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Florida International University - ECO 2023 CHAPTER 12 1)Marginal revenue is               Refer to Figure 12-2

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Florida International University - ECO 2023

CHAPTER 12

1)Marginal revenue is

 

 

 

 

 

 

 

2. Refer to Figure 12-2. Suppose the firm is currently producing Q2 units. What happens if it expands output to Q3 units?
    

 

 

3. The marginal revenue curve for a perfectly competitive firm
    

 

4. Refer to Figure 12-10. The firm's short-run supply curve is its
    

 

5. If a firm shuts down in the short run it will
    

                

6. Refer to Figure 12-14. Consider a typical firm in a perfectly competitive industry which is incurring short-run losses. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
    

 

7. For a firm in a perfectly competitive market, price is
    

 

8. Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21. Which of the following will happen?
    

 

9. Refer to Figure 12-4. If the market price is $30, should the firm represented in the diagram continue to stay in business?
    

 

10. For a perfectly competitive firm, average revenue is equal to
     

 

11. Refer to Figure 12-4. If the market price is $30 and the firm is producing output, what is the amount of the firm's profit or loss?
     

 

12. Refer to Figure 12-11. Suppose the prevailing price is $20 and the firm is currently producing 1,350 units. In the long-run equilibrium, the firm represented in the diagram
     

 

13. Producing where marginal revenue equals marginal cost is equivalent to producing where
     

 

14. Refer to Figure 12-10. The total cost at the profit-maximizing output level equals
     

 

15. Both individual buyers and sellers in perfect competition
     

 

16. Which of the following is not true for a firm in perfect competition?
     

 

17. For a perfectly competitive firm, which of the following is not true at profit maximization?
     

 

18. In perfect competition
    the market demand curve is downward sloping while demand for an

 

19. Refer to Figure 12-1. If the firm is producing 700 units
     

 

20. Refer to Figure 12-2. The firm breaks even at an output level of
     

 

21. Refer to Table 12-1. The firm will not produce in the short run if the output price falls below
     

 

22. Refer to Figure 12-2. What happens if the firm produces more than Q4 units?
     

 

23. A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixed cost of production is $20,000. The price of each good is $10. Should the firm continue to produce in the short run?
     

 

24. A very large number of small sellers who sell identical products imply
     
25. Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-maximizing quantity?
     

 

26. Refer to Figure 12-10. At the profit-maximizing output level, the firm earns
     

 

27. Refer to Figure 12-10. Total revenue at the profit-maximizing level of output is
     

 

28. Refer to Table 12-2. What is Margie's total revenue if she sells 250 pounds of apples?
     

 

29. If a perfectly competitive firm's price is less than its average total cost but greater than its average variable cost, the firm
     

 

30. If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, the firm
     
31. Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost?
     

 

32. If the market price is $40 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
     

 

33. Refer to Table 12-1. If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss?
     

 

34. An individual seller in perfect competition will not sell at a price lower than the market price because
     

 

35. Refer to Table 12-1. If the market price of each camera case is $8, what is the firm's total revenue?
     

 

 

 

 

36. Refer to Table 12-2. How many pounds of apples should Margie sell to maximize her profit?.

 

37. A perfectly competitive firm's supply curve is its
     

 

38. Refer to Table 12-1. What is the fixed cost of production?
     

 

39. Assume that after the record year for U.S. farm income in 2013, farmers are expected to break even in 2014. This means that at the quantity being produced in 2014
     

 

40. Which of the following is not a characteristic of a perfectly competitive market structure?
     

 

41. Refer to Figure 12-2. What is the amount of profit if the firm produces Q2 units?
     
42. Refer to Table 12-1. Suppose the fixed cost of production rises by $500 and the price per unit is still $8. What happens to the firm's profit-maximizing output level?
     

 

43. Refer to Figure 12-4. What is the amount of its total fixed cost?
     

 

 

44. Refer to Figure 12-12. Consider a typical firm in a perfectly competitive industry that makes short-run profits. Which of the diagrams in the figure shows the effect on the industry as it transitions to a long-run equilibrium?
     

 

45. The supply curve of a perfectly competitive firm in the short run is

 

46. Profit is the difference between
     

 

47. What is always true at the quantity where a firm's average total cost equals average revenue?
     

 

48. The price of a seller's product in perfect competition is determined by
     

 

49. Refer to Figure 12-4. If the market price is $30, the firm's profit-maximizing output level is
     

 

50. If the market price is $25, the average revenue of selling five units is