ECON 323 Midterm: ECON 323 TAMU Exam2Fall 15m

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turquoisegnu128

31 Jan 2019

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Avc cannot tell from the information provided none of the above. 1: a firm in a competitive industry has a total cost function of tc = 0. 2q + 5q + 50, whose corresponding marginal cost curve is mc = 0. 4q + 5. If the firm faces a price of 7, what quantity should it sell? a. b. c. d. e. 25 none of the above: and what profit does the firm make at this price? a. b. c. d. e. 25 none of the above: and what profit does the firm make at the new higher price? a. b. c. d. e. 3: a monopolist has a demand curve given by p = 90 - q and a total cost curve given by tc = 30q. The associated marginal cost curve is mc = 30. What is the monopolist"s marginal revenue curve? a. b. c. d. e.

Related Questions

1. If the price faced by a competitive firm is greater than its average variable cost, the firm:

a. should produce the output level where P=MC and it is making a positive profit
b. should produce that output level where P=MC and it is incurring loss
c. should produce that output level where P=MC and it may make a positive profit or incur a loss
d. none of the above

2. When a firm in perfect competition is maximizing profits and produces that level of output where price, marginal revenue, marginal cost, average total cost, long-run marginal cost, and long run average total cost are all equal, the firm:

a. earns a positive economic profit and it serves to signal other competing firms to enter the market
b. earns a positive economic profit that can be continued in the long run
c. earns zero economic profit and is in a long run equilibrium
d. incurs a loss and will shut own in the long run

emeraldrat340

QUESTION 22

For a perfectly competitive firm, profit maximization (or loss minimization) occurs at the level of output at which

	a.	MR = MC.
	b.	MR = AVC.
	c.	P = ATC.
	d.	MR = ATC.

4 points

QUESTION 23

If MR > MC, then

	a.	profits are being maximized.
	b.	the firm is producing too much of the good to be maximizing profits.
	c.	the firm can increase its profits (or minimize its losses) by increasing output.
	d.	the firm must be incurring losses.

4 points

QUESTION 24

If firms are earning zero economic profits, they must be producing at an output level at which

	a.	price minus marginal cost.
	b.	total revenue equals total costs, in other words, normal profits.
	c.	price equals average variable cost.
	d.	marginal revenue equals marginal cost.
	e.	none of the above

4 points

QUESTION 25

In the theory of perfect competition,

	a.	the market demand curve is horizontal.
	b.	the single firm faces a horizontal demand curve.
	c.	the single firm faces a downward-sloping demand curve.
	d.	the market demand curve is downward sloping.
	e.	b and d

azureshark954

The difference between total revenue and total cost is _______________________________

20. . A perfectly competitive firm is definitely earning an economic profit when: ________________

A) MR > MC. B) P > ATC. C) P > MC. D) P > AVC.

-Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits are:_________________________________________________

-For the economist, total cost includes______________________________ for an economic profit

-Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation accounting profit is:_______________________________________________________________

-Identify the following market structure

-A market with no close substitutes ____________________________________

-A market that focuses on differentiated products_______________________

-A market with one seller______________________________

-A market where there is collusion________________________

-A market that involves the auto industry_____________________

-A market where you are a price taker_____________________________

-A market where advertising is a strong incentive____________________

Why can fixed costs be considered as an entry fee?

rubypig230

ECON 323 Midterm: ECON 323 TAMU Exam2Fall 15m

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