Advanced Microeconomics, Production Theory: Perfect Competition A competitive firm has the following costfunctions: SRMC(Q)=3Q²–16Q+30 and AVC(Q)=Q?-8Q+30. All of the fixed cost issunk. At the market price P=14, how much output might the firm produce?I. Q=0II. Q=4/3III. Q=4I onlyII onlyIII onlyI and II onlyI and III onlyII and III only A firm has short-run total costs given by SRTC(Q)=Q³-4Q²+6Q ahd all of the fixed cost is non-sunk.Which of the following is true?The firm cannot make negative profits if it chooses to produce a positive amount ofoutput in the short run.The firm will make positive profits if it chooses to produce a positive amount of outputin the short run.At P=1, the firm is making negative profits but will still choose to produce in the shortrun.At P=1, the firm is making negative profits and will not produce in the short run.

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A competitive firm has the following cost functions: SRMC(Q)=3Q²–16Q+30 and AVC(Q)=Q²-8Q+30. All of the fixed cost is sunk. At the market price P=14, how much output might the firm produce? I. Q=0 П. Q-4/3 III. Q=4 I only II only III only I and II only I and III only II and III only

A competitive firm has the following cost functions: SRMC(Q)=3Q²–16Q+30 and AVC(Q)=Q²-8Q+30. All of the fixed cost is sunk. At the market price P=14, how much output might the firm produce? I. Q=0 П. Q-4/3 III. Q=4 I only II only III only I and II only I and III only II and III only

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Advanced Microeconomics, Production Theory: Perfect Competition

A competitive firm has the following cost
functions: SRMC(Q)=3Q²–16Q+30 and AVC(Q)=Q?-8Q+30. All of the fixed cost is
sunk. At the market price P=14, how much output might the firm produce?
I. Q=0
II. Q=4/3
III. Q=4
I only
II only
III only
I and II only
I and III only
II and III only

A firm has short-run total costs given by SRTC(Q)=Q³-4Q²+6Q ahd all of the fixed cost is non-sunk.
Which of the following is true?
The firm cannot make negative profits if it chooses to produce a positive amount of
output in the short run.
The firm will make positive profits if it chooses to produce a positive amount of output
in the short run.
At P=1, the firm is making negative profits but will still choose to produce in the short
run.
At P=1, the firm is making negative profits and will not produce in the short run.

Study of decisions made by households and business firms at an individual level. It includes several laws and theorems related to demand, supply, production, allocation of resources, and prices.

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