1)
Given the following cost information for a price-taking firm, what is the profit-maximizing quantity given a market price of $80.
Quantity | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Total Cost | 100 | 200 | 250 | 280 | 300 | 340 | 400 | 480 | 600 |
Group of answer choices
a Q = 0
b Q = 7
c Q = 5
d Q = 3
2)
Suppose a price-taking firm has the following costs:
Quantity | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Total Cost | 200 | 260 | 300 | 350 | 410 | 490 | 590 |
At which of the following prices would this firm earn the most profit?
Group of answer choices
a $40
b $80
c $100
d $50
1) Given the following cost information for a price-taking firm, what is the profit-maximizing quantity given...
Suppose a price-taking firm has the following costs: Quantity 0 1 2 3 4 5 6 Total Cost 200 260 300 350 410 490 590 At which of the following prices would this firm earn the most profit? Group of answer choices a $40 b $80 c $100 d $50
1) Given the following cost information for a price-taking firm, what is the maximum amount of profit that can be earned if the price is $60? Quantity 0 1 2 3 4 5 6 Total Cost 50 100 130 150 190 250 330 Group of answer choices a $300 b $40 c $30 d $50 2) Given the following cost information for a price-taking firm, what is the profit-maximizing quantity given a market price of $40? Quantity 0 1...
1) As quantity increases for a price-taking firm Group of answer choices a Total revenue may increase or decrease b Total revenue will increase c Marginal revenue will increase d Marginal revenue decreases 2) Suppose a price-taking firm has the following total costs. What is the profit-maximizing quantity the firm should produce assuming the price of the good is 60? Quantity 0 1 2 3 4 5 6 7 8 Total Cost 200 300 370 420 460 510 570 650...
1) A price-taking firm sells 2,000 units at a price of $7 each. If their AFC = $5 and their AVC = $3, how much profit will it make? Group of answer choices a profit = -2,000 b profit = 14,000 c profit = 4,000 d None of these answers e profit = 8,000 2) Assume there are 50 identical firms in a perfectly competitive (price-taking) market. Assume EACH firm has the cost structure given below. Quantity 0 1 2...
1) When we say that a firm is a price-taker, we are indicating that Group of answer choices a the firm takes the price established in the market and then tries to increase that price through advertising b the firm will have to take a lower price if it wants to increase the number of units that it sells c the firm can increase or decrease its rate of production and sales without having any significant effect on the price...
1) ChemCo is a price-taker able to receive $10 for each bottle of vitamins they sell. At the profit maximizing level of production their AVC = $5 and AFC = $3. Given the following points on their MC curve, what is their maximum possible profit? Quantity 0 100 200 300 400 500 600 Marginal Cost n/a $8 $4 $6 $8 $10 $15 Group of answer choices a No profit b $4000 c $5000 d $1000 e $500 2) Assume...
Assume a price-taking firm faces the following marginal costs: Quantity 0 1 2 3 4 5 6 Marginal Cost n/a 4 3 5 6 8 10 If the market price is $8 and this firm has no fixed costs, how much profit will it make? Group of answer choices a profit = 64 b profit = 14 c profit = 10 d profit = 40
1) Suppose a perfectly competitive (price-taking) market is made up of 100 identical firms. Each firm individually has the following costs: Quantity 0 1 2 3 4 5 6 Total Cost 10 16 20 27 36 46 58 Also assume the market demand curve is: Q Demanded 600 500 400 300 200 100 0 Price 4 7 9 10 12 15 20 What is the equilibrium price in this market? Group of answer choices a $12 b $9...
Suppose a firm faces the following costs: Quantity 0 1 2 3 4 5 6 7 8 Total Cost 200 300 350 370 400 460 540 640 760 Which of the following prices is the lowest price at which a price-taking firm would decide to produce rather than shutdown? Group of answer choices a P = 60 b P = 100 c P = 20 d P = 80 e P = 40
Suppose an industry is composed of 50 price-taking firms, each one possessing the cost structure given below: Quantity 0 1 2 3 4 5 6 Total Cost 100 150 180 240 320 420 550 Also assume the market demand curve contains the following points: Quantity Demanded 250 200 150 100 50 0 Price 0 30 60 80 100 130 What is the equilibrium price in this market? Group of answer choices a P = 60 b P =...