ECON 2100 Quiz: ECON 2100 Kennesaw State Quiz4 ECON2100 Summer2009 Section04
Document Summary
Problem solving/short answer question: min = min = ______________ is a market structure in which there is one single seller of a unique good (with no close substitutes ) and in which there are barriers to entry which prevent rival firms from entering the market. Last month he earned total revenue of ,500. Production were ,500, while his variable costs of production were ,000. Jason realized a producer"s surplus of ,500 last month. Consider a firm operating in a perfectly competitive market with costs of production as illustrated below: In a perfectly competitive market, marginal revenue is simply equal to price (in this case, . 50 at every level of output). Since profit is maximized by producing up to the point where mr=mc, it follows that at a price of . 50 per unit, the firm would want to produce/sell 950 units.
