The table below shows a competitive firm’s short-run production function. Labor is the firm’s only variable input, and market price for the firm’s product is $2 per unit. A table shows the data on units of labor and units of output. Units of Labor Units of Output 3 370 4 490 5 570 6 600 7 620 How much does the fifth unit of labor add to the firm’s total revenue?

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 – 5,000P + 25MQs = 240,000 + 5,000P – 2,000PITC = 6,000 + 14Q – 0.008Q2 + 0.000002Q3where M= $10,000 and PI = $20What is the profit-maximizing output choice for the firm?

Good Z is produced and sold in a competitive industry, and long-run industry supply is characterized by constant costs. The figure below shows a typical long-run average cost curve (LAC) for each of the firms producing good Z. LAC reaches its minimum unit cost of $12 and 1,000 units of output (point M). Suppose the demand for good Z is Qd = 52,000 – 1,000P.In long-run competitive equilibrium, each firm’s long-run marginal cost (LMC) is $_________ and each firm’s long-run average cost (LAC) is $_________.

The following graphs shows the MRP and ARP curves for a perfectly competitive firm. Suppose that the firm hires 200 workers. If the price of the firm’s output equals $5, how much output does the firm produce?

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 – 5,000P + 25MQs = 240,000 + 5,000P – 2,000PITC = 6,000 + 14Q – 0.008Q2 + 0.000002Q3where M= $9,000 and PI = $20What is the firm’s profit (loss) be?

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 – 5,000P + 25MQs = 240,000 + 5,000P – 2,000PITC = 6,000 + 14Q – 0.008Q2 + 0.000002Q3where M= $10,000 and PI = $20What will the firm’s profit (loss) be?

Total cost schedule for a competitive firm: A table shows the data on output and total cost. Output Total Cost 0 $10 1 60 2 80 3 110 4 165 5 245 If market price is $30, how many units of output will the firm produce?

When a perfect competitive industry is in long-run equilibrium,

A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 – 5,000P + 25MQs = 240,000 + 5,000P – 2,000PITC = 6,000 + 14Q – 0.008Q2 + 0.000002Q3where M= $10,000 and PI = $20What is the revised price forecast for next year?

The graph above shows cost curves for a perfectly competitive firm. If market price is $5, how much profit will the firm earn?