16. Figure: Determining Externalities Reference: Ref 13-1 (Figure: Determining E
ID: 1226463 • Letter: 1
Question
16.
Figure: Determining Externalities
Reference: Ref 13-1
(Figure: Determining Externalities) The socially optimal level of production is at point:
e.
b.
f.
g.
17.
In the long run, perfectly competitive firms earn:
supernormal profits.
normal profits.
economic profits.
economic losses.
19.
Labor
Total Product
1
9
2
20
3
33
4
40
Reference: Ref 7-4
(Table) The table provides short run total product data for John's Salsa Company. What is the marginal product of the third employee?
13
11
10
33
21. The short run is:
a.the period of time in which the firm cannot change its use of at least one input.
b.up to two years.
c. a year or less.
d. the period of time during which the firm can alter its output
16.
Figure: Determining Externalities
Reference: Ref 13-1
(Figure: Determining Externalities) The socially optimal level of production is at point:
e.
b.
f.
g.
17.
In the long run, perfectly competitive firms earn:
supernormal profits.
normal profits.
economic profits.
economic losses.
19.
Labor
Total Product
1
9
2
20
3
33
4
40
Reference: Ref 7-4
(Table) The table provides short run total product data for John's Salsa Company. What is the marginal product of the third employee?
13
11
10
33
21. The short run is:
a.the period of time in which the firm cannot change its use of at least one input.
b.up to two years.
c. a year or less.
d. the period of time during which the firm can alter its output
Explanation / Answer
(16) Graph is missing
(17) Normal profit
In long run, perfectly competitive firms earn normal profit (zero economic profit).
(19) 13
Marginal product (MP) = Change in total product / Change in labor
When L = 3, MP = 33 - 20 = 13
(21) (a)
In short run, at least one factor of production is fixed.
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