Use the following table to answer the next question.OutputAverage Fixed CostAverage Variable CostAverage Total CostMarginal Cost1$300$100$400$1002150752255031007017060475731488056080140110650901401407431031461808381191562309331381712901030160190360The table shows cost data for a perfectly competitive firm. If the market price for the firm's product is $80, the firm will
A. produce 5 units to maximize profits.
B. produce 6 units to maximize profits.
C. produce 4 units to maximize profits.
D. shut down.
Answer: C
You might also like to view...
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
The term "currency drain" refers to an increase in currency held outside banks
Indicate whether the statement is true or false
The tragedy of the commons arises from the:
A. good being rival. B. good being excludable. C. combination of rivalry and nonexcludability. D. combination of rivalry and excludability.
A firm increases its price from $8 to $10 and sees demand for the product fall by 25%. What would the price elasticity of demand be for this product?
a. 0.75 b. 1 c. - 1 d. -1.25 e. 1.25