(1) Consider the following cost schedule for a firm. Quantity Marginal Cost Average Total Cost Average Variable Cost 10 $12 $32 $24 15 $14 $30 $20 20 $16 $28 $16 25 $26 $26 $20 30 $30 $28 $24 35 $40 $32 $30 What is the economic profit or loss for a perfectly competitive firm if the market price is $26? A-0. B- $20. C- negative $20. D-$150. E-negative $150
(1) Consider the following cost schedule for a firm. Quantity Marginal Cost Average Total Cost Average Variable Cost 10 $12 $32 $24 15 $14 $30 $20 20 $16 $28 $16 25 $26 $26 $20 30 $30 $28 $24 35 $40 $32 $30 What is the economic profit or loss for a perfectly competitive firm if the market price is $26? A-0. B- $20. C- negative $20. D-$150. E-negative $150
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
(1) Consider the following cost schedule for a firm.
| Quantity | Marginal Cost | |
|
| 10 | $12 | $32 | $24 |
| 15 | $14 | $30 | $20 |
| 20 | $16 | $28 | $16 |
| 25 | $26 | $26 | $20 |
| 30 | $30 | $28 | $24 |
| 35 | $40 | $32 | $30 |
What is the economic profit or loss for a
A-0. B- $20. C- negative $20. D-$150. E-negative $150
(2) At what price level would a firm's short-run supply curve begin?
A-The price at the minimum of the average variable cost curve
B-The price at the profit-maximizing point of production
C-The price at the intersection of the average total cost curve and the marginal cost curve
D-The price at which demand changes from its elastic to inelastic range
E-The price at which marginal cost equals marginal revenue
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