Reference no: EM131503588

Some questions about microeconomics.

1. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q². Suppose firms in this competitive market face a price of 30. In the short run, which of the following is true.

a. Firms make a positive profit.

b. Firms make a loss.

c. Firms make zero profits.

d. Firms shut down.

e. None of the above.

2. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q². Suppose firms in this competitive market face a price of 60. In the short run, which of the following is true.

a. Firms make a positive profit.

b. Firms make a loss.

c. Firms make zero profits.

d. Firms shut down.

e. None of the above.

3. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q². In the short run the price at which a firm shuts down is:

a. 2.

b. 4.

c. 5.

d. 10.

e. Additional information about market demand is required to answer this question.

4. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q². Further, the market demand curve is given by: P = 100-Q. 

In the long run the number of firms in the market equals:

a. 10

b. 50

c. 100

d. 200

e. None of the above.

5. Assume that all firms in a competitive industry have cost curves given by the following: TC = 100 +10q +4q². In the long run the equilibrium price equals:

a. 10.

b. 30.

c. 50.

d. 100.

e. Additional information about market demand is required to answer this question.