econ 2100 chapter 14 with
complete verified solutions
A seller in a competitive market - answer All of the above are correct (can
sell all he wants at the going price, so he has little reason to charge less; will
lose all his customers to other sellers if he raises his price; considers the
market price to be a "take it or leave it" price)
Which of the following statements regarding a competitive firm is correct? -
answer For all firms, average revenue equals the price of the good
For a competitive firm, - answer average revenue equals marginal revenue
If a competitive firm is currently producing a level of output at which
marginal cost exceeds marginal revenue, then - answer decreasing output
would increase the firm's profit
Max sells maps. The map industry is competitive. Max hires a business
consultant to analyze his company's financial records. The consultant
recommends that Max increase his production. The consultant must have
concluded that Max's - answer marginal revenue exceeds his marginal cost
Profit-maximizing firms in a competitive market produce an output level
where - answer marginal cost equals marginal revenue
Mrs. Smith operates a business in a competitive market. The current market
price is $8.50. At her profit maximizing level of production, the average
variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should
- answer continue to operate in both the short run and long run
complete verified solutions
A seller in a competitive market - answer All of the above are correct (can
sell all he wants at the going price, so he has little reason to charge less; will
lose all his customers to other sellers if he raises his price; considers the
market price to be a "take it or leave it" price)
Which of the following statements regarding a competitive firm is correct? -
answer For all firms, average revenue equals the price of the good
For a competitive firm, - answer average revenue equals marginal revenue
If a competitive firm is currently producing a level of output at which
marginal cost exceeds marginal revenue, then - answer decreasing output
would increase the firm's profit
Max sells maps. The map industry is competitive. Max hires a business
consultant to analyze his company's financial records. The consultant
recommends that Max increase his production. The consultant must have
concluded that Max's - answer marginal revenue exceeds his marginal cost
Profit-maximizing firms in a competitive market produce an output level
where - answer marginal cost equals marginal revenue
Mrs. Smith operates a business in a competitive market. The current market
price is $8.50. At her profit maximizing level of production, the average
variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should
- answer continue to operate in both the short run and long run
