D there is insufficient information to answer the

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d. There is insufficient information to answer the question.
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4/16/2018 Module 5: Homework Assignment 6/16 Question 6 Correct Marked out of 1.00 Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 12-5. If the market price is $20, what is the firm's profit-maximizing output? Select one: a. 1,800 units b. 750 units c. 1,100 units d. 1,350 units
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4/16/2018 Module 5: Homework Assignment 7/16 Question 7 Correct Marked out of 1.00 Question 8 Correct Marked out of 1.00 Question 9 Correct Marked out of 1.00 Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from its previous owner, Sylvia Sidney. The lease has five years remaining and requires a monthly payment of $4,000. Max's explicit cost amounts to $3,000 per month more than his revenue. Should Max continue operating his business? Select one: a. This cannot be determined without information on his revenue. b. Max's explicit cost exceeds his total revenue. He should shut down his tattoo parlor. c. If Max's marginal revenue is greater than or equal to his marginal cost, then he should stay in business. d. Max should continue to run the tattoo parlor until his lease runs out. A perfectly competitive firm's short-run supply curve is Select one: a. upward sloping and is the portion of the marginal cost curve that lies above the average total cost curve. b. upward sloping and is the portion of the marginal cost curve that lies above the average variable cost curve. c. perfectly elastic at the market price. d. horizontal at the minimum average total cost. If a typical firm in a perfectly competitive industry is earning profits, then Select one: a. all firms will continue to earn profits. b. new firms will enter in the long run causing market supply to increase, market price to fall and profits to decrease. c. new firms will enter in the long run causing market supply to decrease, market price to rise and profits to increase. d. the number of firms in the industry will remain constant in the long run.
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4/16/2018 Module 5: Homework Assignment 8/16 Question 10 Correct Marked out of 1.00 Question 11 Correct Marked out of 1.00 A perfectly competitive wheat farmer in a constant-cost industry produces 3,000 bushels of wheat at a total cost of $36,000. The prevailing market price is $15. What will happen to the market price of wheat in the long run? Select one: a. The price falls to $12. b. The price rises above $15. c. There is insufficient information to answer the question. d. The price remains constant at $15. The reason that the coffeehouse market is monopolistically competitive rather than perfectly competitive is because Select one: a. barriers to entry are very low.
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