Use the following diagram, which shows the average and marginal cost structure of a perfectlycompetitive firm, to answer questions 28.) – 35.):Cost15B12101015 31.) Which curve represents the marginal cost of the firm?а.) Аb.) Вс.) Сd.) None of the above32.) What is the lowest market price this firm will choose to operate at in the short-run?а.) 5b.) 10с.) 12d.) 1533.) What is the lowest market price this firm will operate at in the long-rin?а.) 5b.) 10c.) 12d.) 1534.) Suppose that market price is $15. How much profit or loss will the firm make?a.) Profit of $3b.) Loss of $3c.) Profit of $45d.) Loss of $4535.) Which of the following is TRUE if the market price is $15?a.) The market is in long-run equilibrium.b.) The market is not in long-run equilibrium. In the long-run, the market price will fall.c.) The market is not in long-run equilibrium. In the long-run, the market price will increase. d.)Not enough information.

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31.) Which curve represents the marginal cost of the firm? a.) A b.) В с.) С d.) None of the above 32.) What is the lowest market price this firm will choose to operate at in the short-run? а.) 5 b.) 10 с.) 12 d.) 15 33.) What is the lowest market price this firm will operate at in the long-riin? а.) 5 b.) 10 c.) 12 d.) 15

31.) Which curve represents the marginal cost of the firm? a.) A b.) В с.) С d.) None of the above 32.) What is the lowest market price this firm will choose to operate at in the short-run? а.) 5 b.) 10 с.) 12 d.) 15 33.) What is the lowest market price this firm will operate at in the long-riin? а.) 5 b.) 10 c.) 12 d.) 15

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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