Look at the figure A Perfectly Competitive Firm in the Short Run. The firm\'s to

Question

Look at the figure A Perfectly Competitive Firm in the Short Run. The firm's total revenue from the sale of its most profitable level of output is:

a. DL

b. 0GHB

c. BH

d. 0GLD

Look at the table Soybean Cost. What is the break-even price for this farmer?

a. $14.0

b. $14.5

c. $13.0

d. $13.5

3.

Look at the table Lilly's Apple Orchard. Lilly is the price-taking owner of an apple orchard. Her orchard has fixed costs of $30. If the price of a bushel of apples is $25, how many bushels will Lilly produce to maximize profit?

a. 0

b. 2

c. 1

d. 3

4.

Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $4, in the short run the farmer will produce _____ bushels of corn and earn an economic _____ equal to _____.

a. 3; profit; $20 per bushel

b. 0; loss; average fixed costs

c. 3; loss; $30 per bushel

d. 0; loss; total fixed costs

5. The break-even price for a perfectly competitive firm is equal to:

a. the minimum value of average total cost.

b. the minimum value of average variable cost.

c. the marginal revenue, provided that marginal revenue is equal to marginal cost.

d. the average fixed cost at the given output level.

6. Which of the following statements is NOT characteristic of perfect competition?

a. All firms produce the same standardized product.

b. There are many producers, and each has only a small market share.

c. There are no obstacles to entry into or exit from the industry.

d. There are many producers; one firm has a 25% market share, and all of the remaining firms have a market share of less than 2% each.

Explanation / Answer

1. d. 0GLD

2. d. $13.5

3. d. 3

4. d. 0; loss; total fixed costs

5. a. the minimum value of average total cost.

6. d. There are many producers; one firm has a 25% market share, and all of the remaining firms have a market share of less than 2% each.

If you don't understand anything, then comment, I will revert back on the same.

And If you liked the answer then please do review the same. Thanks :)

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

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