Assume the price of a product sold by a purely competitive firm is $5. Given the data in the accompanying table, at what output is total profit highest in the short run?OutputTotal Cost20$702575308535100401254515550190
A. 20
B. 30
C. 50
D. 40
Answer: D
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John keeps beehives and sells 100 quarts of honey per month. The honey market is perfectly competitive, and the price of a quart of honey is $10. John has an average variable cost of $5 and an average fixed cost of $3
At 100 quarts per month, John's marginal cost is $10. a) Is John maximizing his profit? If not, what should John do? b) Calculate John's total revenue, total cost, and total economic profit or economic loss when he produces 100 quarts of honey.
Excess volatility refers to
A) the unwillingness of financial analysts to consistently recommend the same stocks. B) the greater volatility of futures prices compared to the volatility of prices of the underlying assets. C) the tendency for stocks with high rates of returns also to have quite variable returns. D) the larger movements in market prices of stock than in their fundamental values.
Refer to the table below. If the discount rate is 5 percent and the cost of the investment is $43,000, which of the following is true regarding a profit-maximizing manager?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) The manager should not make the investment because the net present value is positive.
B) The manager should make the investment because the net present value is positive.
C) The manager should not make the investment because the net present value is negative.
D) The manager should make the investment because the net present value is negative
What are the accurate coordinates of the new equilibrium price?
a. P1; Q2
b. P1 Q1
c. P2; Q1
d. P2; Q2