Question : 41) Farmer Anna producing tomatoes in a perfectly competitive market. : 1384224

 

41) Farmer Anna is producing tomatoes in a perfectly competitive market. In Year 1 she sells 4000 bushels of tomatoes at a price of $12.00 each. In Year 2 she sells 4800 bushels at $13.00 each. In Year 2, her average revenue is ________ and her marginal revenue is ________.

A) $13.00; $1.00

B) $12.50; $12.50

C) $13.00; $13.00

D) $12.00; $12.00

E) $12.00; $1.00

42) Suppose XYZ Corp. is producing and selling disposable wooden chopsticks in a perfectly competitive market. The market price is $0.04 per unit and the firm is currently producing 1 million units per month. The firm’s total revenue is ________ per month. The firm’s marginal revenue is ________.

A) $25 000; $0.04

B) $40 000; $0.04

C) $15 000; $0.015

D) $40 000; $0.015

E) $40 000; $0.025

43) Suppose XYZ Corp. is producing and selling disposable wooden chopsticks in a perfectly competitive market. The market price is $0.04 per unit and the firm is selling 1 million units per month. Now suppose the firm increases its stated price to $0.05 per unit. According to the theory of perfect competition, the result will be:

A) total revenue for this firm will increase, but by less than $10 000 per month.

B) total revenue will increase from $40 000 to $50 000 per month.

C) total revenue will decrease from $50 000 to $40 000 per month.

D) total revenue for this firm will fall dramatically, perhaps to zero.

E) no change in the firm’s total revenue.

 

 

 

 

 

 

 

 

 

 

 

 

 

44) Refer to Table 9-1. If this firm is producing 1250 mousetraps, its total revenue is ________, its average revenue is ________ and its marginal revenue is ________.

A) $5; $5; $5

B) $6250; $250; $5

C) $1750; $250; $5

D) $5000; $5; $250

E) $6250; $5; $5

45) Refer to Table 9-1.  Suppose this firm is currently selling 1750 mousetraps at the market price of $5.  If the firm raises its price to $6, its total revenue will be

A) $0.

B) greater than or equal to $1750.

C) greater than or equal to $6250.

D) $10 500.

E) greater than $10 500.

46) Refer to Table 9-1.  Suppose this firm is currently selling 1750 mousetraps at the market price of $5.  If the firm raises its price to $6, it’s average revenue will be

A) $0.

B) $5.

C) $6.

D) between $5 and $6.

E) greater than $6.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

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.

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

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.