EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 10, Problem 6DQ
To determine
Marginal cost curve and variable cost curve in the pure competition.
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4. Various measures of cost
Suppose the imaginary company of Roobek is a small, Jackson-based American apparel manufacturer specializing in athleisure. The following table
presents the brand's total cost of production at several different quantities.
Fill in the remaining cells of the following table.
Quantity Total Cost Marginal Cost
(Pairs) (Dollars) (Dollars)
0
1
2
3
4
LO
5
6
120
200
240
285
340
425
540
Fixed Cost Variable Cost
(Dollars) (Dollars)
Average Variable Cost
(Dollars per pair)
Average Total Cost
(Dollars per pair)
In the table below, the firm;
Output Total Revenue Total Cost
$0
$30
$60
$90
$120
$150
$180
$25
$49
$69
$91
$117
$147
$180
O a. cannot be in a perfectly competitive industry, because its short-run economic profits
are greater than zero.
O b. must be in a perfectly competitive industry, because its marginal cost curve
eventually rises.
O c. cannot be in a perfectly competitive industry, because its long-run economic profits
are greater than zero
O d. must be in a perfectly competitive industry, because its marginal revenue is constant.
123 456
The figure shows a perfectly competitive firm. The firm is operating; that is, it has not shut down. The firm produces
O A. 20 units of output and earns a normal profit.
MC
ATC
50
B. 10 units of output and incurs an economic loss.
40
O C. 10 units of output and earns a normal profit.
O D. 20 units of output and incurs an economic loss.
30
MR
20
10
10
30
40
Quantity (per day)
Price and costs (dollars)
20
Chapter 10 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
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Similar questions
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