- Question 19 If The Market Price For The Perfectly Competitive Firm Represented In Figure 1 5 Is 4 Figure 1 5 A The 1 (34.18 KiB) Viewed 19 times
- Question 19 If The Market Price For The Perfectly Competitive Firm Represented In Figure 1 5 Is 4 Figure 1 5 A The 2 (50.42 KiB) Viewed 19 times
- Question 19 If The Market Price For The Perfectly Competitive Firm Represented In Figure 1 5 Is 4 Figure 1 5 A The 3 (50.42 KiB) Viewed 19 times
- Question 19 If The Market Price For The Perfectly Competitive Firm Represented In Figure 1 5 Is 4 Figure 1 5 A The 4 (18.29 KiB) Viewed 19 times
Question 19 If the market price for the perfectly competitive firm represented in Figure 1.5 is $4... Figure 1.5 PRICE OR CONT Gadge ATC Ave QUANTITY a. The firm should produce 13 units. b. The firm should shut down. c. The firm will make an economic loss in the long-run. d. The firm should continue to produce though it will not recover its variable costs. Question 20 It was reported that General Motors planned to essentially quit making cars and trucks in the United States for nine weeks from mid-May through July 2009 and Omaha Power planned to close one of its nuclear plants permanently. Based on these particular news reports, what is the difference between GM's and Omaha Power's decisions? a. Omaha Power was trying to get rid of excess inventory, and GM was trying to become more efficient. b. GM was trying to maximise profits while Omaha Power was trying to minimise losses. c. GM's decision to idle plants was a short-run shutdown decision. Omaha Power, by contrast, made a long-run decision to exit a specific market. d. There is no difference between GM's and Omaha Power's decisions; both were trying to get rid of excess inventory.
Question 21 The perfectly competitive firm represented in Table 1.3 will produce a profit maximising quantity of... Table 1.3 a. 1 b. 3 c. 4 d. 5 Quantity 1 2 3 4 Price $500 $450 $400 $350 $300 Total Cost $400 $650 $950 $1,300 $1,700