Costs and Market Price
Any typo or mistake is on me. Any questions, email me.
xgu@econ.rutgers.edu
Econ 102: Sec.07 Problem Set #6: Due on Tuesday, 26-April-2011 Note: 1. Do it LOL. Do it independently. Do it carefully. 2. Write your answer on the answer sheet attached (last page). I only collect the answer sheets on Tuesdays, before the class begins. So you can keep the questions. And if you cannot make Tuesday class, please send me your answers via email before Tuesday class ends. Use attachments, please. 3. Good Luck!
1. In a competitive market, the actions of any single buyer or seller will
a. have a negligible impact on the market price. b. have little effect on market equilibrium quantity but will affect market equilibrium price. c. affect marginal revenue and average revenue but not price. d. adversely affect the profitability of more than one firm in the market. Table 14-1 Quantity Total Revenue 0 $0 1 $7 2 $14 3 $21 4 $28
2.
Refer to Table 14-1. For a firm operating in a competitive market, the price is a. $0. b. $7. c. $14. d. $21.
3. Suppose that a firm operating in perfectly competitive market sells 400 units of output at a price of $4 each. Which of the following statements is correct?
Any typo or mistake is on me. Any questions, email me.
xgu@econ.rutgers.edu
i) Marginal revenue equals $4. ii) Average revenue equals $100. iii) Total revenue equals $1,600. a. b. c. d. i) only iii) only i) and iii) only i), ii), and iii)
4.
For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $11. It follows that the a. production of the 100th unit of output increases the firm's profit by $1. b. production of the 100th unit of output increases the firm's average total cost by $1. c. firm's profit-maximizing level of output is less than 100 units. d. production of the 110th unit of output must increase the firm’s profit by less than $1.
5.
Charlene sells cotton candy. The cotton candy
xgu@econ.rutgers.edu
Econ 102: Sec.07 Problem Set #6: Due on Tuesday, 26-April-2011 Note: 1. Do it LOL. Do it independently. Do it carefully. 2. Write your answer on the answer sheet attached (last page). I only collect the answer sheets on Tuesdays, before the class begins. So you can keep the questions. And if you cannot make Tuesday class, please send me your answers via email before Tuesday class ends. Use attachments, please. 3. Good Luck!
1. In a competitive market, the actions of any single buyer or seller will
a. have a negligible impact on the market price. b. have little effect on market equilibrium quantity but will affect market equilibrium price. c. affect marginal revenue and average revenue but not price. d. adversely affect the profitability of more than one firm in the market. Table 14-1 Quantity Total Revenue 0 $0 1 $7 2 $14 3 $21 4 $28
2.
Refer to Table 14-1. For a firm operating in a competitive market, the price is a. $0. b. $7. c. $14. d. $21.
3. Suppose that a firm operating in perfectly competitive market sells 400 units of output at a price of $4 each. Which of the following statements is correct?
Any typo or mistake is on me. Any questions, email me.
xgu@econ.rutgers.edu
i) Marginal revenue equals $4. ii) Average revenue equals $100. iii) Total revenue equals $1,600. a. b. c. d. i) only iii) only i) and iii) only i), ii), and iii)
4.
For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $11. It follows that the a. production of the 100th unit of output increases the firm's profit by $1. b. production of the 100th unit of output increases the firm's average total cost by $1. c. firm's profit-maximizing level of output is less than 100 units. d. production of the 110th unit of output must increase the firm’s profit by less than $1.
5.
Charlene sells cotton candy. The cotton candy