A perfectly competitive firm's total cost function is TC = 200 + 4q + 2q2. where q is the firm's output level. The price of a product is $24. 1. What is the firm's producer surplus? A) $50. B) $60. C) $70. D) $80. E) None of the above. 2. What is the firm's total profit in the short run? A) -$150. The firm should shut down in the short run. B) -$150. The firm should operate in the short run. C) $50. The firm should shut down in the short run. D) $50. The firm should operate in the short run. E) None of the above.

A perfectly competitive firm's total cost function is TC = 200 + 4q + 2q2. where q is the firm's output level. The price of a product is $24. 1. What is the firm's producer surplus? A) $50. B) $60. C) $70. D) $80. E) None of the above. 2. What is the firm's total profit in the short run? A) -$150. The firm should shut down in the short run. B) -$150. The firm should operate in the short run. C) $50. The firm should shut down in the short run. D) $50. The firm should operate in the short run. E) None of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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