A perfectly competitive firm, earning economic profits, produces and sells 100 units of output at a price of $20 per unit. If its marginal cost of increasing output to a rate of 101 units is $18, which of the following statements is correct? A B C D The total revenue from selling 101 units is the same as the total revenue from selling 100 units The total profit from selling 101 units is $2 greater than the total profit from selling 100 units. The total cost of producing 101 units is $2 greater than the total cost of producing 100 units. To sell 101 units, the firm must reduce its price below $20. To sell 101 units, the firm must raise its price above $20. X

A perfectly competitive firm, earning economic profits, produces and sells 100 units of output at a price of $20 per unit. If its marginal cost of increasing output to a rate of 101 units is $18, which of the following statements is correct? A B C D The total revenue from selling 101 units is the same as the total revenue from selling 100 units The total profit from selling 101 units is $2 greater than the total profit from selling 100 units. The total cost of producing 101 units is $2 greater than the total cost of producing 100 units. To sell 101 units, the firm must reduce its price below $20. To sell 101 units, the firm must raise its price above $20. X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please do fast asap.
1. There are 300 identical firms in a perfectly competitive market, the price of the output is p, the short-run cost function of a typical firm in the market is as follows: C(q) = q³-2q²+2q+10 a. What is this firm's (short-run) marginal cost function? b. What is this firm's (short-run) average variable cost function? c. What is this firm's (short-run) supply function? d. If p = 17, what is this firm's maximum profit?
in a perfectly competitive industry, in the long run, firms earn a positive economic profit firms earn zero economic profit firms earn a negative economic profit firms might earn a positive, zero or negative profit "
2
i)
,
Refer to the diagram to the right which shows the cost and demand curves for a profit-maximizing firm in a perfectly competitive market. What is the amount of its total fixed cost? OA. $1,000 B. $1,440 OC. $2,520 OD. It cannot be determined. Price and cost (5) 40.50 36.00 30.00 28.00 130 180 Quantity MC 240 ATC AVC MR
. A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm's total cost is: TC = a + bQ?. Use only the cost curve given. a. Determine mathematically the level of output the firm will produce in the long run.
Typed plzxx
ps ndar 2 You're running a small firm, and you have an estimate of both your cost function and your demand curve. Your cost function is TC-791-11q+5g 2. while your inverse demand curve is P-870-0.4q, where P is the price of one unit of your output and q is the quantity of units produced and sold If you wanted to maximize profit. what quantity would you produce? Please round your answer to the nearest whole number (ie, no decimal places) Type your answer...
QUESTION 1 A perfectly competitive firm has the following total cost function: Total output Total Cost 0 20 1 30 2 42 3 55 4 69 5 84 6 100 7 117 How much will the firm produce if the price of the production the market is Rs. 14 per unit? How will it change its output if price rises to Rs. 16 per unit?
If the restaurant now sells 75 bowls of Super Chasu Ramen at $20.00 per bowl, are they still able to make profit or have a loss? Why or why not? Explain.