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Consider a Competitive Industry and a Price-Taking Firm That Produces

Question 64

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Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: Supply: where Q is quantity,P is the price of the product,M is income,and is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and for 2015: The manager also estimates the average variable cost function to be Total fixed costs will be $2,000 in 2015.The minimum value of average variable cost is $_____. A) $0.50 B) $0.75 C) $0.975 D) $1.00 E) $2.15 Supply: Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: Supply: where Q is quantity,P is the price of the product,M is income,and is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and for 2015: The manager also estimates the average variable cost function to be Total fixed costs will be $2,000 in 2015.The minimum value of average variable cost is $_____. A) $0.50 B) $0.75 C) $0.975 D) $1.00 E) $2.15 where Q is quantity,P is the price of the product,M is income,and Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: Supply: where Q is quantity,P is the price of the product,M is income,and is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and for 2015: The manager also estimates the average variable cost function to be Total fixed costs will be $2,000 in 2015.The minimum value of average variable cost is $_____. A) $0.50 B) $0.75 C) $0.975 D) $1.00 E) $2.15 is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: Supply: where Q is quantity,P is the price of the product,M is income,and is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and for 2015: The manager also estimates the average variable cost function to be Total fixed costs will be $2,000 in 2015.The minimum value of average variable cost is $_____. A) $0.50 B) $0.75 C) $0.975 D) $1.00 E) $2.15 for 2015: Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: Supply: where Q is quantity,P is the price of the product,M is income,and is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and for 2015: The manager also estimates the average variable cost function to be Total fixed costs will be $2,000 in 2015.The minimum value of average variable cost is $_____. A) $0.50 B) $0.75 C) $0.975 D) $1.00 E) $2.15 The manager also estimates the average variable cost function to be Consider a competitive industry and a price-taking firm that produces in that industry.The market demand and supply functions are estimated to be: Demand: Supply: where Q is quantity,P is the price of the product,M is income,and is the input price.The manager of the perfectly competitive firm uses time-series data to obtain the following forecasted values of M and for 2015: The manager also estimates the average variable cost function to be Total fixed costs will be $2,000 in 2015.The minimum value of average variable cost is $_____. A) $0.50 B) $0.75 C) $0.975 D) $1.00 E) $2.15 Total fixed costs will be $2,000 in 2015.The minimum value of average variable cost is $_____.


A) $0.50
B) $0.75
C) $0.975
D) $1.00
E) $2.15

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