49
When MC = 5 and MR = 10
Then the firm is producing at a level where MC < MR, so it should increase production until MC = MR to maximize profit
Therefore the firm is under-producing
Second option is correct
50
A firm should increase its production when MR is more than MC to maximize profits
First option is correct
QUESTION 49 A firm is currently producing where MC=$5 and MR=$10. This firm is O profit-maximizing...
QUESTION 49 A firm is currently producing where MC-55 and MR-$10. This firm is profit-maximizing under-producing over-producing no conclusion can be made QUESTION 50 2 poin A firm should increase its production when marginal revenue rises and marginal cost stays the same marginal cost rises and marginal revenue stays the same both marginal cost and marginal revenue are falling both marginal cost and marginal revenue are rising Question Completion Status: If the firm produces 120 units of output with 12...
Question Completion Status: QUESTION 44 Which of the following is an implicit cost? • Salaries paid to owners who work for the firm Interest on money borrowed to finance equipment purchases • cash payment for raw materials • foregone rent on office space owned and used by the firm QUESTION 45 When a firm's only variable input is labor, then the slope of the production function measures the • quantity of labor • quantity of output total cost • marginal...
At a firm's current level of production, marginal revenue is greater than marginal cost (MR>MC).A profit-maximizing firm will increase prices. increase output decrease output. O shut down.
QUESTION 46 of the firm produces 120 units of output with 12 workers, what is the average product of labor? 10 units 12 workers 120 units 1200 units QUESTION 47 If the firm produces 120 units of output with 12 workers and 121 units of putput with 13 work 10 units duct of labor 1 unit 121 units QUESTION 43 Which of these assumption is realistic for a firm in the short run? Both the stre of the factory and...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not likely earn an economic profit in the long run. shut down in the short run if price is less than average variable cost. all of the above. QUESTION 6 A monopolistic competitive firm is inefficient because the firm: earns positive economic profit in the long run. is producing at an output corresponding to the condition that marginal cost equals price. is not maximizing its...
12. A firm is producing at an output level where AR = MC > AC > MR = 0 a. Is this firm maximizing profits? b. Is this firm maximizing revenue(sales)? c. Is it making more than normal profits? d. Could this firm decrease average costs by increasing production? e. Could this firm increase total revenue by increasing production? 13. Do the same for: AC = AR > MR > MC > 0 14. Also for the following: AR=MR=MC=AC (what...
At a firm's current level of production, marginal revenue is less than marginal cost (MR<MC). A profit- maximizing firm will decrease prices. increase output O decrease output. shut down.
If a perfectly competitive firm is producing 2,000 units and , at the 2,000th unit, the difference between marginal revenue and marginal cost (MR-MC) is zero, which of the following is true? A) The firm should exactly double production to maximize profit B) The firm should decrease production to maximize profit C)The firm is maximizing profit D)The firm should increase production to maximize profit
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit?b. what is the marginal cost?c. what is its average variable cost?d. is the efficent scale of the firm more than, less than, or equal to 100 units?