Question Figure 7.11 depicts the demand curve for Beautiful Cars, together with the marginal cost and isoprofit curves. At point E, the quantity-price combination is (Q*, P*) = (32, 5,440) and the profit is $63,360. Suppose that the firm chooses instead to produce Q = 32 cars and sets the price at P = $5,400. Which of the following statements is correct? 10.000 .000 Marginal cast iseprofit curve 50prafit carve $30,000 Demend curve 100 120 Quantity of cars, Q O The profit is reduced to $62.080. O The average cost of production is $3.400. O The profit remains the same at S63.360. The firm is unable to scll all the cars. Price, marginal cost (S)

Question Figure 7.11 depicts the demand curve for Beautiful Cars, together with the marginal cost and isoprofit curves. At point E, the quantity-price combination is (Q, P) = (32, 5,440) and the profit is $63,360. Suppose that the firm chooses instead to produce Q = 32 cars and sets the price at P = $5,400. Which of the following statements is correct? 10.000 .000 Marginal cast iseprofit curve 50prafit carve $30,000 Demend curve 100 120 Quantity of cars, Q O The profit is reduced to $62.080. O The average cost of production is $3.400. O The profit remains the same at S63.360. The firm is unable to scll all the cars. Price, marginal cost (S)

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: Factor Markets: With Emphasis On The Labor Market

Section: Chapter Questions

Problem 4QP: Compare the firms least-cost rule with how buyers allocate their consumption dollars.

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