Consider the below graph. To force this firm to produce the efficient level of output, the government should impose a tax of15HXP = 100Select one:Price per unita. more than $15.00 per bag of fertilizer.Ob$5.00 per bag of fertilizer.O c.$15.00 per bag of fertilizer.O d. $10.00 per bag of fertilizer.50 60Bags offertilizerMSCMC·ដ្ឋ

The socially efficient level of output is the output at which the marginal social costs of…

Consider the below graph. To force this firm to produce the efficient level of output, the government should impose a tax of Price per unit Select one: O a. more than $15.00 per bag of fertilizer. O b. $5.00 per bag of fertilizer. O c. $15.00 per bag of fertilizer. O d. $10.00 per bag of fertilizer. 15 10 0 50 60 Begs of fertilizer MSC MC 9

Consider the below graph. To force this firm to produce the efficient level of output, the government should impose a tax of Price per unit Select one: O a. more than $15.00 per bag of fertilizer. O b. $5.00 per bag of fertilizer. O c. $15.00 per bag of fertilizer. O d. $10.00 per bag of fertilizer. 15 10 0 50 60 Begs of fertilizer MSC MC 9

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 6SCQ: A firms marginal cost curve above the average variable cost curve is equal to the films individual...

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The city govermment is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. O Average total cost will increase. O Marginal cost will increase. O Average variable cost will remain unchanged. O Average fixed cost will increase. Which of the following statements is true as a result of the per-burger tax? Check all that apply. OAverage total cost will increase. O Average variable cost will increase. O Average fixed cost will remain unchanged. O Marginal cost will remain unchanged. 52°F Mostly cloudy Cop 441 DI & 8.
.A fisher sells salmon in a perfectly competitive market and faces a price of $5 per kg at possible weekly outputs of between O and 5000 kg. a. What is the fişher's marginal revenue in this output range? b. Because the fisher operates in a perfectly competitive market, how are marginal revenue and price related? C. Draw the fisher's marginal revenue curve on a graph. Plot only the endpoints at O and 5000 kg to draw the curve.
In the graph above, at what quantity does marginal revenue equal zero? Price, 50 Marginal Revenue ($ per 40 thousand gallons) 2아 10 D, Quantity ('000 gal. 14 per day) 2. 4 8 10 12 -10 -20 OA. 4 OB. 5 OC. 6 OD. 10 O E. 50
Which of the above shows the corrett relationship between demand and marginal revenue? MR Quantity (A) MR Quantity (B) MR MR Quantity (C) Quantity (D) Select one: O A. B о В. D О С. А O D. C
Suppose that bicycles are produced by a perfectly competitive, constant-cost industryWhich of the following will have a larger effect the long-run price of bicycles: a government program to advertise the health benefits of bicyclingor (2) a government program increases the demand for steel, an input in the manufacture of bicycles that is produced in an increasing cost industry ? O. Option 1: shifts the demand curve out and increases the price. O. Option 2: shifts the supply curve up and increases the price O. Option 2: it shifts the demand curve up and increases the quantity. O. Option 2: shifts the supply curve up and increases the quantity.
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC АТС of Ear Buds ($) ($) 9.00 - 10 2.00 5.50 15 2.44 4.48 20 3.56 4.25 25 4.50 4.30 30 5.02 4.42 35 5.96 4.64 40 8.56 5.13 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$ d. Now assume the market price is $5.50 per pair, and Buddies produces the…
Omari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Omari initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Omari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Omari must lower the price from $160,000 to $120,000 per truck. Notice that Omari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000. PRICE (Thousands of dollars per fire engine) ARBS228882R 200 140 2 Demand 5 QUANTITY (Fire engines) $…
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Mo increase production from 5 O True O False 6 fire engines because the dominates in this scenario. True or False: If alternatively Mo's HookNLadder were a competitive firm and $160,000 were the market price for an engine, decreasing its price from $160,000 to $120,000 would result in a decrease in the production quantity, but an increase in total revenue.
Karim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Karim initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Karim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Karim must lower the price from $60,000 to $40,000 per truck. Notice that Karim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $40,000 rather than $60,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. PRICE (Thousands of dollars per fire engine) A 82 8288 289 RO 220 200 100 100 140 120 100 Demand 3 A A A ΔΔ 0 5…
The figure below shows the supply and the demand for a good (left) and the cost curves of an individual firm in this market (right). Assume that all firms in this market, including the potential entrants, have identical cost curves. Initially, the market is in equilibrium at point A. Price 6 Cost 17 D 8 10 12 Quantity ATC O the price is $1.00 and the quantity sold is 6 units O the price is $3.00 and the quantity sold is 2 units O the price is $2.00 and the quantity sold is 2 units O the price is $2.00 and the quantity sold is 4 units Quantity Refer to the figure above. Suppose that the market has reached the long-run equilibrium. Then, due to news of the product's defects and recall, the demand falls by 2 units at each price. The market will tend toward the new long run equilibrium where