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?
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?
Related textbook solutions
Related questions
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 |
