1112212017 Module Five Assessment Home I My courses ECON705 STACKED 29424 FALL2017 I Module 5 Production and Cost Estimation Competitive Markets
Module Five Assessment Home I My courses ECON STACKED FALL I Module Production and
Module Five Assessment Home I My courses ECON STACKED FALL
Home I My courses ECON STACKED FALL I Module Production and Cost Estimation Competitive Markets
Module Five Assessment Home I My courses ECON STACKED
FALL I Module Production and Cost Estimation Competitive Markets
Module Five Assessment Home I My courses
Module Five Assessment
1112212017 Module Five: Assessment Home I My courses / ECON705-STACKED-29424-FALL2017 I Module 5: Production and Cost Estimation; Competitive Markets...

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Please do help me with the questions attached below Attachment 1 Attachment 2 Attachment 3 ATTACHMENT PREVIEW Download attachment 10.jpg 1112212017 Module Five: Assessment Home I My courses / ECON705-STACKED-29424-FALL2017 I Module 5: Production and Cost Estimation; Competitive Markets I Module Five: Assessment Information Suppose the market demand and supply functions are QB : 180 — 1.513 and Q3 : 3.5P + 40 . You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product. Question 11 Not yet answered Marked out of 1.00 Determine the equilibrium price and quantity in this market. Seiect one: C3 a. P = $28; Q = 138 (3 b. P = $35; Q : 127.5 C} c.P:$25;Q:127 C d. P = $1.50. Q = 180 https:llmoodle_lsus.edulmodlquizlattempt.php?attempt=389131&page:3 1/3 ATTACHMENT PREVIEW Download attachment 11.jpg 11/222017 Module Five: Assessment Question 12 Not yet answered Marked out of 1.00 You‘ve researched and found that most ?rms in the market currently experience costs such that TC : 15 + 456,) — IOQ2 —l— 1.5623. Determine whether or not you should enter this market. Setect one: rm U a. Competitive ?rms maximize pro?ts when P exceeds M C ; if i was producing output where this occurs. then it would be pro?table to enter. 0 b. Where the current equilibrium P = ATC, that price exceeds the marginal cost so I would be pro?table upon entering. O c. Plugging the market equilibrium quantity into this total cost function results in huge costs for my ?rm, so I should not enter. 1 C, d. Using the P : MC rule, the equilibrium price is below ATC at the best quantity, so entering wouid immediately incur losses. i should not enter. Question 13 Not yet answered Marked out of 1.00 Due to unforeseen delays. you don't enter the market. However, a year later the market supply has changed to Q3 = 3.5.? + 10 Are you surprised at this shift in supply? Select one:0 a. No; the losses incurred under the old supply curve woutd cause some setters to exit. shifting supply to the left (which is what this new supply curve did). 0 b. Yes; the losses earned earlier should have reduced supply whereas this new equation shows an increase in supply. 0 c. Yes; the earlier pro?ts should have caused mergers among ?rms, reducing the number of suppliers and thus suppty itseif (curve should shift left), though the new supply curve has actually increased (shifted right). 0 d. No; the pro?ts that occurred in the previous question suggest that new ?rms would enter. This entry Woutd shift supply right, which is what the new supply curve did. https:lr'moodleisus.edulmodlquizlattemptphp?attempt=339181&page=3 213 ATTACHMENT PREVIEW Download attachment 12.jpg 11/22/2017 Module Five: Assessment Question 14 Not yet answered Marked out of 1.00 Given the new suppty conditions Q3 = 3.5P + 10, determine whether or not you should enter the market. Select one: C3 a. No; the new equilibrium price is below AVG so if i entered I would have to immediately shut down. D b. No; M C is above AVC' so lwould not recoup my ?xed costs. O 0. Yes; the new equilibrium price is now between AVG and ATC' at the optimal quantity, so ?rms (including my new one) wiil earn loss but choose to stay open. U 6. Yes; the new equilibrium price is slightly above ATC at the optima? quantity. It I entered I'd earn slightly above normal pro?t. httpsn'lmoodle.isusedulmodlquiziattempt.php?attempt=3891B1&page=3 31’3

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