Information for questions 13-19 The following figure shows t…

Information for questions 13-19 The following figure shows the cost curves for a firm in a perfectly competitive market. Only exact answers are accepted. For numeric questions, enter 0, if the question cannot be answered with the information provided. In particular, since the figure does not have a grid, do not try to approximate any numbers using its scale. You can only use the numbers provided on the figure to perform an exact calculation. If you feel that an exact calculation is not possible for a given question, then the correct answer would be 0, or “none of the above.”   The last three questions in this group assume that we have reached the long-run equilibrium, following the process of the previous question. In particular, we’ll assume that the free entry or free exit of firms has stopped, the market is in equilibrium, and demand is sufficient to accommodate many (>100, say) firms.   In the long-run equilibrium, how many firms will operate in the market?

Information for questions 29-33 Suppose that demand for a mo…

Information for questions 29-33 Suppose that demand for a monopolist is given by Q = 4000 – 500 P. The monopolist’s total cost function is given by C = 180 + 5.5Q + Q2/2000. Calculate the price that this monopolist charges. Only exact answer accepted. Enter 0, if the answer cannot be obtained with the information given.

Information for questions 20-28 The following figure shows t…

Information for questions 20-28 The following figure shows the cost curves for a firm in a perfectly competitive market. The curves depicted are marginal cost (MC), average cost (AC), and average variable cost (AVC). Market demand is given by Q=3500 – 5 x p. For the first four questions in this group (20-23, not all in the Canvas version), the firm is operating in the short run, with a market price is $50. For the numeric questions, only the exact answer is accepted, so make sure to double check your reasoning. You can get exact answers with the usual convention that lines cross grid points, and each other, where they seem to cross. Enter 0, if the question cannot be answered at all with the information provided.   Now consider the transition from the short run to the long run. We’ll assume that in the long run many firms identical to the one depicted can enter or exit the market freely. What best describes the transition from the short run to the long run?

Information for questions 13-19 The following figure shows t…

Information for questions 13-19 The following figure shows the cost curves for a firm in a perfectly competitive market. Only exact answers are accepted. For numeric questions, enter 0, if the question cannot be answered with the information provided. In particular, since the figure does not have a grid, do not try to approximate any numbers using its scale. You can only use the numbers provided on the figure to perform an exact calculation. If you feel that an exact calculation is not possible for a given question, then the correct answer would be 0, or “none of the above.”   The last three questions in this group assume that we have reached the long-run equilibrium, following the process of the previous question. In particular, we’ll assume that the free entry or free exit of firms has stopped, the market is in equilibrium, and demand is sufficient to accommodate many (>100, say) firms.   In the long-run equilibrium, what is the market price?

Information for questions 13-19 The following figure shows t…

Information for questions 13-19 The following figure shows the cost curves for a firm in a perfectly competitive market. Only exact answers are accepted. For numeric questions, enter 0, if the question cannot be answered with the information provided. In particular, since the figure does not have a grid, do not try to approximate any numbers using its scale. You can only use the numbers provided on the figure to perform an exact calculation. If you feel that an exact calculation is not possible for a given question, then the correct answer would be 0, or “none of the above.”   For the first three questions in this group, the firm is operating in the short run.   For the firm to operate in the short run (that is, for it not to shut down), the market price must larger than or equal to:

Information for questions 2-4 The following are some equatio…

Information for questions 2-4 The following are some equations that may be useful for this group of questions. The third equation assumes that we graph isoquants and isocost lines with labor on the horizontal axis, and capital on the vertical axis. Marginal Product of Labor:

Information for questions 13-19 The following figure shows t…

Information for questions 13-19 The following figure shows the cost curves for a firm in a perfectly competitive market. Only exact answers are accepted. For numeric questions, enter 0, if the question cannot be answered with the information provided. In particular, since the figure does not have a grid, do not try to approximate any numbers using its scale. You can only use the numbers provided on the figure to perform an exact calculation. If you feel that an exact calculation is not possible for a given question, then the correct answer would be 0, or “none of the above.”   For the first three questions in this group, the firm is operating in the short run.   For the firm to make positive profits, the market price must exceed: