Chapter 14 10. Refer to Table 14-1. If the firm is producing 3 units of output, it should produce a. more units of output because its marginal revenue is greater than its marginal cost. b. fewer units of output because its marginal revenue is less than its marginal cost. c. more units of output because its marginal revenue is less than its marginal cost. d. fewer units of output because its marginal revenue is greater than its marginal cost.

Chapter 14 10. Refer to Table 14-1. If the firm is producing 3 units of output, it should produce a. more units of output because its marginal revenue is greater than its marginal cost. b. fewer units of output because its marginal revenue is less than its marginal cost. c. more units of output because its marginal revenue is less than its marginal cost. d. fewer units of output because its marginal revenue is greater than its marginal cost.

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

In the parish of St. Elizabeth, you were asked to be the Managing Director of a company that manufactures car battery. Using a function of your choice for the product's demand and the total cost (which includes fixed and variable costs) 2. i. Determine the revenue function by showing your full working. ii. Determine the profit function. ii. Using the figures that you arrived at in parts i. and ii., demonstrate how the maximum profit ca be found.e B II I!!
A. Define marginal revenue and marginal cost. B. The following information is a summary of a firm's costs (in dollars) associated with the production of output Q. Q FC VC TC MC AFC AVC ATC 10 10 28 20 10 32 30 10 44 40 10 56 50 10 80 60 10 128 i. Calculate MC, AFC, AVC and ATC associated with each level of output. ii. From calculations at i., sketch AFC and AVC on the same axes. !!!
The wireless data industry, in which firms compete vigorously against one another for customers, is not considered a perfectly competitive industry. You can choose multiple answers Which of the following industry characteristics make the wireless data industry a non-perfectly competitive industry? A.For wireless firms, long-run economic profits are possible. B.Substantial barriers to entry prevent new firms from entering the wireless market. C.The market is dominated by a few very large wireless firms. D.Wireless firms provide a homogeneous product.
32. A decrease in the price of a fixed factor of production decreases total cost and A. decreases marginal cost. B. leaves marginal cost unchanged. C. increases marginal cost. D. increases variable cost. 36. The marginal cost curve intersects the average fixed, average variable, and average total cost curves all at their minimum points. True False 38. Easy entry and exit ensure that perfectly competitive firms cannot make a long-run economic profit. True False 39. A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price. True False
24.Use the graph to answer the question Where on the graph would firms be experiencing diseconomies of scale? A-Between A and B. B-Point B. C-Between B and C. D-Between C and D E-Beyond D 25.A firm has a total revenue of $90,000. Its total explicit costs are $50,000, and its total implicit costs are $40,000. What economic profit is the firm earning? A-$50,000. B-$40,000. C-$10,000. D-Indeterminate. E-Normal
12 Suppose Finnegan's Irish Pub earned $10,000 in positive Economic Profit last year. Its Total Revenue was $100,000, and its Explicit costs were $80,000. How much were its Implicit Costs? i of Select one: a. $80,000 b. $30,000 c. $10,000 d. $20,000 Not yet answered
2. Tom quit his $65,000 a year corporate lawyer job to open up his own law practice. In Tom's first year in business his total revenue equaled $150,000. Tom's explicit cost during the year totaled S85,000. What is Tom's economic profit for his first year in business? A SO b. $20,000 e. S65,000 d. $85.000
8. A firm is earning an accounting profit of $5,000. Its implicit costs are $3,000, explicit costs are $8,000, and its economic profit is $2,000. What must its total revenue be? A-$7,000 B-$10,000 C-$13,000 D-$18,000 E-Indeterminate 9. If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true? A- Average total cost < price; marginal cost = marginal revenue B-Average total cost > price; marginal cost = marginal revenue C-Average total cost < average revenue; marginal cost > marginal revenue D-Total cost > total revenue; marginal cost > marginal revenue E- Total cost = total revenue; marginal cost > marginal revenue
A5.
4.Average variable cost is found by dividing.............. a. variable cost by output b. output by variable cost c. marginal cost by output d. output by marginal cost 5. A profit maximizing firm will increase production a. price is less than marginal cost b. price equals marginal cost c. price exceeds marginal revenue d. price exceeds marginal cost 6. Which statement is true? a. Accounting profits are greater than economic profits. b. Economic profits are greater than accounting profits. c. Accounting profits are equal to economic profits...
10
Output Total Revenue ($) Total Variable Cost ($) Total Fixed Costs 1 1,000 750 500 2 2,000 1,250 500 3 3,000 2,000 500 4 4,000 3,000 500 5 5,000 4,500 500 What is the slope of the total revenue curve? At about how many computers per day do economic profits seem to be at a maximum? Graph the economic model of this firm.