33. This firm's supply curve is (a) the average cost curve above the marginal cost. (b) the marginal cost curve above average variable cost. (c) the marginal cost curve above the average cost. (d) indeterminate. O(e) perfectly elastic.

If a firm's profit margin is negative,   this means that:   a. The average cost is above the price.   b. The price is below the marginal cost.   c. The firm is making losses for all levels     d. All options are correct.

PROBLEM (4) The short run market supply for shirts is QS = 50P – 1000 and the market demand isQD = 2800 – 50P Let a typical firm operating in a perfectly competitive industry has short-run total cost and marginal cost curves: TC(q) = 100 + 20q + q2 and MC(q) = 20 + 2q (a) Determine the short run market equilibrium price and quantity for this type of shirt.(b) Determine how much the typical firm will produce at the equilibrium price you found in (a).(c) If all firms had the same cost structure, how many firms should be operating in this industry at the moment? (d) Calculate the profit or loss of each firm at the short-run market equilibrium. If they are making losses, why are they still producing in the short run? In the long run, will there be entry into the market or exit from it?(e) What would the price be in the long run equilibrium, assuming constant cost industry?(f) In the long run equilibrium, how many shirts would each firm produce? What would be a firm’s net profit?(g) How…

The competitive firm maximizes its profit by operating at the point where _____ and price is greater than average variable cost. a. average cost is at a minimum b. total revenue is at a maximum c. profit per unit is at a maximum d. marginal cost equals price