Quantity MR MC 1 $8.00 $6.00 $8.00 $7.00 $8.00 $8.00 4. $8.00 $9.00 $8.00 $10.00 Refer to Table 2.1. At an output level of 3 units, this competitive firm should production -in order to maximize profits. O not change O No answer text provided. O No answer text provided. O change

Quantity MR MC 1 $8.00 $6.00 $8.00 $7.00 $8.00 $8.00 4. $8.00 $9.00 $8.00 $10.00 Refer to Table 2.1. At an output level of 3 units, this competitive firm should production -in order to maximize profits. O not change O No answer text provided. O No answer text provided. O change

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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Question

MC and MR
Table 2.1:
information
Quantity
MR
MC
1
$8.00
$6.00
2.
$8.00
$7.00
$8.00
$8.00
4
$8.00 $9.00
$8.00
$10.00
Refer to Table 2.1. At an output level of 3 units, this competitive firm should
production -in order to maximize profits.
O not changc
O No answcr text provided.
O No answer text provided.
O change
5.

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8
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Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $250. Her variable costs are $1,000 for the first thousand posters, $800 for the second thousand, and then $750 for each additional thousand posters. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? 2,000? 10,000? What is her ATC per poster if she prints 1,000? 2,000? 10,000? If the market price fell to 70 cents per poster, would there be any output level at which Karen would not shut down production immediately?
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