MC $80 ATC $64 $62 $60 AVC $42 $37 80 100 140 200 a The graph above shows the cost curves for Ollie's Oranges, a small citrus producer in Florida. Use this information to answer questions #18-21. 18. If the market price of oranges is $42 per crate, what is the short-run profit maximizing level of output for this firm? a. q =0 b. q = 80 c. q = 100 d. q = 140 e. q= 200 19. How much profit will Ollie's Oranges earn in the short-run if it is producing at the profit maximizing level of output that you identified in the previous problem? a. -$2,000 b. -$1800 c. $0 d. $500 e. $4,200

MC $80 ATC $64 $62 $60 AVC $42 $37 80 100 140 200 a The graph above shows the cost curves for Ollie's Oranges, a small citrus producer in Florida. Use this information to answer questions #18-21. 18. If the market price of oranges is $42 per crate, what is the short-run profit maximizing level of output for this firm? a. q =0 b. q = 80 c. q = 100 d. q = 140 e. q= 200 19. How much profit will Ollie's Oranges earn in the short-run if it is producing at the profit maximizing level of output that you identified in the previous problem? a. -$2,000 b. -$1800 c. $0 d. $500 e. $4,200

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

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