Ace - AI Tutor
Ask Our Educators
Textbooks
My Library
Flashcards
Scribe - AI Notes
Notes & Exams
Download App
Fatima Yesmin

Fatima Y.

Divider

Questions asked

ANSWERED

Jen H verified

Numerade educator

The variance of a binomial distribution for which n = 80 and p = 0.20 is: a. 375. b. 75. C. 16. d. 12.8

View Answer
 divider
ANSWERED

Crystal Wang verified

Numerade educator

If a perfectly competitive firm has a total cost function given by C left parenthesis Q right parenthesis equals 25 plus 20 Q squared, and the market price for the firm's output (P) is $4 per unit, its marginal cost is negative; therefore, the firm must shut-down. True False

View Answer
 divider
ANSWERED

Mauya Mitchell verified

Numerade educator

The dead weight loss (DWL) caused by perfect competition is greater than the dead weight loss (DWL) caused by monopoly due to several reasons: 1) Perfect competition is characterized by a large number of suppliers (or firms). 2) A monopolist can produce output more efficiently than a perfectly competitive firm. 3) Monopolists are always profitable; therefore, they don't create any DWL (i.e., DWL =0). True False

View Answer
 divider
ANSWERED

Mauya Mitchell verified

Numerade educator

Under perfect competition, if P > AVC, the firm should shut down to minimize losses, unless it can find long-term investors who are willing to offer leverage financing. True False

View Answer
 divider
ANSWERED

Andrew Davis verified

Numerade educator

Trendy Fashions, Inc. has a short-run total cost function of C left parenthesis q right parenthesis equals 200 plus 2 q plus 4 q squared and its short-run marginal cost function is given as M C left parenthesis q right parenthesis equals 2 plus 8 q, where q represents output. Based on this information, what is the firm's minimum level of average variable cost? a. 8 b. 2 c. 0 d. 6

View Answer
 divider
ANSWERED

Andrew Davis verified

Numerade educator

Scale economies exist whenever increment A C left parenthesis q right parenthesis greater than 0 comma a s increment q greater than 0. True False

View Answer
 divider
ANSWERED

Andrew Davis verified

Numerade educator

The market for Good X consists of 1,000 identical firms. Each firm has a short-run total cost function given of C left parenthesis q right parenthesis equals 100 plus 100 q plus 100 q squared and a short-run marginal cost curve of M C left parenthesis q right parenthesis equals 100 plus 200 q, where q represents the level of output. Based on this information, the equation for the firm's average variable cost curve is? a. A V C left parenthesis q right parenthesis equals 100 plus 200 q b. A V C left parenthesis q right parenthesis equals 100 plus 100 q c. A V C left parenthesis q right parenthesis equals 100 over q d. A V C left parenthesis q right parenthesis equals 100 over q plus 100 plus 100 q

View Answer
 divider
ANSWERED

Andrew Davis verified

Numerade educator

The dead weight loss (DWL) of monopoly can be calculated by adding the consumer surplus and producer surplus resulting from the monopolist charging a price that is higher than marginal cost. True False

View Answer
 divider
ANSWERED

Andrew Davis verified

Numerade educator

New Horizons Ventures has a total cost function given by C left parenthesis q right parenthesis equals 250 plus 200 Q to the power of 4, and the market price for the firm's output (P) is $40 per unit. Assuming that it operates under perfect competition, the firm's profit-maximizing level of output (q) is 20. True False

View Answer
 divider
ANSWERED

Crystal Wang verified

Numerade educator

Refer to the following table: At what level of output (q) will the firm maximize profits? a. 30 b. 10 c. 40 d. 20

View Answer
 divider