Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table.Number of Mugs Per DayTotal Cost Per Day0$101$142$193$254$325$406$49 If the market for mugs is perfectly competitive, and mugs sell for $7.50 each, then at his profit-maximizing level of output, Chris will earn a ________ of ________ per day.
A. profit; $30
B. loss; $2
C. profit; $2
D. loss; $10
Answer: B
You might also like to view...
A society must make three sorts of decision: what goods to produce, how to produce them, and how to distribute them.
Answer the following statement true (T) or false (F)
Fast Ink wants to prevent Jet Ink from entering the ink market. If Fast Ink expands its capacity, the expansion can lead to all of the following except which one?
A) decrease Fast Ink's profit-maximizing quantity B) increase Fast Ink's profit-maximizing quantity C) decrease Fast Ink's marginal cost D) decrease Fast Ink's profit-maximizing price
The smaller the price elasticity of demand, the
a. steeper the demand curve will be through a given point. b. flatter the demand curve will be through a given point. c. more strongly buyers respond to a change in price between any two prices P1 and P2. d. smaller the decrease in equilibrium price when the supply curve shifts rightward from S1 to S2.
An open market sale of government securities by the Fed will cause which of the following?
A. an increase in the equilibrium quantity of reserves B. an increase in the federal funds rate C. all of these D. none of these