Foundations of Economics, Student Value Edition (8th Edition)
8th Edition
ISBN: 9780134489230
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 15, Problem 3MCQ
To determine
Among the given options, identify the correct one on the basis of below statement:
In short run a firm shut down its production if the profit-maximizing quantity, _____ is to be determined.
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Consider the following short-run data for a perfect competitor. Use the data to answer the following questions. Justify your answers and calculations.
Quantity Demanded
Price
TC
TVC
MC
0
22
150
-
1
20
2
15
3
22
4
34
5
54
6
78
d) What is the profit maximizing level of output for this producer?
e) Calculate profits or losses at all levels of output.
Quantity sold
Price
3
$10
4
$10
5
$10
(a) In the above table, if the firm sells 5 units of output, what's total revenue?
(b) In the above table, if the quantity sold by the firm rises from 3 to 4, what's marginal revenue?
(c) In the above table, if the quantity sold by the firm rises from 5 to 6, what's average revenue?
Perfect Competition
MC - Marginal Cost
MR - Marginal Revenue
ATC - Average Total Cost
Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's profit will be:
$240
$160
$80
$60
Chapter 15 Solutions
Foundations of Economics, Student Value Edition (8th Edition)
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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