Price, P (€); cost 3.70 2.50 2 0 20 O 40 60 80 140 120 100 Quantity of loaves, Q 160 180 Marginal cost curve €80 Firm's demand curve 200 Isoprofit curve: €200 Isoprofit curve: Zero-economic- profit curve (AC curve) Select one: a. If the market price rises to 3.70, the bakery's profit increases to 200. The diagram shows a price-taking bakery's marginal and average cost curves, and its isoprofit curves. The current m... for bread is P*= 2.50. Which of the following statements is correct? b. The bakery's supply curve is horizontal. c. The bakery maximises its profits when the price is equal to the average cost. d. The bakery maximises its profits by supplying 160 loaves. e. The bakery's profit is 200.
Price, P (€); cost 3.70 2.50 2 0 20 O 40 60 80 140 120 100 Quantity of loaves, Q 160 180 Marginal cost curve €80 Firm's demand curve 200 Isoprofit curve: €200 Isoprofit curve: Zero-economic- profit curve (AC curve) Select one: a. If the market price rises to 3.70, the bakery's profit increases to 200. The diagram shows a price-taking bakery's marginal and average cost curves, and its isoprofit curves. The current m... for bread is P*= 2.50. Which of the following statements is correct? b. The bakery's supply curve is horizontal. c. The bakery maximises its profits when the price is equal to the average cost. d. The bakery maximises its profits by supplying 160 loaves. e. The bakery's profit is 200.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...
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