Q16 and Q17 $20$18MCATC$16P = MR$14$12AVC$10$82004006008001,0001,200Output (Q)The diagram above shows a Perfectly Competitive firm in the short-run. This firm will maximize its profit by choosingthe Output (Q) level:Select one:O a.600O b. 400O c. 800O d. 1,000 $20$18MCATC$16P MR$14$12AVC$10$2$02004006008001,0001,200Output (Q)The diagram above shows a Perfectly Competitive firm in the short-run. At the profit maximizing Output (Q) level, thefirm will earn a Total Profit of:Select one:O a.$1,600O b. $1,000O c.$2,000O d. $3,200

Q16AnswerThe firm produces at MC=PwhereQ=800 unitsthe correct option is option c.

$20 $18 MC ATC $16 P MR $14 $12 AVC $10 $8 $4 $2 $0 200 40 600 800 1,000 1,200 Output (Q) The diagram above shows a Perfectly Competitive firm in the short-run. At the profit maximizing Output (Q) level, the firm will earn a Total Profit of: Select one: O a. $1,600 ОЬ. $1,000 O c. $2,000 O d. $3,200

$20 $18 MC ATC $16 P MR $14 $12 AVC $10 $8 $4 $2 $0 200 40 600 800 1,000 1,200 Output (Q) The diagram above shows a Perfectly Competitive firm in the short-run. At the profit maximizing Output (Q) level, the firm will earn a Total Profit of: Select one: O a. $1,600 ОЬ. $1,000 O c. $2,000 O d. $3,200

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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