Exhibit 8-10 Price and cost data for a firm Q P AVC ATC MC 0 $7 - - - 1 7 3 5 5 2 7 5 6 7 3 7 7....
Exhibit 8-10 Price and cost data for a firm
| Q | P | AVC | ATC | MC |
| 0 | $7 | - | - | - |
| 1 | 7 | 3 | 5 | 5 |
| 2 | 7 | 5 | 6 | 7 |
| 3 | 7 | 7.3 | 8 | 12 |
| 4 | 7 | 9.5 | 10 | 16 |
In Exhibit 8-10, following the rule regarding MR and MC, the
most profitable output level is:
Group of answer choices
A. 0.
B. 1.
C. 2.
D. 3.
E. 4.
Homework Answers
Answer
Option C
2 units
====
MR is equal to P as the P is constant
A firm maximizes profit at MR=MC
as the profit is a sum of marginal profit and the marginal profit
is
MR-MC
so the profit is maximum when MR-MC=0 then MR=MC at profit
maximum
MR=MC=$7 where Q=2 units and also the P>AVC
so the firm produces 2 units
Add Answer to:
Exhibit 8-10 Price and cost data for a firm Q P AVC ATC MC 0 $7 - - - 1 7 3 5 5 2 7 5 6 7 3 7 7....
Question 8 (Mandatory) (5 points) MC ATC AVC 13 MR Price 00 6 4 0 10...
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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...
$14 $13 $12 MC $11 $10 MR $9 ATC $8 Price of Hats $7 AVC $6...
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Exhibit 12-6 MC ATC AVC -P-MR-AR Quantity (firm) for this firm is represented by the area of Refer to Exhibit 12-6...
Exhibit 12-6 MC ATC AVC -P-MR-AR Quantity (firm) for this firm is represented by the area of Refer to Exhibit 12-6. The short run profit; OP,Bq loss; OP Bq profit; PABP loss; PABP Price
Trust but verify. Exhibit 11-10 MC ATC AVC .AFC Quantity Refer to Exhibit 11-10. At output...
Trust but verify.
Exhibit 11-10 MC ATC AVC .AFC Quantity Refer to Exhibit 11-10. At output level Q. total cost equals: area ADQ0 area ADEB area ADFC area BEQ0 Dollars
MC ATC Cost of Flashlights $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2...
MC ATC Cost of Flashlights $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 0 1 AVC 2 3 4 5 6 7 8 9 10 Quantity of Flashlights The above graph shows the average total cost (ATC) marginal cost (MC) and average variable cost (AVC) for a flashlight producer. What is this producer's fixed costs? $7 $10 $13 $5 $
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...
MC ATC AVC 10 7 5 2 0 At which of the following prices will the...
MC ATC AVC 10 7 5 2 0 At which of the following prices will the firm shown in the accompanying graph make an economic profit? Multiple Cholce $2 $5 $7 $10
L K Q VC FC TC AVC AFC ATC MC 0 5 0 0 5 5...
L K Q VC FC TC AVC AFC ATC MC 0 5 0 0 5 5 1 5 2 2 5 7 1.00 2.50 3.50 1.00 2 5 6 4 5 9 0.67 0.83 1.50 0.50 3 5 12 6 5 11 0.50 0.42 0.92 0.33 4 5 19 8 5 13 0.42 0.26 0.68 0.29 5 5 25 10 5 15 0.40 0.20 0.60 0.33 6 5 28 12 5 17 0.43 0.18 0.61 0.67 7 5 29 14...
Exhibit 8-9 A firm's cost and marginal revenue curves In Exhibit 8-9, product price in this...
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...
Question 8 (Mandatory) (5 points) MC ATC AVC 13 MR Price 00 6 4 0 10 15 28 31 20 Quantity Reference: Ref 24-3 In the figure above, to maximize profits or minimize losses the firm should produce units. OA) 15 B) 20 C) 28 OD 10 Question 11 (Mandatory) (5 points) MC ATC AVC 13- MR Price 9 8 A 0 4 10 15 28 20 Quantity Reference: Ref 24-3 In the figure above, the firm A) could make...
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...
$14 $13 $12 MC $11 $10 MR $9 ATC $8 Price of Hats $7 AVC $6 $5 $4 $3 $2 $1 $0 0 1 2. 3 4 5 6 7 8 9 10 Quantity of Hats The graph above show information about costs and revenue for a small hat factory in a perfectly competitive market. How much profit does the hat factory make? $16 $12 $8 $10
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Trust but verify.
Exhibit 11-10 MC ATC AVC .AFC Quantity Refer to Exhibit 11-10. At output level Q. total cost equals: area ADQ0 area ADEB area ADFC area BEQ0 Dollars
MC ATC Cost of Flashlights $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 0 1 AVC 2 3 4 5 6 7 8 9 10 Quantity of Flashlights The above graph shows the average total cost (ATC) marginal cost (MC) and average variable cost (AVC) for a flashlight producer. What is this producer's fixed costs? $7 $10 $13 $5 $
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