Question

Question 82 Not yet answered Points out of 1.oo Remove flag Scenario 14-2 Assume a certain firm is producing Q 1,000 units of output. At Q 1,000, the firm's marginal cost equals S20 and its average total cost equals $25. The firm sells its output for S30 per unit. Refer to Scenario 14-2. To maximize its profit, the firm should Select one: a. shut down. b. decrease its output but continue to produce. C. increase its output. O d. continue to produce 1,000 units. Question 89 Not yet answered Points out of 1.oo Remove flag Table 15-6 A monopolist faces the following demand curve: Quantity Price S15 S12 i, S3 Refer to Table 15-6. Suppose the monopolist has total fixed costs equal to S5 and a variable cost equal to S4 per unit for all units produced. What is the profit- maximizing price! Select one: O a. S15 O b. S9 c. $6 O d. SI2 Question 94 Not yet answered Points out of 1.00 Remove flag Figure 9-25 The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is S10 per unit. Price 45 40 35 30 25 20 15 10 Supply Demand 20 4 600100 120 140160 Quanity Refer to Figure 9-25. Suppose the government imposes a tariff of S5 per unit. The deadweight loss caused by the tariff is Select one: O a. $100. O b. S5 O c.$75. O d. $25.

Answer 1

Q82. Option c. As there is opportunity to get more profit

Q	MC	ATC	P	TR	TC	Profit
0	20	25	30	0	0	0
500	20	25	30	15000	12500	2500
1000	20	25	30	30000	25000	5000
1500	20	25	30	45000	37500	7500
2000	20	25	30	60000	50000	10000

Q84. Option b. =(2/4.5)*100 = 44.44 percent

Q89.Option d

Q	P	TC	TR	Profit
1	15	9	15	6
2	12	13	24	11
3	9	17	27	10
4	6	21	24	3
5	3	25	15	-10

Q 94. Option d

Frice 45 Surply 3 30 2 DWL 20 15 10 Demand 40 60 80 100 120 140 160Quantity 2

=0.5*10*(22.5-17.5) = 25