Marianne owns a dairy farm near Fresno, CA. She is currently producing cheese at an output levelwhere marginal revenue (MR) exceeds marginal cost (MC). In order to maximize her profit,Marianne shouldshut down her dairy farm.decrease her output.not change her output.increase her output. Suppose that there is a perfectly competitive firm with the following cost data:Variable Cost (VC)=10Q²Fixed Cost (FC)=100Market Price $20Find the firm's profits (Hint: You will need the Total Revenue and Total Cost) at the profitmaximizing Q.O-90100140120

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Marianne owns a dairy farm near Fresno, CA. She is currently producing cheese at an output level where marginal revenue (MR) exceeds marginal cost (MC). In order to maximize her profit, Marianne should oooo shut down her dairy farm. O decrease her output. O not change her output. O increase her output.

Marianne owns a dairy farm near Fresno, CA. She is currently producing cheese at an output level where marginal revenue (MR) exceeds marginal cost (MC). In order to maximize her profit, Marianne should oooo shut down her dairy farm. O decrease her output. O not change her output. O increase her output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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$ $11.00 $9.00 $6.00 0 This firm is experiencing an: O economic profit of $200 O economic loss of $1,100 Oeconomic loss of $200 economic profit of $1,100 k 85 100 MC ATC AVC MR Quantity
Which of the following is an expression of profit for a perfectly competitive firm? Profit for a perfectly competitive firm can be expressed as ⒸA. Profit=(PxQ)-(TCxQ), where P is price, Q is output, and TC is total cost. OB. Profit=P-MC, where P is price and MC is marginal cost. OC. Profit=PxQ, where is price and Q is output. O D. Profit=P-ATC, where P is price and ATC is average total cost. O E. Profit= (P-ATC) XQ, where P is price, Q is output, and ATC is average total cost.
$11.00 MC| $10.00 $9.00 ATC $8.00 $7.00 TRAVCI $6.00 $5.00 $4.00 $3.00 2 3 7 9 10 Quantity of Output (q) Pierre is a photographer in a perfectly competitive market. The graph shown above gives his MC, ATC and AVC curves. Suppose the market price is $10.50. How much profit does Pierre make? 22.5 24 20 O18 S per unit
Is my answer correct? i think you need information about the AVC to answer this question. I know the firm is productive at a loss, but in order to decide whether or not the firm should shut down, you have to know whether or not price is above or below AVC, right?
Only typed answer
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