MC and MR Table 2.1: information Quantity MR MC $8.00 $6.00 $8.00 $7.00 3. $8.00 $8.00 4 $8.00 $9.00 $8.00 $10.00 Refer to Table 2.1. At an output level of 4 units, this competitive firm should production -in order to maximize profits. O decrease O No answer text provided. O No answer text provided. increase

MC and MR Table 2.1: information Quantity MR MC $8.00 $6.00 $8.00 $7.00 3. $8.00 $8.00 4 $8.00 $9.00 $8.00 $10.00 Refer to Table 2.1. At an output level of 4 units, this competitive firm should production -in order to maximize profits. O decrease O No answer text provided. O No answer text provided. increase

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A5.
Which of the following statements is correct? OA. Accounting profit is typically larger than economic profit. O B. Accounting profit equals the firm's revenues minus all of its costs, implicit and explicit. OC. Economic profit equals the firm's revenues minus its explicit costs O D. All of the above
Economic profits may result from: O a. innovation b.risk taking Oc. exploiting market inefficiencies Od. all the above O e. a and b
5,000 Total Cost 10,000 O a.) The profit is maximized. Profit Total Revenue b.) The firm should increase output 15,000 Based on this graph, which of the following statements is true at an output of 7,000 indicated by the green line? Output Oc.) The slopes of the total revenue and total cost curves are equal. O d.) The cost is rising faster than the revenue.
Use Figure 11-5 to answer the following question(s). Cost and Revenue In long run equilibrium, this competitive firm will face a price of $6,200 units $10, 250 units $20, 300 units. $16, 300 units. $20 11 71 10 b 6 a Figure 11-5 טן MC MR ATC AVC 200 250 300 Quantity and produce 13
TABLE S-1 Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue TFC TVC TC Profit 0. $30 $0 V $0 $40 -$40 1 $30 $30 $40 $12 W -$22 $60 $40 Y $68 -$8 $30 $90 $40 $45 $85 Refer to Table 8-1. What is the AVC of producing three units of output? $15 $32.66 $45 $50 2. 3.
6 FIGURE 8-3 1) A. O 2) B. 3) C. D 4) D. Q C Refer to Figure 8-3. A firm that is producing an output of 1000 units will minimize its costs at point Q-2000 Q-1000 locust line 5) halfway between B and D.
Question 8 Use the cost chart: Assuming this firm competes in a perfectly competitive market. What is the profit (or loss, loss is a negative) when the price is $1.60. Cost Chart Q 0 5 10 15 20 25 30 35 40 Typed answer will be automatically saved. X₂ X² Ω· FC 10 10 10 10 10 10 10 10 10 Write your response here... VC Twos 0 3 7 12 18 25 33 42 52 TC 10 13 17 225755 28 35 43 62 AFC 0.67 0.29 AVC 0.60 0.70 0.90 1.00 1.10 ATC 2.60 1.47 1.43 1.49 MC 1.00 1.80 □
5. Answer the question on the basis of the following data confronting a firm: Marginal Marginal Cost Output Revenue $16 $10 2 16 3 16 13 4 16 17 16 21 Refer to the data. If the firm's minimum average variable cost is $10, the firm's profit-maximizing level of output would be: A. 2. B. 3. C. 4. D. 5. 6. In the short run, a purely competitive firm will always make an economic profit if: A.P= ATC. B. P> AVC. C.P= MC. D. P> ATC. Please explain. 7. A firm finds that at its MR = MC output, its TC = $1,000, TVC = $800, TFC = $200, and total revenue is $900. This firm should: A shut down in the short run. B. produce because the resulting loss is less than its TFC. C. produce because it will realize an economic profit. D. liquidate its assets and go out of business. %3D