I need help with a multiple choice assignment and a three page essay

Nov 29th, 2015
SKTFaker
Category:
Accounting
Price: $30 USD

Question description

I upload the prompt of the writing assignment below. and here is the multiple choice questions. please for the multiple choice I need the answers only!!

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.

1)

Assume the market for organic produce sold at farmers' markets is perfectly competitive. All else equal, as more farmers choose to produce and sell organic produce at farmers' markets, what is likely to happen to the equilibrium price of the produce and profits of the organic farmers in the long run?

1)

_______

A)

The equilibrium price is likely to increase and profits are likely to increase.

B)

The equilibrium price is likely to increase and profits are likely to remain unchanged.

C)

The equilibrium price is likely to decrease and profits are likely to decrease.

D)

The equilibrium price is likely to remain unchanged and profits are likely to increase.

2)

Which of the following is not a characteristic of a perfectly competitive market structure?

2)

_______

A)

There are no restrictions to entry by new firms.

B)

There are a very large number of firms that are small compared to the market.

C)

All firms sell identical products.

D)

There are restrictions on exit of firms. 

3)

Perfect competition is characterized by all of the following except

3)

_______

A)

sellers are price takers.

B)

a horizontal demand curve for individual sellers.

C)

heavy advertising by individual sellers.

D)

homogeneous products.

4)

Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21. Which of the following will happen?

4)

_______

A)

The firm's revenue will increase.

B)

The firm will not sell any output.

C)

The firm's profits will increase.

D)

The firm will sell more output than its competitors.

5)

Which of the following is the best example of a perfectly competitive firm?

5)

_______

A)

the United Parcel Service (UPS) 

B)

the Ford Motor Company

C)

a corn farmer in Illinois

D)

a Taco Bell restaurant

Table 12-1

Quantity

Total Cost

(dollars)

Variable Cost

(dollars)

  0

$1,000

  $0

100

  1,360

  360

200

  1,560

  560

300

  1,960

  960

400

  2,760

1,760

500

  4,000

3,000

600

  5,800

4,800

Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.

6)

Refer to Table 12-1. What is the fixed cost of production?

6)

_______

A)

$0

B)

$500

C)

$1,000

D)

It cannot be determined.

7)

Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-maximizing quantity?

7)

_______

A)

300 units

B)

400 units

C)

500 units

D)

600 units

8)

Refer to Table 12-1. If the market price of each camera case is $8, what is the firm's total revenue?

8)

_______

A)

$2,400

B)

$3,200 

C)

$4000 

D)

$4,800 

9)

Refer to Table 12-1. If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss?

9)

_______

A)

$0 (it breaks even)

B)

loss of $1,000

C)

profit of $440

D)

loss of $440

10)

Refer to Table 12-1. Suppose the fixed cost of production rises by $500 and the price per unit is still $8. What happens to the firm's profit-maximizing output level?

10)

______

A)

The firm will shut down.

B)

It will remain the same.

C)

It must fall. 

D)

It must rise to offset the increased cost. 

11)

Refer to Table 12-1. The firm will not produce in the short run if the output price falls below

11)

______

A)

$8.

B)

$4.

C)

$3.20.

D)

$2.80.

12)

If the market price is $25, the average revenue of selling five units is

12)

______

A)

$5.

B)

$12.50.

C)

$25.

D)

$125.

Figure 12-1

13)

Refer to Figure 12-1. If the firm is producing 700 units

13)

______

A)

 it is making a loss.

B)

it should cut back its output to maximize profit.

C)

it is making a profit.

D)

it should increase its output to maximize profit.

14)

Refer to Figure 12-1. If the firm is producing 700 units, what is the amount of its profit or loss?

14)

______

A)

profit equivalent to the area A

B)

loss of $280

C)

loss equivalent to the area A

D)

There is insufficient information to answer the question.

15)

Refer to Figure 12-3. If the firm is charging a price of $12 per unit

15)

______

A)

 it is making a profit.

B)

it is selling 700 units.

C)

it breaks even.

D)

it is not selling any output.

16)

A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The price of each good is $10. Calculate the firm's short-run profit or loss.

16)

______

A)

profit of $30,000

B)

profit of $6,000

C)

loss of $6,000

D)

There is insufficient information to answer the question.

17)

If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm

17)

______

A)

is maximizing marginal profit.

B)

has minimized its losses.

C)

added more to total costs than it added to total revenue.

D)

added more to total revenue than it added to total cost.

18)

Marginal revenue is 

18)

______

A)

the change in profit divided by the change in the quantity of output. 

B)

the change in total revenue divided by the change in total cost. 

C)

the change in total revenue divided by the change in the quantity of output. 

