21. ECO1050 u06q1 Question 21 (Points: 3) Computer memory chips are produced on
ID: 1228775 • Letter: 2
Question
21. ECO1050 u06q1 Question 21 (Points: 3)Computer memory chips are produced on wafers. Each wafer has many separate chips that are separated and sold. The above table shows costs for a perfectly competitive producer of computer memory chips. If the market price of a wafer is $2,400 dollars, what is the firm doing? (3 points).
1. Earning an economic profit of $12,000 an hour.
2. Incurring an economic loss of $2,000 an hour.
3. Incurring an economic loss of $2,800 an hour.
4. Earning a normal profit.
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22. ECO1050 u06q1 Question 22 (Points: 3)
The above figure shows a perfectly competitive firm. If the market price is $10, how does this affect the firm? (3 points).
1. It is incurring an economic loss.
2. It is earning an economic profit.
3. It will immediately shut down.
4. It is earning a normal profit.
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23. ECO1050 u06q1 Question 23 (Points: 3)
The above figure shows a perfectly competitive firm. If the market price is $15 per unit, how does this affect the firm? (3 points).
1. It will produce and earn a normal profit.
2. It will produce and earn an economic profit.
3. It will shut down and minimize its losses.
4. It will produce and incur an economic loss.
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24. ECO1050 u06q1 Question 24 (Points: 3)
Bill owns a lawn care company in Windermere, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed. At this price, how many lawns will Bill mow per week? (3 points).
1. Between 10 and 30.
2. Fifty.
3. Forty.
4. Thirty.
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25. ECO1050 u06q1 Question 25 (Points: 3)
Bill owns a lawn care company in Windermere, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed. If Bill's average total cost curve is ATC, what does his total cost of production equal? (3 points).
1. Zero because Bill shuts down.
2. More than $1,400 per week.
3. Between $1,200 and $1,400 per week.
4. Between $0 and $1,200 per week.
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26. ECO1050 u06q1 Question 26 (Points: 3)
Bill owns a lawn are company in Windermere, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed. If Bill's average total cost curve is ATC, his total economic ____ equals ____. (3 points).
1. Profit, $480 per week.
2. Loss, $800 per week.
3. Profit, $1,280 per week.
4. Loss, $1,280 per week.
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27. ECO1050 u06q1 Question 27 (Points: 3)
What happens in a perfectly competitive industry? (3 points).
1. Exit by existing firms shifts the market supply curve leftward.
2. Entry by new firms shifts the market supply curve rightward.
3. Existing firms make only a normal profit.
4. All of the above answers are correct.
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28. ECO1050 u06q1 Question 28 (Points: 3)
If it does not shut down, when does a perfectly competitive firm produce where marginal cost is equal to the marginal revenue? (3 points).
1. Only in the long run.
2. Only in the short run.
3. Always to maximize its profit.
4. Only if it is not possible to produce where price equals average variable cost.
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29. ECO1050 u06q1 Question 29 (Points: 3)
The cranberry market is perfectly competitive. Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries. As time passes, the supply of cranberries will increase, so that the following will happen. (3 points).
1. The price of cranberries rises still higher and firms’ losses will be eliminated.
2. The price of cranberries falls and firms’ losses will increase.
3. The price of cranberries rises still higher and firms’ profits will not change.
4. The price of cranberries falls and firms’ profits will be eliminated.
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30. ECO1050 u06q1 Question 30 (Points: 3)
If the technology associated with producing fiber optic cable continues to advance, over time, what will happen with the cost of producing fiber optic cable? (3 points).
1. It will increase, firms will earn an economic profit, and new firms will enter the market in the long run.
2. It will decrease, firms will incur an economic loss, and some firms will exit the industry in the long run.
3. It will decrease, firms will earn an economic profit, and new firms will enter the market in the long run.
4. It will increase, firms will incur an economic loss, and some firms will exit the industry in the long run.
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31. ECO1050 u06q1 Question 31 (Points: 3)
Technology reduces the average cost of production, so this will happen in the long run. (3 points).
1. Firms with older plants either exit the market or adopt the new technology.
2. The market price of affected goods and services fall.
3. Perfectly competitive firms produce at a lower average cost.
4. All of the above answers are correct.
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32. ECO1050 u06q1 Question 32 (Points: 3)
The above figure shows three possible average total cost curves. If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC0, each produces 30 units, and the market price of the good is $16 per unit, what does this mean? (3 points).
