4. Suppose we have another firm known as Sepanyan Corporation which makes a product known asYeghias. Suppose the firm’s FC=$8,000 and its TC=$10,000 and its AVC=$5. What is the ATC?a) $25.00b) $67.50c) $100.25d) $200e) Not enough information 5. Which of the following is true concerning a competitive firm?a) It will produce even when its economic profit is zerob) It prefers not to maximize profitsc)t is the only firm in the marketd) Its quantity choice will affect the market pricee) People’s PED for the firm’s specific product is inelastic

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Asked Nov 18, 2019
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4. Suppose we have another firm known as Sepanyan Corporation which makes a product known as
Yeghias. Suppose the firm’s FC=$8,000 and its TC=$10,000 and its AVC=$5. What is the ATC?
a) $25.00
b) $67.50
c) $100.25
d) $200
e) Not enough information
 
5. Which of the following is true concerning a competitive firm?
a) It will produce even when its economic profit is zero
b) It prefers not to maximize profits
c)t is the only firm in the market
d) Its quantity choice will affect the market price
e) People’s PED for the firm’s specific product is inelastic
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Given information-

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FC $8,000 TC $10,000 AVC $5

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Step 3

Total cost is the sum total of fix...

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TC FC+VC s10,000=S8,000+VC VC-s10,000-S8,000 VC-$2,000

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