Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his only product) is $3. If the marginal cost function is MC=0.1q: (i) The profit-maximizing level of output is _____ (ii) The variable profit is _____ (iii) The producer surplus is _____ If Kenan also has a fixed cost of $50, then: (iv) The total profit is _____ If Kenan cannot avoid the fixed cost, Kenan should _____ Answer options (please only select from the following): -5, 0, 3, 5, 10, 30, 45, 50, continue to produce, shut down, other
Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his only product) is $3. If the marginal cost function is MC=0.1q: (i) The profit-maximizing level of output is _____ (ii) The variable profit is _____ (iii) The producer surplus is _____ If Kenan also has a fixed cost of $50, then: (iv) The total profit is _____ If Kenan cannot avoid the fixed cost, Kenan should _____ Answer options (please only select from the following): -5, 0, 3, 5, 10, 30, 45, 50, continue to produce, shut down, other
Chapter7: Perefect Competition
Section: Chapter Questions
Problem 5SQP
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Kenan's stationary shop operates in a
perfectly competitive market where the price for a pen (his only product) is $3. If the marginal cost function is MC=0.1q:(i) The profit-maximizing level of output is _____
(ii) The variable profit is _____
(iii) The
producer surplus is _____If Kenan also has a fixed cost of $50, then:
(iv) The total profit is _____
If Kenan cannot avoid the fixed cost, Kenan should _____
Answer options (please only select from the following): -5, 0, 3, 5, 10, 30, 45, 50, continue to produce, shut down, other
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