Question 15:
The efficient level for this firm is
A. 30 units equalizing MR to MC.
B. 18 units minimizing the ATC.
C. 13 units where the MC is equal to zero.
D. None of the above.
Homework Answers
Q13
Answer
Option D
The P=16 and MR=16 as the MR=P so the demand is a horizontal curve
so the firm is in the perfect competitive market.
======
Q14
Anser
Option C
The firm produces at MC=P to maximize profit
Profit=(P-ATC)*Q
P=16
ATC=7
Q=30
Profit=(16-7)*30
=270
The profit is $270
======
Q15
Answer
Option
B. 18 units minimizing the ATC.
The ATC is a minimum of 18 units and that is the efficient level of
output for the firm.
Add Answer to:
Question 15:
The efficient level for this firm is
A. 30 units equalizing MR to MC....
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A. Sarah’s price elasticity of demand is one because she is
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Q1. Sarah has decided to spend always $200 on clothing
per month. Which one of the statements below is true?
A. Sarah’s price elasticity of demand is one because she is
maintaining her clothing expenditures as a constant fraction of the
price.
B. Sarah’s income elasticity of demand is equal to zero because her
clothing expenditure does not depend on the price.
C. Sarah’s income elasticity of demand is infinite because she is
willing to spend a huge amount of...
Suppose MR = MC = $3 =MC=S3 at an output level of 2,000 units. If a monopolist produces and 2000 units, charging a price of 36 per unit and incurring average total cost of $5 per sit the monopolist will earn profit equal to: 1 $6,000. S4.000. $2,000. $1,000. For a firm with monopoly power that cannot engage in price discrimination: 2 the marginal revenue curve lies below the demand curve because any reduction in price applies only to the...
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