The figure above shows the supply curve for pizzas
a. What is the marginal cost of the 20th pizza?
b. What is the minimum supply price of the 20th pizza?
c. If the price is $6 per pizza, what is the producer surplus on the 20th pizza?
d. If the price is $6 per pizza, what is the producer surplus for the total quantity of pizzas produced?
e. If the price is $8 per pizza, what is the producer surplus for the total quantity of pizzas produced?
f. If the price is $10 per pizza, what is the producer surplus for the total quantity of pizzas produced?
a. The marginal cost of the 20th pizza is $6.
b. The minimum supply price of the 20th pizza is $6.
c. If the price is $6 per pizza, the producer surplus on the 20th pizza is zero.
d. If the price is $6 per pizza, the producer surplus is $20.
e. If the price is $8 per pizza, the producer surplus is $80.
f. If the price is $10 per pizza, the producer surplus is $180.
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Firms in perfect competition will leave the industry if they
a. suffer short-run losses b. suffer losses, even if they are covering variable costs in the short run c. suffer long-run losses d. earn a normal profit e. earn a zero economic profit
Jamie and Danny both attend the same college and incur the same expenses for tuition, books, and school supplies. Jamie gave up a lucrative modeling job in Paris to attend school full-time and Danny gave up a part-time job as a sales clerk in a department store. It follows that: a. the opportunity cost of attending college is the same for both since they are enrolled at the same academic
institution. b. the opportunity cost of attending college is likely greater for Jamie than for Danny. c. the opportunity cost of attending college is likely greater for Danny than for Jamie. d. the opportunity cost is minimal for both since college graduates are paid much higher than high school graduates on average.
The simple case of pricing with market power assumes that (a) all consumers are charged the same price, (b) the firm sells one product, (c) demand exists in one time period, and (d) competitors do not pursue pricing games. Economists insist on reviewing what happens as each assumption is relaxed one at a time. But it is clear that in the real world all four are relaxed simultaneously. Why does economic analysis insist on such an unrealistic analysis?
What will be an ideal response?
The Lucas supply function implies that only anticipated policy changes have an effect on real output.
Answer the following statement true (T) or false (F)