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1) When the market price is 10,  MC=2q where q is quantity. Suppose the firm choose not shutting down, how many units of output will the firm produce? A) 10 B) 2 C) 5 D) 1 2)When the market price is 10,  MC=2q where q is quantity. Suppose ATC=5 and AVC=3, will the firm shut down?  How much is the  profit? A) Shut down, Profit= - 10 B) shut down, profit=10 C)Do not shut down, profit=25 D)Do not shut down, profit=50 3) When the market price is 2,  MC=2q where q is quantity. Suppose ATC=5 and AVC=3, will the firm shut down?  How much is the  profit?  A) Shut down, profit= - 3 B) Shut down,  profit= - 2 C) Do not shut down, profit= - 3 D) Do not shut down, profit=-2

1) When the market price is 10,  MC=2q where q is quantity. Suppose the firm choose not shutting down, how many units of output will the firm produce? A) 10 B) 2 C) 5 D) 1 2)When the market price is 10,  MC=2q where q is quantity. Suppose ATC=5 and AVC=3, will the firm shut down?  How much is the  profit? A) Shut down, Profit= - 10 B) shut down, profit=10 C)Do not shut down, profit=25 D)Do not shut down, profit=50 3) When the market price is 2,  MC=2q where q is quantity. Suppose ATC=5 and AVC=3, will the firm shut down?  How much is the  profit?  A) Shut down, profit= - 3 B) Shut down,  profit= - 2 C) Do not shut down, profit= - 3 D) Do not shut down, profit=-2

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 5CQ
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1) When the market price is 10,  MC=2q where q is quantity. Suppose the firm choose not shutting down, how many units of output will the firm produce?

A) 10

B) 2

C) 5

D) 1

2)When the market price is 10,  MC=2q where q is quantity. Suppose ATC=5 and AVC=3, will the firm shut down?  How much is the  profit?

A) Shut down, Profit= - 10

B) shut down, profit=10

C)Do not shut down, profit=25

D)Do not shut down, profit=50

3) When the market price is 2,  MC=2q where q is quantity. Suppose ATC=5 and AVC=3, will the firm shut down?  How much is the  profit? 

A) Shut down, profit= - 3

B) Shut down,  profit= - 2

C) Do not shut down, profit= - 3

D) Do not shut down, profit=-2

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