1. There will be external economies.
2. The firms earn an economic profit of $8 per unit.
3. There will be external diseconomies.
4. Firms will exit the industry and market price rises.
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33. ECO1050 u06q1 Question 33 (Points: 3)
The above figure shows three possible average total cost curves. If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC1, each produces 30 units, and the market price of the good is $16 per unit, what does this mean? (3 points).
1. Firms will exit the industry and market price rises.
2. There will be external diseconomies.
3. There will be external economies.
4. The firms earn a normal profit.
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34. ECO1050 u06q1 Question 34 (Points: 3)
If firms in a perfectly competitive industry are earning an economic profit and new firms enter the industry, what does this mean? (3 points).
1. Consumer surplus decreases.
2. There must be external economies in the long run.
3. There must be external benefits to consumption of the good.
4. The existing firms' economic profits decrease.
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35. ECO1050 u06q1 Question 35 (Points: 3)
When firms in a perfectly competitive market are earning an economic profit, what will happen in the long run? (3 points).
1. The average total cost of production will fall.
2. Firms will exit the market.
3. New firms will enter the market.
4. No new firms will enter the market.
Explanation / Answer
21. ECO1050 u06q1 Question 21 (Points: 3)
Computer memory chips are produced on wafers. Each wafer has many separate chips that are separated and sold. The above table shows costs for a perfectly competitive producer of computer memory chips. If the market price of a wafer is $2,400 dollars, what is the firm doing? (3 points).
sorry no table
22. ECO1050 u06q1 Question 22 (Points: 3)
The above figure shows a perfectly competitive firm. If the market price is $10, how does this affect the firm? (3 points).
sorry no figure
23. ECO1050 u06q1 Question 23 (Points: 3)
The above figure shows a perfectly competitive firm. If the market price is $15 per unit, how does this affect the firm? (3 points).
sorry no figure
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24. ECO1050 u06q1 Question 24 (Points: 3)
Bill owns a lawn care company in Windermere, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed. At this price, how many lawns will Bill mow per week? (3 points).
sorry no figure
25. ECO1050 u06q1 Question 25 (Points: 3)
Bill owns a lawn care company in Windermere, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed. If Bill's average total cost curve is ATC, what does his total cost of production equal? (3 points).
sorry no figure
26. ECO1050 u06q1 Question 26 (Points: 3)
Bill owns a lawn are company in Windermere, Florida, whose cost curves are illustrated in the above figure. The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed. If Bill's average total cost curve is ATC, his total economic ____ equals ____. (3 points).
sorry no figure
27. ECO1050 u06q1 Question 27 (Points: 3)
What happens in a perfectly competitive industry? (3 points).
sorry no figure
28. ECO1050 u06q1 Question 28 (Points: 3)
If it does not shut down, when does a perfectly competitive firm produce where marginal cost is equal to the marginal revenue? (3 points).
3. Always to maximize its profit.
.
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29. ECO1050 u06q1 Question 29 (Points: 3)
The cranberry market is perfectly competitive. Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries. As time passes, the supply of cranberries will increase, so that the following will happen. (3 points).
4. The price of cranberries falls and firms’ profits will be eliminated.
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30. ECO1050 u06q1 Question 30 (Points: 3)
If the technology associated with producing fiber optic cable continues to advance, over time, what will happen with the cost of producing fiber optic cable? (3 points).
.
3. It will decrease, firms will earn an economic profit, and new firms will enter the market in the long run.
Save Answer
31. ECO1050 u06q1 Question 31 (Points: 3)
Technology reduces the average cost of production, so this will happen in the long run. (3 points).
1
4. All of the above answers are correct.
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32. ECO1050 u06q1 Question 32 (Points: 3)
The above figure shows three possible average total cost curves. If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC0, each produces 30 units, and the market price of the good is $16 per unit, what does this mean? (3 points).
sorry no figure
33. ECO1050 u06q1 Question 33 (Points: 3)
The above figure shows three possible average total cost curves. If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC1, each produces 30 units, and the market price of the good is $16 per unit, what does this mean? (3 points).
sorry no figure
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34. ECO1050 u06q1 Question 34 (Points: 3)
If firms in a perfectly competitive industry are earning an economic profit and new firms enter the industry, what does this mean? (3 points).
4. The existing firms' economic profits decrease.
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35. ECO1050 u06q1 Question 35 (Points: 3)
When firms in a perfectly competitive market are earning an economic profit, what will happen in the long run? (3 points).
3. New firms will enter the market.
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