AIR 33dB M EARPLUGS SZNISH 29dB, CLASS 5 ORDED Scenario 8 Market demand is given as Qd = 1250 - 10P. Market supply is given as Qs = 15P. Each identical firm has MC = Q and ATC = 0.5Q + (20/Q) (ATC is minimized at Q = 6.32). 19. Refer to Scenario 8. What is each firm's profit/loss in the short run? a. -$1845 b. -$985 C. $1230 d. $2400 20. Refer to Scenario 8. How many firms are there in the short run? a. 40 b. 20 C. 50 d. 15 21. Refer to Scenario 8. How many firms are there in the long run? a. 80.85 b. 40.45 C. 187.78 d. 30.55 22. Refer to Scenario 8. When will this firm exit the industry? a. If price falls below $12.38 b. If price falls below $25 c. If the price falls below $30 d. If price falls below $6.32 23. When will buyers of a product pay the majority of a tax placed on a product? a. when the tax is placed on the seller of the product b. when the tax is placed on the buyer of the product c. when demand is more elastic than supply d. when supply is more elastic than demand Page 8 of 19Figure 8 Diagram A $ MC ATC AVC AR Q Diagram B P MC ATC MR D Q 24. Refer to Figure 8. The firm's short-run supply curve in diagram A is a. the portion of the AVC curve that lies above AR b. the portion of the MC curve that lies above AR c. the portion of the MC curve that lies above ATC d. the portion of the MC curve that lies above AVC 25. Refer to Figure 8. What is depicted in diagram B? a. long-run equilibrium for a perfectly competitive industry b. long-run equilibrium for an oligopolistic industry c. short-run equilibrium for an oligopolistic industry d. long-run equilibrium for a monopolistically competitive industry Page 9 of RSE