QUESTION 8 Barney produces fried chicken and is operating in a perfectly competitive market. Barney's profit maximising outpu chicken at the market price of $15.00 per set. His average total cost at this output is $11.00 per set and his averag $8.50 per set. His minimum average variable cost is $6.70 per set. Select the item from the list provided to make the following statements true. 1. $550 2. increase until $20 3. $125 4. $335 5. economic loss 6. $425 7. remain at $15 8. economic profit 9. normal profit 10. $975 The total fixed cost incurred by Barney at his profit maximsing output is Barney is currently making a/an After a long period of time, more and more people enter the market to sell fried chicken. One would expect the market price to per set. 11. accounting loss 12. decrease
QUESTION 8 Barney produces fried chicken and is operating in a perfectly competitive market. Barney's profit maximising outpu chicken at the market price of $15.00 per set. His average total cost at this output is $11.00 per set and his averag $8.50 per set. His minimum average variable cost is $6.70 per set. Select the item from the list provided to make the following statements true. 1. $550 2. increase until $20 3. $125 4. $335 5. economic loss 6. $425 7. remain at $15 8. economic profit 9. normal profit 10. $975 The total fixed cost incurred by Barney at his profit maximsing output is Barney is currently making a/an After a long period of time, more and more people enter the market to sell fried chicken. One would expect the market price to per set. 11. accounting loss 12. decrease
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 8
Barney produces fried chicken and is operating in a perfectly competitive market. Barney's profit maximising output is 50 sets of fried
chicken at the market price of $15.00 per set. His average total cost at this output is $11.00 per set and his average variable cost is
$8.50 per set. His minimum average variable cost is $6.70 per set.
Select the item from the list provided to make the following statements true.
1. $550
2. increase until $20
3. $125
V
The total fixed cost incurred by Barney at his profit
maximsing output is
Barney is currently making a/an
After a long period of time, more and more people enter the 4. $335
market to sell fried chicken. One would expect the market
price to
per set.
5. economic loss
6. $425
7. remain at $15
8. economic profit
9. normal profit
10. $975
11. accounting loss
12. decrease
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