Question :
21.RefertoTable14-15.Whatisthelowestpriceatwhichthisfirmwouldoperateintheshortrun?
a.$3.
b.$4.
c.$5.
d.$6.
Table14-15-a
: 1261543
21.RefertoTable14-15.Whatisthelowestpriceatwhichthisfirmwouldoperateintheshortrun?
a.$3.
b.$4.
c.$5.
d.$6.
Table14-15-a
Quantity
TotalCost
0
$4
1
$10
2
$16
3
$21
4
$24
5
$35
6
$48
22.RefertoTable14-15-a.Whatisthelowestpriceatwhichthisfirmwouldoperateintheshortrun?
a.$5.
b.$6.
c.$7.
d.$8.
Figure14-12
23.RefertoFigure14-12.Ifthefigureinpanel(a)reflectsthelong-runequilibriumofaprofit-maximizingfirminacompetitivemarket,thefigureinpanel(b)mostlikelyreflects
a.perfectlyinelasticlong-runmarketsupply.
b.perfectlyelasticlong-runmarketsupply.
c.theentryoffirmsintotheindustrywhensomeresourcesusedinproductionareavailableonlyinlimitedquantities.
d.thefactthatzeroprofitscannotbesustainedinthelongrun.
24.Inacompetitivemarketwithidenticalfirms,
a.anincreaseindemandintheshortrunwillresultinanewpriceabovetheminimumofaveragetotalcost,allowingfirmstoearnapositiveeconomicprofitinboththeshortrunandthelongrun.
b.firmscannotearnpositiveeconomicprofitineithertheshortrunorlongrun.
c.firmscanearnpositiveeconomicprofitinthelongrunifthelong-runmarketsupplycurveisupwardsloping.
d.freeentryandexitintothemarketrequiresthatfirmsearnzeroeconomicprofitinthelongruneventhoughtheymaybeabletoearnpositiveeconomicprofitintheshortrun.
25.Whennewfirmsenteraperfectlycompetitivemarket,
a.economicprofitsofexistingfirmswillcontinuetobezero.
b.enteringfirmswillearnzeroeconomicprofituponentryintothemarket.
c.existingfirmsmayseetheircostsriseifmorefirmscompeteforlimitedresources.
d.priceswillriseasexistingfirmsraisepricestokeepnewfirmsoutofthemarket.
26.Supposeacompetitivemarketiscomprisedoffirmsthatfaceidenticalcostcurves.Thefirmsexperienceanincreaseindemandthatresultsinpositiveprofitsforthefirms.Whichofthefollowingeventsarethenmostlikelytooccur?
a.(i)and(ii)only
b.(i)and(iii)only
c.(ii)and(iii)only
d.(i),(ii)and(iii)
27.Intheshortrun,thereare500identicalfirmsinacompetitivemarket.Thefirmsdonotuseanyresourcesthatareavailableinlimitedquantities,andeachofthemhasthefollowingcoststructure:
Output
TotalCost
0
$0
1
$10
2
$12
3
$15
4
$24
5
$35
Thelong-runsupplycurveforthismarketis
a.positivelyslopedforallpricesabove$10.
b.horizontalatapriceof$5.
c.horizontalatapriceof$6.
d.horizontalatapriceof$7.
28.Intheshortrun,thereare500identicalfirmsinacompetitivemarket.Thefirmsdonotuseanyresourcesthatareavailableinlimitedquantities,andeachofthemhasthefollowingcoststructure:
Output
TotalCost
0
$0
1
$10
2
$12
3
$15
4
$24
5
$35
Whichofthefollowingisapointonthelong-runsupplycurve?
a.P=$10,Q=500.
b.P=$6,Q=1,000.
c.P=$5,Q=500.
d.P=$5,Q=1,500.
29.Intheshortrun,amarketconsistsof100identicalfirms.Themarketpriceis$8,andthetotalcosttoeachfirmofproducingvariouslevelsofoutputisgiveninthetablebelow.Whatwilltotalquantitysuppliedbeinthemarket?
Quantity
TotalCosts
0
$1
1
$7
2
$14
3
$22
4
$31
5
$41
a.200units
b.300units
c.400units
d.500units
30.Intheshortrun,amarketconsistsof100identicalfirms.Themarketpriceis$6,andthetotalcosttoeachfirmofproducingvariouslevelsofoutputisgiveninthetablebelow.Whatwilltotalquantitysuppliedbeinthemarket?
Quantity
TotalCosts
0
$1
1
$7
2
$12
3
$21
4
$32
5
$45
a.100units
b.200units
c.300units
d.400units