Exhibit 8-9 A firm's cost and marginal revenue
curves
In Exhibit 8-9, product price in this market is fixed at $14. This
firm is currently operating where MR = MC. What do you advise this
firm to do?
Group of answer choices
A. This firm should shut down.
B. This firm could increase profits by increasing output.
C. This firm could increase profits by decreasing output.
D. This firm should continue to operate at its current output.
E. This firm should decrease price.
Homework Answers
Answer
Option D
D. This firm should continue to operate at its current output.
A firm in the market produces at MR=MC if the P>AVC
P=$14 =MR=MC>AVC
so the firm operates to minimize losses as the loss is equal to fixed costs if the firm shut down and the loss is blow fixed cost if it operates so the firm continue to produce in the short run.
Add Answer to:
Exhibit 8-9 A firm's cost and marginal revenue
curves
In Exhibit 8-9, product price in this...
Exhibit 8-11 A firm's cost and marginal revenue curves In Exhibit 8-11, when the price is...
Exhibit 8-11 A firm's cost and marginal revenue curves In Exhibit 8-11, when the price is $5, the firm: Group of answer choices A. is making an economic profit of $21. B. should produce output equal to 10. C. is breaking even. D. should shut down. E. is having an economic loss but should continue as P>AVC. МC P MR = 8 8 АТC 7 6 Cost revenues 5 P MR 5 (dollars) 4 AVC 3 P MR 2 2...
Exhibit 8-7 A firm's cost and MR curves In Exhibit 8-7, if this firm is currently producing 20 units of output, this...
Exhibit 8-7 A firm's cost and MR curves In Exhibit 8-7, if this firm is currently producing 20 units of output, this firm: Group of answer choices A. is at its profit-maximizing point. B. could increase profits by increasing output. C. could increase profits by decreasing output. D. should shut down. E. should decrease price. Cost, 25 MR revenues 22 (dollars) 20 Quantity
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
need help with all of them Question 6 (1 point) In perfect competition, marginal revenue is the change in revenue from...
need help with all of them
Question 6 (1 point) In perfect competition, marginal revenue is the change in revenue from selling an additional unit of output the revenue in excess of what can be earned in the next-best alternative the last dollar needed to make zero economic profit the extra revenue generated by a $1 change in price the last dollar needed to make maximum profit Question 7 (1 point) In which of the following situations should a profit-maximizing...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
$ per unit MC ATC MR $40 AVC $20 2 4 6 8 10 12 Output (9) The graph above shows a firm's Marginal Revenue (MR), M...
$ per unit MC ATC MR $40 AVC $20 2 4 6 8 10 12 Output (9) The graph above shows a firm's Marginal Revenue (MR), Marginal Cost (MC), Average Total Cost (ATC) and Average Variable Cost (AVC). This firm is a profit-maximizing price taker. Find the firm's short run shutdown price. (Do not include a S sign in your response. Round to the nearest two decimal places if necessary.) Answer: Check
Exhibit 8-17 Marginal revenue and cost per unit curves As shown in Exhibit 8-17, the firm...
Exhibit 8-17 Marginal revenue and cost per unit curves As shown in Exhibit 8-17, the firm will produce in the short run if the price is: Group of answer choices A. more than $10 per unit. B. more than $15 per unit. C. more than $20 per unit. D. more than $30 per unit. E. more than $40 per unit. ATC 1 AVC Price and costs per unit (dollars) 0 20 100 40 60 80 Quantity of output (units per...
Exhibit 7-11 A firm's cost and marginal revenue curves -MC ATC 7 Cost, 6 revenues 5...
Exhibit 7-11 A firm's cost and marginal revenue curves -MC ATC 7 Cost, 6 revenues 5 (dollars) AVC 4 3 2 0 4 7 8 10 xhibit 7-11, when the price rises from $5 to $8, the profit-maximizing (or making a: ss to making a smaller loss. ofit to making a larger profit. to making a profit. it to making a loss. o making a larger loss.
Question 36 O out of 2 points Exhibit 8-16 Short-run cost curves for a competitive firm...
Question 36 O out of 2 points Exhibit 8-16 Short-run cost curves for a competitive firm 100 90 -MC Vd Cost per unit 70 ATC 60 50 (dollars) 40 30 20 10 AVC Quantity of output (units per hour) In Exhibit 8-16, the firm should shut down in the short run if the market price of its product falls below:
The graph below shows a monopolist's demand (D), marginal revenue (MR), marginal cost (MC), and average...
The graph below shows a monopolist's demand (D), marginal
revenue (MR), marginal cost (MC), and average total cost (ATC)
curves. Management wants to adjust the production output quantity
to maximize the firm's profits. What quantity should the firm aim
for?
Give your answer by dragging the Q line to a new position to mark
the quantity at which profit is as large as possible.
Price and cost ATC MC MR Quantity
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
need help with all of them
Question 6 (1 point) In perfect competition, marginal revenue is the change in revenue from selling an additional unit of output the revenue in excess of what can be earned in the next-best alternative the last dollar needed to make zero economic profit the extra revenue generated by a $1 change in price the last dollar needed to make maximum profit Question 7 (1 point) In which of the following situations should a profit-maximizing...
$ per unit MC ATC MR $40 AVC $20 2 4 6 8 10 12 Output (9) The graph above shows a firm's Marginal Revenue (MR), Marginal Cost (MC), Average Total Cost (ATC) and Average Variable Cost (AVC). This firm is a profit-maximizing price taker. Find the firm's short run shutdown price. (Do not include a S sign in your response. Round to the nearest two decimal places if necessary.) Answer: Check
Exhibit 7-11 A firm's cost and marginal revenue curves -MC ATC 7 Cost, 6 revenues 5 (dollars) AVC 4 3 2 0 4 7 8 10 xhibit 7-11, when the price rises from $5 to $8, the profit-maximizing (or making a: ss to making a smaller loss. ofit to making a larger profit. to making a profit. it to making a loss. o making a larger loss.
Question 36 O out of 2 points Exhibit 8-16 Short-run cost curves for a competitive firm 100 90 -MC Vd Cost per unit 70 ATC 60 50 (dollars) 40 30 20 10 AVC Quantity of output (units per hour) In Exhibit 8-16, the firm should shut down in the short run if the market price of its product falls below:
The graph below shows a monopolist's demand (D), marginal
revenue (MR), marginal cost (MC), and average total cost (ATC)
curves. Management wants to adjust the production output quantity
to maximize the firm's profits. What quantity should the firm aim
for?
Give your answer by dragging the Q line to a new position to mark
the quantity at which profit is as large as possible.
Price and cost ATC MC MR Quantity
Most questions answered within 3 hours.
-
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 24 minutes ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 1 hour ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 1 hour ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 4 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 4 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 4 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 4 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 4 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 5 hours ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 5 hours ago