Reference no: EM131503588
Some questions about microeconomics.
1. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q2. Suppose firms in this competitive market face a price of 30. In the short run, which of the following is true.
a. Firms make a positive profit.
b. Firms make a loss.
c. Firms make zero profits.
d. Firms shut down.
e. None of the above.
2. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q2. Suppose firms in this competitive market face a price of 60. In the short run, which of the following is true.
a. Firms make a positive profit.
b. Firms make a loss.
c. Firms make zero profits.
d. Firms shut down.
e. None of the above.
3. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q2. In the short run the price at which a firm shuts down is:
a. 2.
b. 4.
c. 5.
d. 10.
e. Additional information about market demand is required to answer this question.
4. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q2. Further, the market demand curve is given by: P = 100-Q.
In the long run the number of firms in the market equals:
a. 10
b. 50
c. 100
d. 200
e. None of the above.
5. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q2. In the long run the equilibrium price equals:
a. 10.
b. 30.
c. 50.
d. 100.
e. Additional information about market demand is required to answer this question.