Exam 11: Managerial Decisions in Competitive Markets

To answer the question,refer to the following figure,showing the marginal revenue product MRP)and the average revenue product ARP)curves of a perfectly competitive firm hiring a single variable input,labor. If the wage is $20,how many workers will the firm hire?

Bartech,Inc.is a firm operating in a competitive market.The manager of Bartech forecasts product price to be $28 in 2015.Bartech's average variable cost function is estimated to be Bartech expects to face fixed costs of $12,000 in 2015.What is the minimum average variable cost?

Radon Research Corporation RRC)is one of 24 firms in Albuquerque testing homes for dangerous levels of radon gas.There is a standard test that all testing companies use.The manager of RRC wants to know the number of homes to test in 2015 in order to maximize the firm's profit.The manager forecasted a price of $160 for radon tests in 2015.The firm's marginal cost was estimated as where Q is the number of tests performed each week.RRC's fixed cost will be $250 per week.How many radon tests per week should be undertaken?

a perfectly competitive market

Economic rent

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: where P is price,M is income,and is the price of a key input.The forecasts for the next year are = $15,000 and = $20.Average variable cost is estimated to be Total fixed cost will be $6,000 next year.Suppose that income for next year is forecasted to be $9,000 instead.What is the revised price forecast for next year?

Total cost schedule for a competitive firm: If market price is $60,what is the maximum profit the firm can earn?

Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: Supply: where Q is quantity,P is the price of the product,M is income,and is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and for 2015: The manager also estimates the average variable cost function to be Total fixed costs will be $2,000 in 2015.The manager _____ produce since _____________.

A competitive firm will maximize profit by hiring the amount of an input at which

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: where P is price,M is income,and is the price of a key input.The forecasts for the next year are = $15,000 and = $20.Average variable cost is estimated to be Total fixed cost will be $6,000 next year.Suppose that income next year is forecasted to be $10,000 instead.What will the firm's profit loss)be?

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: where P is price,M is income,and is the price of a key input.The forecasts for the next year are = $15,000 and = $20.Average variable cost is estimated to be Total fixed cost will be $6,000 next year.What is the firm's minimum average variable cost?

To answer the question,refer to the following figure,showing the marginal revenue product MRP)and the average revenue product ARP)curves of a perfectly competitive firm hiring a single variable input,labor. If the wage is $15,how many workers will the firm hire?

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: where P is price,M is income,and is the price of a key input.The forecasts for the next year are = $15,000 and = $20.Average variable cost is estimated to be Total fixed cost will be $6,000 next year.Suppose that income next year is forecasted to be $10,000 instead.What is the revised price forecast for next year?

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: where P is price,M is income,and is the price of a key input.The forecasts for the next year are = $15,000 and = $20.Average variable cost is estimated to be Total fixed cost will be $6,000 next year.What will the firm's profit loss)be?

Sport Tee Corporation manufactures T-shirts bearing the logos of professional football teams.The wholesale market for sport T-shirts is perfectly competitive.The manager forecasts the wholesale price of T-shirts next year to be $7.00.The firm's estimated marginal cost is where Q is the number of T-shirts produced and sold each month.Sport Tee Corporation will have a fixed cost of $2,000 per month.Monthly profit will be

In long-run competitive equilibrium it is possible for firm owners to

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results: where P is price,M is income,and is the price of a key input.The forecasts for the next year are = $15,000 and = $20.Average variable cost is estimated to be Total fixed cost will be $6,000 next year.Suppose that income for next year is forecasted to be $9,000 instead.What will the firm's profit loss)be?

Bartech,Inc.is a firm operating in a competitive market.The manager of Bartech forecasts product price to be $28 in 2015.Bartech's average variable cost function is estimated to be Bartech expects to face fixed costs of $12,000 in 2015.The profit-maximizing or loss-minimizing)output for Bartech is

Bartech,Inc.is a firm operating in a competitive market.The manager of Bartech forecasts product price to be $28 in 2015.Bartech's average variable cost function is estimated to be Bartech expects to face fixed costs of $12,000 in 2015.At what level of output will Bartech's average variable cost reach its minimum value?

Which of the following is NOT a characteristic of long-run equilibrium for a perfectly competitive firm?