Word Bank If you fill in the blanks with words, the grading algorithm will mark
ID: 1225599 • Letter: W
Question
Word Bank
If you fill in the blanks with words, the grading algorithm will mark your answer as incorrect.
Make sure that there are no blanks spaces before or after the number when you enter it.
GRAPH 1
1
a
21
elastic
41
marginal revenue
2
b
22
enter
42
market participants
3
c
23
equal
43
more
4
d
24
equal to
44
normal profit
5
e
25
equals
45
perfectly elastic
6
P(1)
26
exit
46
price
7
p(2)
27
fall
47
productive
8
P(3)
28
firms
48
profits
9
allocative
29
fixed cost
49
rise
10
average fixed cost
30
free entry and exit
50
sellers
11
average revenue
31
greater
51
shut down
12
average total cost
32
homogeneous
52
standardized
13
average variable cost
33
horizontal
53
taker
14
barriers or obstacles
34
industry
54
takers
15
buyers
35
leave
55
total cost
16
competitive
36
less
56
unique
17
continue producing
37
losses
57
unique characteristics
18
downward sloping
38
many
58
upward sloping
19
economic loss
39
marginal cost
59
variable cost
20
economic profit
40
marginal profits
60
zero
QUESTION 4
1. Refer to Graph 1 on the Resource Sheet. The current demand curve, D(1), is also the firm's BLANK curve and BLANK curve. Given this demand for this firm's product, the firm will charge a price of (P1-3 -- enter number from Word Bank, do not enter letter ) BLANK and will produce (a-e -- enter number from Word Bank, do not enter letter) BLANK units of output. That's because it is profitable to produce all products for which the BLANK exceeds the BLANK . The firm will stop producing when the former no long exceeds the latter -- that is, when the two are BLANK . As you can see by the difference between AR and ATC, given this price/quantity combination, the firm is earning BLANK .
6 points
QUESTION 5
1. BLANK , in a perfectly BLANK industry, are not sustainable in the long run. That's because other firms are free to BLANK the industry. As they do, the supply of the product will BLANK causing the price of the product (and the demand curve) to BLANK . If the price falls to something just above P2 on the graph, the firm will still be making BLANK and other firms will continue to BLANK the industry, causing both the product BLANK and the demand curve for the product to continue to .BLANK
8 points
QUESTION 6
1. If, on the other hand, the entry by other firms into the BLANK caused the product price to fall somewhere between P2 and P3, the firm would now be experiencing BLANK . With the product price within that range, firms would BLANK because P> BLANK . That's because even if the firm BLANK , it would still incur BLANK obligations, which do not expire when a firm stops producing. As long as marginal revenue was taking a bite out of fixed costs because it was covering BLANK , the firm will not BLANK . It certainly would, however if the product price fell to (P1-3 -- enter number from Word Bank, do not enter letter ) BLANK or below.
8 points
QUESTION 7
1. Eventually, however, the fixed costs obligations of some firms will expire and they will take this opportunity to BLANK the industry. When they do, supply will go down, price will go up, and in equilibrium, the firm will be making a BLANK.
Word Bank
If you fill in the blanks with words, the grading algorithm will mark your answer as incorrect.
Make sure that there are no blanks spaces before or after the number when you enter it.
GRAPH 1
Explanation / Answer
Q4
Blank no
Ans code
1
11
2
3
6
4
3
5
41
6
39
7
23
8
20
Q5
Blank no
Ans code
1
48
2
16
3
22
4
49
5
27
6
35
7
46
8
49
Q6
Blank no
Ans code
1
34
2
44
3
17
4
39
5
37
6
29
7
8
9
8
Q7
Blank no
Ans code
1
22
2
20
Q4
Blank no
Ans code
1
11
2
3
6
4
3
5
41
6
39
7
23
8
20
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