D)

total revenue divided by the total quantity of output. 

Table 12-2   

Apples (pounds)

Market Price per Pound

Total Revenue

(TR)

Average Revenue (AR)

Marginal Revenue (MR)

  0

$3

$0

-----

-----

100

150

200

250

300

350

400

Table 12-2 lists the various pounds (lbs.) of apples that Margie Stattler can sell. Assume that Margie operates in a perfectly competitive market.

19)

Refer to Table 12-2. What is Margie's total revenue if she sells 250 pounds of apples?

19)

______

A)

$250

B)

$500

C)

$750

D)

There is not enough information in the table to determine Margie's total revenue.

20)

Refer to Table 12-2. How many pounds of apples should Margie sell to maximize her profit?

20)

______

A)

300 pounds

B)

400 pounds

C)

This cannot be determined without knowing Margie's total or marginal production costs. 

D)

This can be determined only when all of the values for market price, total revenue, average revenue and marginal revenue are given.

21)

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. The lease 

21)

______

A)

is part of the marginal cost of operating the tattoo parlor. 

B)

 is an implicit cost of operating the tattoo parlor.

C)

 is a fixed cost of operating the tattoo parlor.

D)

 is a variable cost of operating the tattoo parlor.

22)

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?

22)

______

A)

Max should continue to run the tattoo parlor until his lease runs out. 

B)

If Max's marginal revenue is greater than or equal to his marginal cost, then he should stay in business. 

C)

Max's explicit cost exceeds his total revenue. He should shut down his tattoo parlor.

D)

This cannot be determined without information on his revenue. 

Figure 12-9

Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm.

23)

Refer to Figure 12-9. At price P1, the firm would produce

23)

______

A)

Q1 units 

B)

Q3 units.

C)

Q5 units.

D)

zero units. 

24)

Refer to Figure 12-9. At price P1, the firm would

24)

______

A)

lose an amount equal to its fixed cost.

B)

lose an amount more than fixed cost.

C)

break even.

D)

lose an amount less than fixed cost.

25)

Refer to Figure 12-9. At price P2, the firm would produce

25)

______

A)

Q2 units.

B)

Q3 units.

C)

Q4 units.

D)

zero units. 

26)

Refer to Figure 12-9. At price P2, the firm would

26)

______

A)

break even.

B)

lose an amount less than fixed cost.

C)

lose an amount more than fixed cost.

D)

lose an amount equal to its fixed cost.

27)

Refer to Figure 12-9. At price P3, the firm would produce

27)

______

A)

Q2 units 

B)

Q3 units.

C)

Q4 units.

D)

Q5 units. 

28)

Refer to Figure 12-9. At price P3, the firm would

28)

______

A)

lose an amount more than fixed cost.

B)

lose an amount less than fixed cost.

C)

break even.

D)

lose an amount equal to its fixed cost.

29)

Refer to Figure 12-9. At price P4, the firm would produce

29)

______

A)

Q3 units.

B)

Q4 units.

C)

Q5 units.

D)

Q6 units. 

30)

Refer to Figure 12-9. At price P4, the firm would

30)

______

A)

lose an amount equal to its fixed cost.

B)

make a normal profit.

C)

lose an amount less than fixed cost.

D)

make a profit.

31)

If total variable cost exceeds total revenue at all output levels, a perfectly competitive firm 

31)

______

A)

should produce in the short run.

B)

is making short-run profits.

C)

has covered its fixed cost. 

D)

should shut down in the short run.

32)

If a firm shuts down in the short run

32)

______

A)

its total revenue is not large enough to cover its fixed cost. 

B)

its loss equals its fixed cost.

C)

is makes zero economic profit.

D)

its loss equals zero.

33)

In the short run, a firm that is operating at a loss has two options. These options are 

33)

______

A)

to shut down temporarily or continue to produce. 

B)

to go out of business or declare bankruptcy. 

C)

to reduce output or reduce its variable costs. 

D)

to adopt new technology or change the size of its physical plant. 

34)

If a firm shuts down it

34)

______

A)

will earn enough revenue to cover its variable costs but not all of its fixed costs. 

B)

will produce nothing but must pay its fixed and variable costs. 

C)

will suffer a loss equal to its fixed costs. 

D)

will produce nothing but must pay its variable costs. 

35)

Ted's Pancake Kitchen suffers a short-run loss. When should Ted decide to shut down rather than continue to produce?

35)

______

A)

if his Kitchen's revenue is less than its explicit costs

B)

if his Kitchen's revenue is less than its variable costs

C)

if his Kitchen's revenue is less than its total costs

D)

if his Kitchen's revenue is less than its fixed costs


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