QUESTION 13 1 poires Save Answer Suppose that the market lor candy canes operate
ID: 1106909 • Letter: Q
Question
QUESTION 13 1 poires Save Answer Suppose that the market lor candy canes operates under condtions of perlect competition that initially in long run equilbrium, that the price of each candy cane is $0 10 at the market demand curve is downsard-sloping The price of sugar ises, ncreasing the marginal and average total cost of producing candy canes by S0 05 there are no ether changes in production costs Once all of the adjunlments to long-run equilerium have been made. the price of candy canes wll equal C The question is impossible to anpwer withost ms ertered ardor lan rowingactly how many the industry D 50 15 QUESTION 14 1 points re Answer The equlibsum price of a guidsbok is535 m the perfectly The equilbrium price of a guidelbook is $35 in the perfectly compestive puidebeok industry Our firn produces 10.000 an average total cost of $38, maginal cost 0wfrm should of $30-nd average variable cost of $30 OA shut dam, because the 1rm is losing money peadace mro gadabooks because the next quidebook preduced increases profit by 35 C. ease ne prica of gidebooks because te frm osing mone D koop output the same because the produding at minmun aveage varlatble cos QUESTION 15 1 pohts Save Answer The slope ef the otalevenue cerve is () A net sevenue egal to magnalseverue and varies under perked C marginal cont G D equal to marginal revenue and is constant undor perfect compettion QUESTION 16 1 points Save Answer Wenain is a taomer and in the short ruh she praduces 100 100 Wengie's A average variable cost is $1 25 C avage fxed cost is $1.50 D ecnonc proft is $250 QUESTION 17 1 points save Answer Cick Save and Sa breit to sae sbt Cek Sare all Anaeers to sove all Save All AnrSave and Submit 11/11/2017Explanation / Answer
13) Option A
This is perhaps because before the price change, the market had a long run equilibrium. Hence long run equilibrium price in competitive industry is always same and remains fixed. Hence price will always return to $0.10 in the long run
14) Option B
Since price is $35 and marginal cost is $30, and AVC is also $30, firm must produce more output as it wiill increase the profit, Since the price is greater than AVC, it should not shut down
15) Option D
We know that TR = P x Q. And MR = dTR/dQ, the slope of TR. Also since price is fixed, slope is also fixed
16) Option B
We have the information
This implies, we have, AFC = 100/1 = 1, TC = 1.75*100 = 175, Profit = 450 - 175 = 275 or 2.75 per bushel . Hence profit is 2.75 per bushel
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.