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Question 5 Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens. Output per period TFC ($) TVC ($) 10 20 3 5 30 6 40 10 50 15 TABLE 9-3 Refer to Table 9-3. This firm would produce no output in the short run if the market price of its output dropped below $0.15. dropped below $0.20. dropped below $0.30. dropped below $2.00. dropped below $3.00. O0000

Question 5 Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens. Output per period TFC ($) TVC ($) 10 20 3 5 30 6 40 10 50 15 TABLE 9-3 Refer to Table 9-3. This firm would produce no output in the short run if the market price of its output dropped below $0.15. dropped below $0.20. dropped below $0.30. dropped below $2.00. dropped below $3.00. O0000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 6E
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Moving to another question will save this response. Question 5 Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens. Output per period TVC ($) TFC ($) 10 2 20 3 5 30 40 10 50 15 5 TABLE 9-3 Refer to Table 9-3. This firm would produce no output in the short run if the market price of its output dropped below $0.15. dropped below $0.20. dropped below $0.30. dropped below $2.00. dropped below $3.00. 200000
Transcribed Image Text:Moving to another question will save this response. Question 5 Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens. Output per period TVC ($) TFC ($) 10 2 20 3 5 30 40 10 50 15 5 TABLE 9-3 Refer to Table 9-3. This firm would produce no output in the short run if the market price of its output dropped below $0.15. dropped below $0.20. dropped below $0.30. dropped below $2.00. dropped below $3.00. 200000
Quèstion 9 Suppose ABC Corp. is a firm producing newsprint in a perfectly competitive industry. We have the following information about the firm's production: - output (Q) = 1500 tonnes per month - average total cost (ATC) = $627 per tonne - average variable cost (AVC) = $614 per tonne - marginal revenue (MR) = $620 per tonne - marginal cost (MC) = $620 per tonne In the short run, this firm should reduce output because the price per tonne is less than ATC. O increase output because MR is greater than AVC. O shut down because the firm is incurring economic losses. O maintain production at the current level. Not possible to determine because the price of the product is not known.
Transcribed Image Text:Quèstion 9 Suppose ABC Corp. is a firm producing newsprint in a perfectly competitive industry. We have the following information about the firm's production: - output (Q) = 1500 tonnes per month - average total cost (ATC) = $627 per tonne - average variable cost (AVC) = $614 per tonne - marginal revenue (MR) = $620 per tonne - marginal cost (MC) = $620 per tonne In the short run, this firm should reduce output because the price per tonne is less than ATC. O increase output because MR is greater than AVC. O shut down because the firm is incurring economic losses. O maintain production at the current level. Not possible to determine because the price of the product is not known.
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