Question

A perfectly competitive firm in the short run has a minimum AVC=$4 and a minimum ATC=$5....

A perfectly competitive firm in the short run has a minimum AVC=$4 and a minimum ATC=$5. What is the price at which the firm will break even?

a.

$2

b.

$5

c.

$3

d.

$4

Homework Answers

Answer #2

answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a perfectly competitive firm short run, has minimum AVC=$3 and minimum ATC = $5. if price...
a perfectly competitive firm short run, has minimum AVC=$3 and minimum ATC = $5. if price P=$4 which of the statements below is true
A perfectly competitive firm will shut down in the short run when a. ATC > P...
A perfectly competitive firm will shut down in the short run when a. ATC > P > AVC. b. AVC > P > ATC. c. AVC > P. d. ATC > P.
1) A perfectly competitive firm that sells fish has a marginal cost function given by MC...
1) A perfectly competitive firm that sells fish has a marginal cost function given by MC = 3q. The market has determined a price of P = 60. How many fish will this firm produce? 2)See the previous question about the perfectly competitive fish firm. Suppose that at this level of output, the firm has average costs of production of ATC = 42. How much total economic profit will the firm earn? 3) A perfectly competitive firm will shut down...
1. For a perfectly competitive firm in the short run, the ____________ price is at minimum...
1. For a perfectly competitive firm in the short run, the ____________ price is at minimum average variable cost and the break-even price is at minimum ________ cost.    a. Shut-down: Marginal b. Shut-down: Average c. Operating: Average d. Operating: Marginal 2. The short-run supply curve for a perfectly competitive firm is a _______ line at zero quantity if the price is below minimum average variable cost but is the marginal cost if the price is at or above minimum...
2.   Draw the AVC, ATC, MR, and MC curve for a perfectly competitive firm. Assume that...
2.   Draw the AVC, ATC, MR, and MC curve for a perfectly competitive firm. Assume that the equilibrium price is $720 and the equilibrium quantity (for the firm) is 990. At the equilibrium quantity of 990 the ATC curve is equal to $680. Is this firm making a profit or a loss? Calculate the profit or loss.
When a perfectly competitive firm is earning profits in the short run, at the quantity produced,...
When a perfectly competitive firm is earning profits in the short run, at the quantity produced, price > average cost the firm's demand curve slopes downward minimum AVC > price existing firms will exit the market in the long run
Fill in the table for a perfectly competitive firm. Output VC TC AVC AFC ATC MC...
Fill in the table for a perfectly competitive firm. Output VC TC AVC AFC ATC MC P TR PROFIT 0 100 --- --- --- --- 50 1 25 50 2 20 3 53.3 4 17.5 5 90 6 30 7 265 8 41.3 9 35 10 425 A perfectly competitive firm’s demand curve is perfectly elastic.
1.Describe the way in which short-run AFC, AVC, ATC, and MC vary as the output of...
1.Describe the way in which short-run AFC, AVC, ATC, and MC vary as the output of the firm increases? 2.What are the connections between MP and MC and AP and AVC? How will MC behave as MP increase or decrease? How will AVC change as AP rises or falls? 3.What are the precise relationships between MC and minimum AVC, and between MC and minimum ATC?
1. All of the following are characteristics of perfectly competitive markets, except: A: No barriers to...
1. All of the following are characteristics of perfectly competitive markets, except: A: No barriers to entry or exit (fully mobile) B: Large number of buyers & sellers C: A homogeneous product (not differentiated) D: Individual firms have the power to control price. 2. The individual firm's demand curve (as compared to the market demand curve) in a perfectly competitive market is: A: Perfectly inelastic (vertical) B: Downward sloping, but inside of the market demand curve. C: Perfectly elastic (horizontal...
A perfectly competitive firm in the puzzle market has fixed costs that are sunk in the...
A perfectly competitive firm in the puzzle market has fixed costs that are sunk in the short run. The current situation facing that perfectly competitive firm is described by : (i) MC intersects ATC at $20 / puzzle. (ii) MC inteects AVC at $10 / puzzle. (iii) The market price of puzzles is $15 / puzzle. Which of the following statements is (are) true? I. This firm makes negative economic profit in the short run. II. This firm’s profits will...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT