for tariff protection assumes that the protected industry is

Suppose domestic beef producers face demand of Q_D = 1000 - 5P.In the very short run 500 head of beef are produced.Suppose mad cow strikes a portion of the national herd and the amount brought to market falls to 400.The price per head will rise by

In the opening of free trade,if world prices of a good are less than domestic prices of that same good,

Positive economic profits exist for a firm in the long run if price is above

Suppose there are 100 firms each with a short run total cost of STC = q² + q + 10,so that marginal cost is MC = 2q +1.If market demand is given by Q_D = 1050 - 50P,profit to the firm will be

Suppose there are 100 firms each with a short run total cost of STC = q² + q + 10,so that marginal cost is MC = 2q +1.If market demand is given by Q_D = 1050 - 50P,total revenue to each firm will be

If the market for bottled spring water is characterized by a very elastic supply curve and a very inelastic demand curve,an outward shift in the supply curve would be reflected primarily in the form of

Suppose there are 100 firms each with a short run total cost of STC = q² + q + 10,so that marginal cost is MC = 2q +1.If market demand is given by Q_D = 1050 - 50P,total cost to the firm will be

In the short run,an increase in market demand will usually lead to a(n)

A deadweight loss of consumer and/or producer surplus occurs when

"Missing markets" result from