Exhibit 10-1A perfectly competitive producer has the following short-run average cost curve and marginal cost curve:SR AC = 2Q + 3MC = 4Q + 3where costs are measured in dollars and Q represents the firm's output in units.
If the market price of wangdoodles is $15 each, the profit-maximizing producer whose short-run cost curves are given in Exhibi should produce ____ wangdoodles.
A. 0
B. 3
C. 6
D. 15
Answer: B
You might also like to view...
According to the text, is there any relationship between bureaucratic inefficiency and economic growth?
A) Yes, bureaucratic inefficiency and economic growth are positively related. B) No. Some nations' economies grow rapidly despite their inefficient governments while others collapse with inefficient governments. C) Yes, but only in the most economically developed nations. D) Yes, bureaucratic inefficiency and economic growth are inversely related.
The figure above shows the marginal revenue and costs of a perfectly competitive firm. When 170 units are produced, the
A) firm has total revenue of $2,720. B) firm's total costs are less than $2,720. C) firm is making an economic profit. D) All of the above are true.
Moral hazard arises from
A) the difficulty of distinguishing good-risk borrowers from bad-risk borrowers. B) the likelihood that bad-risk borrowers are more likely to accept a loan than are good-risk borrowers. C) savers' difficulties in monitoring borrowers. D) borrowers' difficulties in locating savers.
The difference in total surplus between the socially efficient level of production and the monopolist's level of production is
a. offset by regulatory revenues. b. called a deadweight loss. c. equal to the monopolist's profit. d. Both b and c are correct.