The following table applies to a purely competitive industry composed of 100 identical firms.   Refer to the above table. If each of the 100 firms in the industry is maximizing its profit and earning only a normal profit, each must have an average total cost of:Multiple ChoiceR2.R3.R4.R5.

The following table shows cost data for a perfectly competitive firm. Output Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost1 $400 $100 $500 $1002 200 90 290 803 133 80 213 604 100 70 170 405 80 80 160 1206 67 90 157 1407 57 102 159 1748 50 116 166 2149 44 130 174 24210 40 150 190 330  If the market price for the firm's product is $174, the firm will produceMultiple Choice7 units and earn economic profits of $104.9 units and earn economic profits of $104.7 units and earn economic profits of $64.9 units and earn economic profits of -$4.

If a perfectly competitive firm is facing a situation where the price of its product is lower than the average total cost, which of the following statements is true?Multiple ChoiceOther firms will want to enter the industry because of the economic profits generated by the firm.The firm may be earning some accounting profits, but less than what it could earn elsewhere.The firm is generating a loss, and if things are not expected to improve the firm will leave the industry.The firm may earn economic profits in the long run if it expands its plant in order to exploit economies of scale.

Multiple Choice QuestionMonopolistically competitive firms are not productively efficient because output is less than society's optimal level because a producer's Blank______.Multiple choice question.average variable cost per unit is not at its optimal possible costaverage fixed cost per unit is not at its lowest possible costmarginal revenue per unit is not at its optimal possible priceaverage total cost per unit is not at its lowest possible cost

Figure 7.5  Figure 7.5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry.Refer to Figure 7.5. The firm’s manager suggests that the firm’s goal should be to maximise average profit.  If the firm does this, the amount of profit that it will earn is  —.Group of answer choices$6600$6750$12 150$36 000

Q10 An industry currently has 100 firms, each of which has fixed cost of $16 and average variable cost as follows: Quantity: 1, 2, 3, 4, 5, 6 Average variable cost: $1, 2, 3, 4, 5, 6 a) Compute a firm's marginal cost and average total cost for each quantity from 1 to 6. b) The equilibrium price is currently $10.How much does each firm produce? What is the total quantity supplied in the market? c) In the long run, firms can enter and exit the market, and all entrants have the same costs as above. As this market makes the transition to its long-run equilibrium,will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? Explain your answers. d) Graph the long-run supply curve for this market, with specific numbers on the axes as relevant.