5. The short-run total cost function for a perfectly competitive firm is SRTC = 500 + 3q − 5q² + q³.Suppose that, at its short-run profit maximizing quantity, each firm is making a loss but choosesto stay open. Which of the following is/are necessarily true?a. MR = 3-10q + 3q²b. AR < 500/q+3-5q + q²c. P>3-5q+q²d. Both A and B are true.e. All of the above are true.

Thus, we can only draw the conclusion that statement (b) (AR < 500/q + 3 - 5q + q^2) is probably…

Answered: 5. The short-run total cost function…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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4. The market for sugar consists of 3,500 identical, perfectly competitive firms, each with the following short-run total cost function: SRTC =1,500 + 35q². The market demand curve for sugar is Q= 11,200 -30P. What is each firm's maximum short-run profit? a. $0 b. $280 c. -$1,080 d. -$1,360 e. -$1,500
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7. There are 1,000 firms in a perfectly competitive market. Each faces the same short-run total cost function: SRTC = 50 + 10q + 5q². What is the minimum price at which a firm will stay open in the short run? a. P= $0 b. P = $5 c. P= $10 d. P = $20 e. P = $50
2 Refer to the table below, which presents a cost schedule for a perfectly competitive firm. Quantity 10 11 12 13 14 15 16 FI ( If the price that the firm charges for its output is $9, how many units will this firm produce? 11 2 16 S 14 0 W F2 X = 3 20, E D F3 JAN 5 $ 4 888 R F F4 % 5 30 T F5 G ^ 6 F6 Y Total cost ($) 13 H 25 36 46 MacBook Air & 7 55 63 70 A F7 U tv NA * 8 J ➤ll FB ➤➤ ( 9 D 1 F9 O -0 O W F10 K L Aa P 4) zoom F11 + { [ Next SA ) F12 11 ( M htm delete
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