a. According to the diagram, the profit-maximizing output level isO 4.5 units.O 2.5 units.O 3.0 units.O 4.0 units.D. The profit-maximızing price isO $14.30.O $32.50.O $25.00.O $40.00.The firm will earn an economic profit ofO $18.75.O $0.00.O -$30.00.O $45.50.O $30.00.1. If the firm produces at a polnt that results In allocative efficlency, the price will beO $25.00.O $20.00.O $14.30.O $32.50e. If, Instead, the firm produces at a polnt that results In productive efficiency, the resulting output level will beO 2.5 units.O 4.5 units.O O units.O 4.0 units. Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answerthe following questions.$70$65$60$55$50$45$40$35$30$25 "$20$20 ši4.30$15$10$5MC$40ATC$32.50$25DemandMRQuantityPrice and costs

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Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $70 $65 $60 MC $55 $50 $45 $40 $35 $40 ATC $32.50 8 $30 E $25 $25 $20 $20 31430 $15 $10 $5 Demand MR Quantity Price and costs

Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $70 $65 $60 MC $55 $50 $45 $40 $35 $40 ATC $32.50 8 $30 E $25 $25 $20 $20 31430 $15 $10 $5 Demand MR Quantity Price and costs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a. According to the diagram, the profit-maximizing output level is
O 4.5 units.
O 2.5 units.
O 3.0 units.
O 4.0 units.
D. The profit-maximızing price is
O $14.30.
O $32.50.
O $25.00.
O $40.00.
The firm will earn an economic profit of
O $18.75.
O $0.00.
O -$30.00.
O $45.50.
O $30.00.
1. If the firm produces at a polnt that results In allocative efficlency, the price will be
O $25.00.
O $20.00.
O $14.30.
O $32.50
e. If, Instead, the firm produces at a polnt that results In productive efficiency, the resulting output level will be
O 2.5 units.
O 4.5 units.
O O units.
O 4.0 units.

Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer
the following questions.
$70
$65
$60
$55
$50
$45
$40
$35
$30
$25 "$20
$20 ši4.30
$15
$10
$5
MC
$40
ATC
$32.50
$25
Demand
MR
Quantity
Price and costs

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