Week 12 Quiz - 1 Nancy sells beeswax in a perfectly competitive market for $50 per pound Her fixed costs are $15 and she is capable of producing up to 6

Week 12 Quiz - 1 Nancy sells beeswax in a perfectly...

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1.Nancy sells beeswax in a perfectly competitive market for $50 per pound. Her fixed costs are $15, and she is capable of producing up to 6 pounds of beeswax each year. Use that information to fill in the table below and then answer the following question: What quantity of beeswax should Nancy produce in order to maximize her profit? A.3 pounds of beeswax B.4 pounds of beeswax C.5 pounds of beeswax D.6 pounds of beeswax 2.The graph below depicts the long-run equilibrium condition in the market for aloe vera gel. The left-hand panel depicts market demand and industry supply; the right-hand panel depicts the cost curves for a representative firm in the industry. Which of the following statements is true?
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3.The egg industry is comprised of thousands of firms producing an identical product. Demand and supply conditions are indicated in the left-hand panel of the figure below; the long-run cost curves of a representative egg producer are shown in the right-hand panel. Currently, the market price of eggs is $2 per dozen, and at that price consumers are purchasing 800,000 dozen eggs per day. Determine how many eggs each firm in the industry will produce if it wants to maximize profit.
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