What are total fixed costs for the Zonker Company? $0 $8 $12 $20 2. The marginal cost to the Zonker Company of producing the third unit of output is $__________ and the marginal cost of producing the sixth unit of output is $__________. $10; $25 $36; $93 $24; $81 $25; $40 3. If the market price is $15 per unit and Zonker can sell all it wants at that price, then Zonker maximizes profit in the short run by producing __________ units per week. 5 3 4 0
- What are total fixed costs for the Zonker Company?
- $0
- $8
- $12
- $20
2. The marginal cost to the Zonker Company of producing the third unit of output is $__________ and the marginal cost of producing the sixth unit of output is $__________.
-
- $10; $25
- $36; $93
- $24; $81
- $25; $40
3. If the market price is $15 per unit and Zonker can sell all it wants at that price, then Zonker maximizes profit in the short run by producing __________ units per week.
-
- 5
- 3
- 4
- 0
4. If the market price fell to $11 per unit, Zonker maximizes profit in the short run by producing __________ units per week.
a. 1
b. 2
c. 3
d. 0
5. The lowest short run
-
- 2
- 3
- 4
- 5
6. if the price-taking firm in Exhibit 0126 is currently producing 6 units, then to maximize profits in the short run, it should
-
- keep producing 6 units
- increase production to 13 units
- increase production to 14 units
- increase production to 8 units
- shut down immediately
7. Claude’s Copper Clappers sells clappers for $65 each in a
-
- increase output
- reduce output but not to zero
- maintain the present rate of output
- shut down
- raise price
8. A price taker in a perfectly competitive industry is currently selling 6000 units per month at the market price of $8 per unit. Monthly total variable costs are $50,000 and total fixed costs are $20,000. Marginal cost is $8 per unit and rising. Economic profits
a. are equal to zero
b. are greater than zero
c. are less than zero
d. cannot be determined
9. Choose two (2) of the incorrect answers to multiple choice Question #7 (Claude’s Copper Clappers problem) and explain why they are incorrect.
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