Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 15, Problem 3MCQ
To determine
Among the given options, identify the correct one on the basis of below statement:
In short run a firm shut down its production if the profit-maximizing quantity, _____ is to be determined.
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Check out a sample textbook solutionStudents have asked these similar questions
I.
A company produces at an output level where marginal cost is equal to marginal revenue
and has the following revenue and cost levels:
Total revenue = $1,450
Total cost = $1,500
Total variable cost = $1,300
What would you suggest?
a. Shut down.
b. Continue to produce because the loss is less than the total fixed cost.
c. Increase production to lower the marginal cost.
e. Raise the price.
II.
At current long-run production levels, the marginal revenue of a competitive firm is $15 and
the marginal cost of the firm is $15. If the market is perfectly competitive, the firm should
a. cut back on production.
b. stop production all together.
c. produce more.
d. continue producing at current levels.
QUESTION 8
When the marginal-cost curve lies below the marginal-revenue curve
a.
the firm cannot improve its profit since revenue is already greater than cost.
b.
marginal revenue is greater than marginal cost, and the firm should therefore increase production to increase profits.
c.
marginal revenue is greater than marginal cost, and the firm should therefore decrease production to increase profits.
d.
marginal revenue is less than marginal cost, and the firm should therefore decrease production to increase profits.
e.
it is not possible for this firm to increase profits since it is failing to operate at an efficient point.
A firm that is producing the
quantity at which marginal cost
exceeds both average total cost
and the market price will
increase its economic profit by
a. producing a smaller
quantity b. producing a smaller
quantity c. raising the price to
equal marginal cost d.
producing the quantity that
minimises average total cost e.
producing a larger quantity
Chapter 15 Solutions
Foundations of Economics (8th Edition)
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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Similar questions
- The table provides data on a market demand schedule (top two rows) and a firm's average and marginal cost schedules (bottom four rows). 1. What is the firm's shutdown point? A firm will stop producing an output in the short run when the market price of the good is _________. A. below minimum AVC B. equals ATC C. below minimum ATC D. equals MC This firm's shutdown point is at a market price of $ ? per unit and its profit-maximizing output is ? units.arrow_forward14arrow_forwardTotal Marginal Marginal Quantity Price Revenue Revenue Total Cost Cost 0 14 0 2 1 12 12 6 2 10 20 9 3 8 24 12 4 6 24 20 5 4 20 35 Is the table above describing a firm in perfect competition? a. No, the price and quantity are positively related. b. You cannot tell from the given information. c. No, the price should be the same regardless of quantity for perfect competition. d. Yes, the price is falling by the same amount for each increase in quantity. Clear my choicearrow_forward
- The number of chairs that Cooper's Millworks can sell per day is given by the table below. Tables Sold Daily. Price Total Revenue Marginal Revenue Average Revenue 1 2 3 300 280 260 What is the missing value A? Answer: 300 560 A 300 260 B 110 280 Carrow_forwarda. Why, in perfect competition, is the marginal revenue curve perfectly elastic? b. Why is the marginal cost curve shaped the way it is?arrow_forwardAnswer "False" or "True" each of the following. Justify by relying on graphical analysis whenever possible. 1.- A company in perfect competition will maximize profits by equating average income to its marginal cost. 2.- For a company in perfect competition, the demand it faces is equal to the marginal product which is constant. plzz ansr first twoarrow_forward
- 1. The following table shows the cost information for a perfectly competitive firm. Production Total variable cost (RM)0 01 1002 1503 2104 2905 4006 5407 7208 950 a. If the total fixed cost of the firm is RM300, calculate total cost, average cost and marginal cost. b. If the market price is RM200, calculate the firm total revenue, and total profit/loss c. Determine the level of production that will maximise the firms profits.arrow_forward9. a corn farmer will tend to expand his output as long as the price of corn exceeds aversge variabke cost and: a) marginal cost is smaller than the market price b) marginal revenue is larger than the market price of corn c) marginal revenue is positive d) marginal revenue is kess than the market price of cornarrow_forwardThere are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. a. ABC gained market power through economies of scale government protection control of an important input . b. ABC’s market power does does not guarantee that the firm makes an economic profit.arrow_forward
- Help mearrow_forward1) Given the following cost and revenue schedule, find the profit-maximizing quantity. Calculate total profits, average cost and average revenue.. Quantity 0 10 20 30 40 50 60 70 Total Cost 400 500 625 775 950 1150 1375 1625 Total Revenue 0 600 900 1150 1350 1500 1600 1650 2) Plot the total revenue curve, total cost curve. 3) Given the cost and revenue schedule above, find the profit-maximizing quantity. Calculate the marginal cost and marginal revenue." 4) Plot the marginal cost curve and marginal cost curve. Apply the profit maximizing rule in the short-run. (arrow_forwardTyped plz and asap please provide a high quality solution give all steps as well as calculations and take care of plagiarism alsoarrow_forward
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