Revenue and cost (dollars per unit) 50 40 MC........... ATC AVC 30 20 20 10 0 10 20 30 40 50 Output (units per day) The above figure shows a perfectly competitive firm. If the market price is $15 per unit, the firm will definitely shut down to minimize its losses. ○ will stay open to produce and will make an economic profit. O will stay open to produce and will make zero economic profit. O will stay open to produce and will incur an economic loss.

Revenue and cost (dollars per unit) 50 40 MC........... ATC AVC 30 20 20 10 0 10 20 30 40 50 Output (units per day) The above figure shows a perfectly competitive firm. If the market price is $15 per unit, the firm will definitely shut down to minimize its losses. ○ will stay open to produce and will make an economic profit. O will stay open to produce and will make zero economic profit. O will stay open to produce and will incur an economic loss.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition

Section: Chapter Questions

Problem 6E

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Q23 Suppose a perfectly competitive firm is currently operating with the following information: Output = 1500 tonnesAverage total cost = $627 per tonneAverage variable cost = $614 per tonneMarginal revenue = $620 per tonneMarginal cost = $620 per tonneAt the current level of output, this firm is _____ profit and is an earning economic profit of _____. a. Maximising; -$10500. b. Not maximising; -$10500. c. Maximising; $10500. d. Maximising; $9000. e. Not maximising; -$9000.
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16 $20 $18 MC АТС i of $16 P = MR $14 $12 AVC $10 $8 $6 $4 $2 $0 200 400 600 800 1,000 1,200 Output (Q) The diagram above shows a Perfectly Competitive firm in the short-run. At the profit maximizing Output (Q) level, the firm will earn a Total Profit of: Select one: а. $1,000 b. $1,600 с. $3,200 d. $2,000
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Required information The following figure shows the costs for a perfectly competitive producer. AVC, ATC, MC $45 40 35 30 25 201 15 10 5 0 C 10 20 30 40 50 60 70 80 90 100 ATC AVC Output per period Refer to the above figure to answer this question. If the price of the product is $35, what is the profit-maximizing output?
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