(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

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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(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

(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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