1. When the TR and TC curves have the same slope,a. they are the furthest from each other.b. they are closest to each other.c. they intersect each other.d. profit is zero.

When the slopes of the total revenue (TR) and total cost (TC) curves coincide, it represents profit…

Answered: 1. When the TR and TC curves have the…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 3E

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Similar questions

Do entry and exit occur in the short run, the long run, both, or neither?
What two lines on a cost curve diagram intersect at the zero-profit point?
What two lines on a cost curve diagram intersect at the shutdown point?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
Many films in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?
The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total variable costs are 20 for one aquarium, 25 for two units, 35 for the three units, 50 for four units, and 80 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the Profit-maximizing quantity of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.

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1. When the TR and TC curves have the same slope, a. they are the furthest from each other. b. they are closest to each other. c. they intersect each other. d. profit is zero.