Question
Offered Price $6.00

To find the output at which the firm maximizes its profits

Question # 00542832
Subject: Economics
Due on: 06/09/2017
Posted On: 06/09/2017 01:43 AM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
90759
Tutorials:
90790
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

1.To find the output at which the firm maximizes its profits you MUST know the firm's

A. ATC

B. AVC

C. AFC

D. MC

2. To maximize profits, a firm should produce at an output up to the point where

A. the difference between the price and marginal cost is at its maximum

B. total cost equals total revenue

C. price equals marginal cost

D. total revenue equals variable cost

3. STATEMENT I. Marginal revenue is the additional revenue from selling one more unit of output. STATEMENT II. A firm will always produce at an output at which marginal revenue is greater than marginal cost, except when it is minimizing its losses.

A. statement I is true and statement II is false.

B. Statement I is false and statement II is false.

C.Both statements are true

D. Both statements are false

4. The firm's short-run supply curve runs up the marginal cost curve

A. to the shutdown point

B. from the shutdown point all the way up the curve

C. to the break-even point.

D. from the break-even point all the way up the curve.

5. which statement is true?

A. the minimum point on the firm's marginal cost curve is the shut-down point.

B. the minimum point on the firm's marginal cost curve is the break-even point.

C. the minimum point on the firm's average variable cost curve is the shut-down point.

D. the minimum point on the firm's average total cost curve is the shut-down point.

6. At the level of output where marginal revenue equals marginal cost, assume that the price of a competitive firm's product is between the firm's average total cost curve and its average variable cost curve. In this case the firm would

A. decrease output to reduce the cost

B. continue to operate in the short run

C. shut down

D. increase output to increase profit

E. continue to operate idefinitely

Tags profits maximizes firm output cost point curve marginal firms statement output revenue shutdown total equals firm false average minimum variable breakeven true price statements produce profits operate continue increase product competitive aume idefinitely profit

Tutorials for this Question
Available for
$6.00

To find the output at which the firm maximizes its profits

Tutorial # 00539998
Posted On: 06/09/2017 01:44 AM
Posted By:
Best Tutors for school students, college students dr.tony
Expert tutors with experiences and qualities
Questions:
90759
Tutorials:
90790
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview …at xxxxx the xxxx…
Attachments
To_find_the_output_at_which_the_firm_maximizes_its_profits.ZIP (18.96 KB)
Preview not available.
Purchase this Tutorial @ $6.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
Loading...