Consider the data in the Table below. Firm F operates in a perfectly competitive market. FIRM PRICE OUTPUT TOTAL REVENUE TOTAL COSTS TOTAL FIXED COSTS TOTAL VARIABLE COSTS AVERAGE TOTAL COSTS AVERAGE VARIABLE COSTS MARGINAL COST a) Shut down. Complete the data in the Table. What should Firm F do at this time? F $5.00 ? $4,000 ? $1200 ? $5.50 Minimum point ? c) Decrease output to reduce costs. b) Increase output to increase marginal cost until it equals the market price. d) Nothing. Firm F is maximizing its profit.

Consider the data in the Table below. Firm F operates in a perfectly competitive market. FIRM PRICE OUTPUT TOTAL REVENUE TOTAL COSTS TOTAL FIXED COSTS TOTAL VARIABLE COSTS AVERAGE TOTAL COSTS AVERAGE VARIABLE COSTS MARGINAL COST a) Shut down. Complete the data in the Table. What should Firm F do at this time? F $5.00 ? $4,000 ? $1200 ? $5.50 Minimum point ? c) Decrease output to reduce costs. b) Increase output to increase marginal cost until it equals the market price. d) Nothing. Firm F is maximizing its profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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