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MC $80 ATC $64 $62 $60 AVC $42 $37 80 100 140 200 a The graph above shows the cost curves for Ollie's Oranges, a small citrus producer in Florida. Use this information to answer questions #18-21. 18. If the market price of oranges is $42 per crate, what is the short-run profit maximizing level of output for this firm? a. q =0 b. q = 80 c. q = 100 d. q = 140 e. q= 200 19. How much profit will Ollie's Oranges earn in the short-run if it is producing at the profit maximizing level of output that you identified in the previous problem? a. -$2,000 b. -$1800 c. $0 d. $500 e. $4,200

MC $80 ATC $64 $62 $60 AVC $42 $37 80 100 140 200 a The graph above shows the cost curves for Ollie's Oranges, a small citrus producer in Florida. Use this information to answer questions #18-21. 18. If the market price of oranges is $42 per crate, what is the short-run profit maximizing level of output for this firm? a. q =0 b. q = 80 c. q = 100 d. q = 140 e. q= 200 19. How much profit will Ollie's Oranges earn in the short-run if it is producing at the profit maximizing level of output that you identified in the previous problem? a. -$2,000 b. -$1800 c. $0 d. $500 e. $4,200

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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i need 18 and 19 please!! 

MC $80 ATC $64 $62 $60 AVC $42 $37 80 100 140 200 The graph above shows the cost curves for Ollie's Oranges, a small citrus producer in Florida. Use this information to answer questions #18-21. 18. If the market price of oranges is $42 per crate, what is the short-run profit maximizing level of output for this firm? a. q =0 b. q = 80 c. q = 100 d. q = 140 e. q= 200 19. How much profit will Ollie's Oranges earn in the short-run if it is producing at the profit maximizing level of output that you identified in the previous problem? a. -$2,000 b. -$1800 c. $0 d. $500 e. $4,200 20. What is the lowest price at which Ollie's Oranges will continue to operate in the short-run? a. $0 b. $37 c. $42 d. $60 e. $64 21. Suppose that the government would like to provide a subsidy to support small growers like Ollie's Oranges. This subsidy will be most effective if a. Supply is very elastic b. Demand is very inelastic c. Supply is very inelastic d. Oranges are a normal good e. The subsidy is given to the growers rather than the consumers.
Transcribed Image Text:MC $80 ATC $64 $62 $60 AVC $42 $37 80 100 140 200 The graph above shows the cost curves for Ollie's Oranges, a small citrus producer in Florida. Use this information to answer questions #18-21. 18. If the market price of oranges is $42 per crate, what is the short-run profit maximizing level of output for this firm? a. q =0 b. q = 80 c. q = 100 d. q = 140 e. q= 200 19. How much profit will Ollie's Oranges earn in the short-run if it is producing at the profit maximizing level of output that you identified in the previous problem? a. -$2,000 b. -$1800 c. $0 d. $500 e. $4,200 20. What is the lowest price at which Ollie's Oranges will continue to operate in the short-run? a. $0 b. $37 c. $42 d. $60 e. $64 21. Suppose that the government would like to provide a subsidy to support small growers like Ollie's Oranges. This subsidy will be most effective if a. Supply is very elastic b. Demand is very inelastic c. Supply is very inelastic d. Oranges are a normal good e. The subsidy is given to the growers rather than the consumers.
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