18) The price elasticity of demand faced by an individual wheat farmer would come closest to which...
Question:
18) The price elasticity of demand faced by an individual wheat farmer would come closest to which following value?
A) 0.00007.
B) 0.7.
C) 1.0.
D) 71.0.
E) 71 000.
Answer: E
Comment: An algorithmic version of this question appears in MyEconLab
Diff: 2
Topic: 9.2b. demand curve for perfectly competitive firm
Skill: Applied
User2: Qualitative
Assume the following total cost schedule for a perfectly competitive firm.
Output | TVC ($) | TFC ($) |
0 | 0 | 100 |
1 | 40 | 100 |
2 | 70 | 100 |
3 | 120 | 100 |
4 | 180 | 100 |
5 | 250 | 100 |
6 | 330 | 100 |
TABLE 9-2
47) Refer to Table 9-2. In order to maximize its profits, the firm should continue to produce in the short run even if the market price is less than its ATC as long as the price is greater than or equal to
A) AVC.
B) MC.
C) AFC.
D) TVC.
E) TC
Answer: A
Diff: 2
Topic: 9.3a. profit maximization for perfectly competitive firm
Skill: Applied
User1: Table
User2: Qualitative
48) Refer to Table 9-2. The total cost of producing 6 units of output is
A) $71.67.
B) $100.
C) $230.
D) $330.
E) $430.
Answer: E
Diff: 2
Topic: 9.3a. profit maximization for perfectly competitive firm
Skill: Applied
User1: Table
User2: Quantitative
49) Refer to Table 9-2. If the firm is producing at an output level of 2 units, the ATC is ________ and the AVC is ________.
A) $100; $70
B) $70; $35
C) $50; $50
D) $140; $40
E) $85; $35
Answer: E
Diff: 2
Topic: 9.3a. profit maximization for perfectly competitive firm
Skill: Applied
User1: Table
User2: Quantitative
50) Refer to Table 9-2. This profit-maximizing firm would shut down in the short run if the market price of its output dropped below
A) $35.
B) $40.
C) $70.
D) $90.
E) $100.
Answer: A
Diff: 3
Topic: 9.3a. profit maximization for perfectly competitive firm
51) Refer to Table 9-2. At what price would a profit-maximizing firm earn zero economic profits?
A) $40
B) $70
C) $145
D) $220
E) $430
Answer: B
Comment: An algorithmic version of this question appears in MyEconLab
Diff: 3
Topic: 9.3a. profit maximization for perfectly competitive firm
Skill: Applied
User1: Table
User2: Quantitative
52) Refer to Table 9-2. If the market price were $71, this competitive firm wishing to maximize its profits would
A) produce 2 units of output.
B) produce 6 units of output.
C) produce 5 units of output.
D) not produce because P < minimum of ATC.
E) not produce because P < TFC.
Answer: C
Diff: 3
Topic: 9.3a. profit maximization for perfectly competitive firm
Skill: Applied
User1: Table
User2: Quantitative
Can you help answer these w calculation and explanation?
Skill: Applied
User1: Table
User2: Quantitative