Table 10-1
Q (in units)
AFC (in dollars)
AVC (in dollars)
MC (in dollars)
0
C
C
C
2
2.5
18
10
4
1.25
14
14
6
0.83
18
42
8
0.63
30
94
10
0.5
50
170
In Table 10-1 are the short-run cost schedules of a perfectly competitive firm. If the market price of output is $50, the firm will produce ____ units and earn a profit of ____.
A. 6; $187.02
B. 6; $48
C. 8; $154.96
D. 8; $245.04
Answer: A
Economics
You might also like to view...
A(n) ________ is a subsidiary of a U.S. bank that is engaged primarily in international banking
A) Edge Act corporation B) Eurodollar agency C) universal bank D) McFadden corporation
Economics
Using potentially productive resources to try and obtain transfers from the government is called _____
a. vote trading b. logrolling c. agenda control d. rent seeking
Economics
If the price of a commodity is above marginal cost, then the economy will tend to
a. overproduce the item. b. underproduce the item. c. produce the optimal amount of the item. d. overproduce and underproduce the item cyclically.
Economics
Which of these is an advantage of long-term contracts in resource markets?
What will be an ideal response?
Economics