This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.
Quantity
Price
Marginal Cost
Average Total Cost
0
$50
--
--
1
$45
$30
$40
2
$40
$24
$32
3
$35
$14
$26
4
$30
$10
$22
5
$25
$12
$20
6
$20
$32
$22
7
$15
$50
$26
8
$10
$74
$32
9
$5
$104
$40
10
$0
$140
$50
Refer to Table 16-4. How much profit will this firm earn when it chooses its output to maximize profit?
a.
an $8 profit
b.
a $12 loss
c.
a $25 profit
d.
a $32 profit
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.
|
Quantity |
Price |
Marginal Cost |
Average Total Cost |
|
0 |
$50 |
-- |
-- |
|
1 |
$45 |
$30 |
$40 |
|
2 |
$40 |
$24 |
$32 |
|
3 |
$35 |
$14 |
$26 |
|
4 |
$30 |
$10 |
$22 |
|
5 |
$25 |
$12 |
$20 |
|
6 |
$20 |
$32 |
$22 |
|
7 |
$15 |
$50 |
$26 |
|
8 |
$10 |
$74 |
$32 |
|
9 |
$5 |
$104 |
$40 |
|
10 |
$0 |
$140 |
$50 |
Refer to Table 16-4. How much profit will this firm earn when it chooses its output to maximize profit?
| a. |
an $8 profit |
|
| b. |
a $12 loss |
|
| c. |
a $25 profit |
|
| d. |
a $32 profit |
Related textbook solutions
Related questions
QUESTION 17
[Table 2] This firm will maximize its profit if it produces at the point when:
| a. | Profit is maximized. | |
| b. | Total revenue is maximized. | |
| c. | Total Cost is minimized. | |
| d. | All of the above | |
| e. | None of the above |
4 points
QUESTION 18
[Table 2] This firm will maximize its profit if it produces at the point when:
| a. | Profit is maximized. | |
| b. | Marginal cost is equal to marginal revenue | |
| c. | Firm cannot be better off by producing more or less quantity | |
| d. | A quantity of 13 units | |
| e. | All of the above |
4 points
QUESTION 19
[Table 2] This firm will maximize its profit if it produces the following quantity:
Table 2
| -1 | -2 | -3 | -4 | -5 | -6 | -7 |
| Quantity Sold | Marginal Revenue | Marginal | Total | Total | Profit | |
| Price | Cost | Cost | Revenue | |||
| $10 | 10 | 80 | $100 | $20 | ||
| $10 | 11 | (A) | 8 | 88 | $110 | $22 |
| $10 | 12 | (B) | (E) | 97 | (G) | (I) |
| $10 | 13 | (C) | (F) | 107 | (H) | (J) |
| $10 | 14 | (D) | 11 | 118 | $140 | $22 |
| a. | $9 | |
| b. | $10 | |
| c. | $11 | |
| d. | $13 | |
| e. | $14 |
4 points
QUESTION 20
[Table 2] If price increases from $10 to $11, this firm will maximize its profit if it produces the following quantity:
Table 2
| -1 | -2 | -3 | -4 | -5 | -6 | -7 |
| Quantity Sold | Marginal Revenue | Marginal | Total | Total | Profit | |
| Price | Cost | Cost | Revenue | |||
| $10 | 10 | 80 | $100 | $20 | ||
| $10 | 11 | (A) | 8 | 88 | $110 | $22 |
| $10 | 12 | (B) | (E) | 97 | (G) | (I) |
| $10 | 13 | (C) | (F) | 107 | (H) | (J) |
| $10 | 14 | (D) | 11 | 118 | $140 | $22 |
| a. | $9 | |
| b. | $10 | |
| c. | $11 | |
| d. | $12 | |
| e. | $14 |
4 points
QUESTION 21
A perfectly competitive firm should increase its level of production as long as
| a. | total revenue is less than total cost. | |
| b. | the total revenue curve is rising. | |
| c. | marginal revenue is greater than marginal cost. | |
| d. | the marginal revenue curve is rising. |
