Hello, I am stuck on a few microeconomics questions. Can someone please help! Th

Question

Hello,

I am stuck on a few microeconomics questions. Can someone please help! Thank you in advance.

Exhibit 0134 MC ATC AVC q It 2-S- For the perfectly competitive firm represented in Exhibit 0134, the shor-run supply curve is the (a) abcde. (b) bode. (c) cde. (d) de. (e) abcd. Exhibit 0135 TC 0 $10.00 o.00 $10.00 1 $10.00 $20.00 $30.00 $20.00 2 $10.00 3 S10.00 $54. 4$10.00 $72.00 5 $10.00 $92.00 $102,00 $20.00 6 s10.00 $114.00 124.00 $22.00 7 $10.00 $138.00 $148.00 $24.00 $38.00 00 $48.00 $18.00 $64.00 $16.00 $82.00 $18.00 Cousider Exhibit 0135. Assume the firm is perfectly competitive and the market price is 521. To maximize profit or minimize loss, the firm will (a) shut down. (b) produce 7 units. (c) produce 3 units. (d) produce 4 units. (e) produce 5 units. Consider Exhibit 0135. If the market price is S21, this perfectly competiive firm wil (a) earn pronts of S3. (b) earm profits of $2. (c) earn profits of SI. (d) incur a loss of S10. (e) break even. Exhibit 0138 TAble Price Quantity Demanded 550 40 30 co

Explanation / Answer

25. b) bcde

Upward sloping MC curve is the supply curve.

26. e) produce 5 units

Under perfect competition, P = MC is the equilibrium quantity. Here P > MC at 5 units and at 6 units MC exceeds Price so quantity will be less than 6 units i.e. 5 units.

27. c) earn profit of $ 1

P is not equal to MC at any level of output so firm choose output where P > MC i.e. 5 unit so profit = 21 - 20 = $ 1

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.