1

For each example below, identify which statement is not characteristic of a perfectly competitive industry. O A. One firm produces a large portion of the industry's total output. O B. There are many firms in the industry. O C. Their products are indistinguishable. O D. Firms can easily exit and enter the industry. O A. There are many buyers and sellers in the industry. O B. Consumers have equal information about the prices of firms' products. O C. The products differ slightly in quality from firm to firm. O D. Many diners compete in a city. O A. Many taxicabs compete in a city. O B. The city's government requires all taxicabs to provide identical service. O C. Taxicabs are virtually identical, and all drivers must wear a designated uniform. O D. The government also limits the number of taxicab companies that can operate within the city's boundaries.'he campus barber faces stiff competition from the large number of shops that surround the campus area, and for all practical purposes the market is perfectly competitive. The shop charges $6 for a haircut and serves 25 people a day. 'he shop is open 5 days a week. "he weekly total revenue is $|:|. (Enter your response as a whole number) "he average revenue per haircut is $D. (Enteryour response as a whole number.) "he marginal revenue per haircut is 99D. {Enferyosr response as a whole number) Suppose that the perfectly competitive firm with the costs and revenues shown in the figure to the right is contemplating whether or not to produce 12 units of output. If the firm were to produce the 12th unit and, in doing so, increase its hourly total costs to $70 from $56, what would be its marginal cost? Would producing 12 units maximize the firm's profits? What would be the firm's total revenues per hour? What would be its hourly economic profits? MC If it were to produce the 12th unit, the firm's marginal cost would be MC = $ per unit. Since the market price is P = $ per unit and this price the firm's marginal revenue, marginal $5 cost marginal revenue, and producing the 12th unit satisfy Price and Marginal Cost ($ per unit) d the profit-maximizing rule. The firm's total revenue would equal $ per hour and economic profits would equal S per hour. (Enter your responses as whole numbers and include a minus sign if necessary.) C.. . 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Output (units per hour)The following table shows the total cost schedule for a perfectly competitive firm. The current price in this industry is $8. Fill in the marginal revenue and marginal cost columns of the table. (Enter your response as an integer.) Output (units) Total Cost Marginal Revenue Marginal Cost (Q TC (MR) (MC) O 20 22 26 32 JIA WN . 40 50 A profit-maximizing firm will produce units. (Enter your response as an integer.)Consider the figure to the right. Suppose that the price per unit corresponding to the position of d, is $5.80 per unit and that the quantity at point E, is exactly 6 units per hour. Calculate total revenues, total costs, and economic profits at point E, and explain why it is called the short-run break-even point. Total revenues equal $ per hour, total costs equal $ per hour, and economic profits equal $ per hour. (Enter your responses rounded to two decimal places.) ATC Point E, is called the short-run break-even point because, at this point, the firm's accounting profits MC its relevant opportunity costs so that its economic profit is Price and Marginal Cost ($ per unit) AVC $5.80 d1 E1 Output (units per hour)The following table depicts the daily output, price, and costs of a monopoly dry cleaner located near the campus of a remote university town. Compute revenues and profits at each output rate. (Enter dollars and cents and include minus signs where necessary. Do not include the $ symbol in your answer.) Output Price per (suits cleaned) Suit ($) Total Costs ($) Total Revenue ($) Profit ($) 0 8.00 3.00 7.50 6.00 N - 7.00 8.50 3 6.50 10.50 4 6.00 11.50 5.50 13.50 5.00 16.00 4.50 19.00 4.00 24.00Answer the question on the basis of the following table showing the demand schedule facing a monopolist. Assume that the marginal cost is 340. Quantity Price Demanded $50 10 $45 20 $40 30 $35 40 $30 50 The profitmaximizing monopolist will sell at a price of $ and a quantity of units. {Enteryour responses as whole numbers.) The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) Price per Unit Marginal Revenue Marginal Cost (Q (P) (MR (MC) 40 35 5 30 10 3 25 15 20 20 15 25 A profit-maximizing monopolist will produce units and set a price of $Consider the following demand and cost data for a pure monopolist. The profit-maximizing price for the monopolist is . $5.35. . $4.90. . $4.50. . $5.85. Demand Cost Quantity Price Demanded Output Total Cost $7.50 3 3 $100 $7.00 4 4 $8.00 $6.50 5 5 $8.50 $5.85 5 6 $9.50 $5.35 7 7 $11.00 $4.90 8 8 $13.00 $4.50 9 9 $16.00