The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. At C, the firm sells 32 cars at $5,440. The profit associated with isoprofit A is $63,360. Based on this information, which of the following statements is correct? 8,000 Price, Marginal cost (5) 0 0 Select one: O O Quantity of cars, Q MC Isoprofit A Isoprofit B AC 100 a. The total revenue from selling 32 cars is $63,360. b. The firm can sell its 33rd car at $5,440. c. The average cost of producing 32 cars is lower than $5,440. O d. The firm's average cost and marginal cost are equal at the profit maximising point.
The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. At C, the firm sells 32 cars at $5,440. The profit associated with isoprofit A is $63,360. Based on this information, which of the following statements is correct? 8,000 Price, Marginal cost (5) 0 0 Select one: O O Quantity of cars, Q MC Isoprofit A Isoprofit B AC 100 a. The total revenue from selling 32 cars is $63,360. b. The firm can sell its 33rd car at $5,440. c. The average cost of producing 32 cars is lower than $5,440. O d. The firm's average cost and marginal cost are equal at the profit maximising point.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The figure depicts the demand curve of a firm producing cars,
together with its marginal cost, average cost, and isoprofit curves. At
C, the firm sells 32 cars at $5,440. The profit associated with isoprofit
A is $63,360. Based on this information, which of the following
statements is correct?
8,000
Price, Marginal cost (5)
0
0
Quantity of cars, Q
MC
Isoprofit A
Isoprofit B
AC
100
Select one:
O
a. The total revenue from selling 32 cars is $63,360.
O
b. The firm can sell its 33rd car at $5,440.
O
c. The average cost of producing 32 cars is lower than $5,440.
d. The firm's average cost and marginal cost are equal at the
profit maximising point.
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S
H
.
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