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Consider a Competitive Industry and a Price-Taking Firm That Produces

Question 64

Multiple Choice

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: 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 marginal cost function is: A) SMC = 3.0 - 0.0027Q + 0.0000009Q<sup>2</sup> B) SMC = 3.0- 0.00135Q + 0.00000045Q<sup>2</sup> C) SMC = 3.0Q - 0.0027Q<sup>2</sup> + 0.0000009Q<sup>3</sup> D) SMC = 3.0 -0.0054Q + 0.0000018Q<sup>2</sup> E) none of the above Supply: 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 marginal cost function is: A) SMC = 3.0 - 0.0027Q + 0.0000009Q<sup>2</sup> B) SMC = 3.0- 0.00135Q + 0.00000045Q<sup>2</sup> C) SMC = 3.0Q - 0.0027Q<sup>2</sup> + 0.0000009Q<sup>3</sup> D) SMC = 3.0 -0.0054Q + 0.0000018Q<sup>2</sup> E) none of the above where Q is quantity,P is the price of the product,M is income,and 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 marginal cost function is: A) SMC = 3.0 - 0.0027Q + 0.0000009Q<sup>2</sup> B) SMC = 3.0- 0.00135Q + 0.00000045Q<sup>2</sup> C) SMC = 3.0Q - 0.0027Q<sup>2</sup> + 0.0000009Q<sup>3</sup> D) SMC = 3.0 -0.0054Q + 0.0000018Q<sup>2</sup> E) none of the above is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and 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 marginal cost function is: A) SMC = 3.0 - 0.0027Q + 0.0000009Q<sup>2</sup> B) SMC = 3.0- 0.00135Q + 0.00000045Q<sup>2</sup> C) SMC = 3.0Q - 0.0027Q<sup>2</sup> + 0.0000009Q<sup>3</sup> D) SMC = 3.0 -0.0054Q + 0.0000018Q<sup>2</sup> E) none of the above for 2015: 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 marginal cost function is: A) SMC = 3.0 - 0.0027Q + 0.0000009Q<sup>2</sup> B) SMC = 3.0- 0.00135Q + 0.00000045Q<sup>2</sup> C) SMC = 3.0Q - 0.0027Q<sup>2</sup> + 0.0000009Q<sup>3</sup> D) SMC = 3.0 -0.0054Q + 0.0000018Q<sup>2</sup> E) none of the above The manager also estimates the average variable cost function to be 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 marginal cost function is: A) SMC = 3.0 - 0.0027Q + 0.0000009Q<sup>2</sup> B) SMC = 3.0- 0.00135Q + 0.00000045Q<sup>2</sup> C) SMC = 3.0Q - 0.0027Q<sup>2</sup> + 0.0000009Q<sup>3</sup> D) SMC = 3.0 -0.0054Q + 0.0000018Q<sup>2</sup> E) none of the above Total fixed costs will be $2,000 in 2015.The marginal cost function is:


A) SMC = 3.0 - 0.0027Q + 0.0000009Q2
B) SMC = 3.0- 0.00135Q + 0.00000045Q2
C) SMC = 3.0Q - 0.0027Q2 + 0.0000009Q3
D) SMC = 3.0 -0.0054Q + 0.0000018Q2
E) none of the above

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