Refer to the data provided in Table 9.4 below to answer the question(s) that follow.
Table 9.4qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 11004014040 40 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.42Refer to Table 9.4. If the market price is $40, then to maximize profits this firm should produce
A. two units of output.
B. one unit of output.
C. zero units of output.
D. an output level of about four.
Answer: D
You might also like to view...
If Bank A holds $200 in reserves, deposits are $1000, and the desired reserve ratio is 15 percent, how much are excess reserves?
A) zero, because banks never hold excess reserves B) $200 C) $50 D) $150
In the IS-LM model, the implicit assumption made about aggregate supply was that the
a. aggregate supply schedule was vertical because prices were flexible. b. aggregate supply schedule was horizontal because prices were fixed. c. aggregate supply schedule was upward sloping to the right because wages and prices were fixed. d. supply of output was fixed. e. none of the above.
The above figure shows a graph of the market for pizzas in a large town. At a price of $5, there will be
A) excess demand. B) excess supply. C) equilibrium. D) zero demand.
That Table 8.1 shows a short-run situation is evident from
A) the linear marginal revenue function. B) the constant price. C) the increasing marginal cost. D) the presence of positive costs at Q = 0. E) the absence of marginal values at Q = 0.