Submitted by: Submitted by cinderella
Views: 161
Words: 1276
Pages: 6
Category: Business and Industry
Date Submitted: 05/28/2014 07:53 AM
Consider the following diagram where a perfectly competitive firm faces a price of $40.
Figure 8.1
1) Refer to Figure 8.1. The profit-maximizing output is
A) 30.
B) 54.
C) 60.
D) 67.
E) 79.
2) Refer to Figure 8.1. The firm earns zero profit at what output?
A) 0.
B) 34 and 79.
C) 54.
D) 60.
E) 67.
3) Refer to Figure 8.1. At 67 units of output, profit is
A) maximized and zero.
B) maximized and negative.
C) maximized and positive.
D) not maximized, and zero.
E) not maximized, and negative.
4) Refer to Figure 8.1. At the profit-maximizing level of output, ATC is
A) $26.
B) $30.
C) $31.
D) $40.
E) $44.
5) Refer to Figure 8.1. At the profit-maximizing level of output, AVC is
A) $22.
B) $26.
C) $30.
D) $32.
E) $40.
6) Refer to Figure 8.1. At the profit-maximizing level of output,
A) AVC is minimized.
B) ATC is minimized.
C) MC is minimized.
D) total cost is minimized.
E) no costs are minimized.
7) Refer to Figure 8.1. At the profit-maximizing level of output, total revenue is
A) $1200.
B) $2160.
C) $2400.
D) $2680.
E) $3160.
8) Refer to Figure 8.1. At the profit-maximizing level of output, total profit is
A) -$120.
B) $0.
C) $432.
D) $600.
E) $603.
Table 8.1
Q | P | TR | MR | TC | MC |
0 | $30 | $0 | --- | $15 | --- |
1 | $30 | $30 | $30 | $25 | $10 |
2 | $30 | $60 | $30 | $40 | $15 |
3 | $30 | $90 | $30 | $60 | $20 |
4 | $30 | $120 | $30 | $85 | $25 |
5 | $30 | $150 | $30 | $115 | $30 |
6 | $30 | $180 | $30 | $150 | $35 |
14) Refer to Table 8.1. That the firm is perfectly competitive is evident from its
A) increasing marginal cost.
B) increasing total cost.
C) zero economic profits.
D) constant marginal revenue.
E) absence of marginal values at Q = 0.
15) Refer to Table 8.1. The maximum profit available to the firm is
A) $20.
B) $30.
C) $35.
D) $155.
E) $180....