$70 $65 MC $60 $55 $50 $45 $40 ATC $40 $32.50 $35 $30 $25 $25 $20 "$14.30 $15 Demand $10 $5 MR Quantity a. According to the diagram, the profit-maximizing output level is O 2.5 units. O 4.5 units. O 4.0 units. O 3.0 units. b. The profit-maximizing price is O $25.00. O $40.00. O $14.30. O $32.50. c. The firm will earn an economic profit of O -$30.00. O $45.50. O $0.00. O $30.00. O $18.75. d. If the firm produces at a point that results in allocative efficiency, the price will be O $25.00. O $20.00. O $14.30. O $32.50. e. If, instead, the firm produces at a point that results in productive efficiency, the resulting output level will be O O units. O 4.5 units. O 4.0 units. O 2.5 units. Price and costs

$70 $65 MC $60 $55 $50 $45 $40 ATC $40 $32.50 $35 $30 $25 $25 $20 "$14.30 $15 Demand $10 $5 MR Quantity a. According to the diagram, the profit-maximizing output level is O 2.5 units. O 4.5 units. O 4.0 units. O 3.0 units. b. The profit-maximizing price is O $25.00. O $40.00. O $14.30. O $32.50. c. The firm will earn an economic profit of O -$30.00. O $45.50. O $0.00. O $30.00. O $18.75. d. If the firm produces at a point that results in allocative efficiency, the price will be O $25.00. O $20.00. O $14.30. O $32.50. e. If, instead, the firm produces at a point that results in productive efficiency, the resulting output level will be O O units. O 4.5 units. O 4.0 units. O 2.5 units. 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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