True or false: In a constant- cost industry, a tax of a constant, fixed amount on each unit of output sold will not affect the amount of output sold by a perfectly competitive firm in the long run. Explain.
Answer to relevant QuestionsTrue or false: Consumer surplus is the area between the demand curve and the price line. For a perfectly competitive firm the demand curve equals the price line. Thus, a perfectly competitive industry produces no consumer ...Each of 1000 identical firms in the competitive peanut butter industry has a short- run marginal cost curve given by SMC = 4 + QIf the demand curve for this industry is P = 10 - 2Q/1000What will be the short- run loss in ...In the short run, a perfectly competitive firm produces output using capital services (a fixed input) and labor services (a variable input). At its profit-maximizing level of output, the marginal product of labor is equal to ...A firm in a competitive industry has a total cost function of TC = 0.2Q2 - 5Q + 30, whose corresponding marginal cost curve is MC = 0.4Q - 5. If the firm faces a price of 6, what quantity should it sell? What profit does the ...The New York Times, a profit-maximizing newspaper, faces a downward-sloping demand schedule for advertisements. When advertising for itself in its own pages (for example, an ad saying “Read Maureen Dowd in the Sunday ...
Post your question