ECON E1010 - HWK 3 - Spring 2021 - Word Zakir Hashmi X File Home Insert Design Layout References Mailings Review View Help PDF Reader 10 Acrobat . Tell me what you want to do Share 12. The table shows a short-run situation is evident from A) the linear marginal revenue function. 8. In a constant-cost industry, price always equals B) the constant price. A) LRMC and minimum LRAC. C) the increasing marginal cost. B) LRMC and LRAC, but not necessarily minimum LRAC. D) the presence of positive costs at Q = 0. ") minimum LRAC, but not LRMC. E) the absence of marginal values at Q = 0. D) LRAC and minimum LRMC E) minimum LRAC and minimum LRMC. 13. Ronny's Pizza House operates in the perfectly competitive local pizza market. If the price of pizza For questions, refer to the table given below: cheese increases (ceteris paribus), what is the expected impact on Ronny's profit-maximizing output decision? P TR MR TC MC A) Output increases to cover the higher input cost $30 $0 $15 B) Output increases because the marginal cost curve shifts upward 1 $30 $30 $30 $25 $10 C) Output decreases because the marginal cost curve shifts upward $30 $60 $30 $40 $15 D) Output decreases because the price of pizza must also increase $30 $90 $30 $60 $20 $30 $120 $30 $85 $25 $30 $150 $30 $115 $30 14. In a constant-cost industry, an increase in demand will be followed by $30 $180 $30 $150 $35 A) no increase in supply. B) an increase in supply that will not change price from the higher level that occurs after the demand shift. 9. That the firm is perfectly competitive is evident from its C) an increase in supply that will bring price down to the level it was before the demand shift. A) increasing marginal cost. D) an increase in supply that will bring price down below the level it was before the demand shift. B) increasing total cost. E) a decrease in demand to keep price constant. C) zero economic profits. D) constant marginal revenue E) absence of marginal values at Q = 0. 15. Short-run supply curves for perfectly competitive firms tend to be upward sloping because: A) there is diminishing marginal product for one or more variable inputs. 10. The maximum profit available to the firm is B) marginal costs increase as output increases. A) $20 C) marginal fixed costs equal zero. B) $30 D) A and B are correct. C) $35. E) B and C are correct. D) $155. E) $180 11. Average cost for the firm in the table A) cannot be determined from the information given. B) is upward-sloping for all output values shown. C) is constant for all output values shown. D) is downward-sloping for all output values shown. E) is U-shaped Page 5 of 9 1467 words English (United States) - + 80% Type here to search w 27% 10:07 AM 6 0 4X ENG E 4/19/2021