If a nondiscriminating imperfectly competitive firm is selling its 80th unit of output for $40, its marginal revenue Multiple Choice may be either greater or less than $40. will be less than $40. will be greater than $40. will also be $40.

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 $40.00 $40.00 4 $40.00 $90.00 9. $40.00 $130.00 8. $40.00 $190.00 10 $40.00 $260.00 Refer to Table Cost.EX2. For 8 units, the average total cost is about O $23.75 O $26.75 O $30.00 $28.75

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $30.00 $0.00 $30.00 $40.00 9. $30.00 $90.00 6. 12 $30.00 $130.00 $30.00 $190.00 15 $30.00 $260.00 Refer to Table Cost.EX2. For the 6 units, the average total cost is about O $5.00 O S20.00 O $16.67 O $15.00

Marginal revenue and marginal cost are same. This means that the firm is at minimum level of profit. True/False

Which of the following choices is not considered a "cost" of doing business?         Tasty Soup Company increased the production of chicken noodle soup, which forced the company to decrease the production of tomato soup.         Tasty Soup Company was forced to hire more workers to keep up with the demand for its products.         Tasty Soup Company earned more profits this year from a new product.         Tasty Soup Company introduced a new soup, which forced the company to discontinue the production of an older soup.

Table Cost.EX2.2: Data for a Competitive Firm Marginal Marginal Output Cost Revenue (Q) (MC) (MR) 10 $3.00 $4.00 11 $3.50 $4.00 12 $4.00 $4.00 13 $4.50 $4.00 14 $5.00 $4.00 15 $5.50 $4.00 16 $6.00 $4.00 Refer to Table Cost.EX2.2. If the firm wishes to maximize profit, it should produce units. O 10 O 12 O 11 6.

Marginal revenue is the Multiple Choice   change in product price associated with the sale of one more unit of output.   change in average revenue associated with the sale of one more unit of output.   difference between product price and average total cost.   change in total revenue associated with the sale of one more unit of output.

In the short run, a firm will produce a positive amount of output as long as _____ Group of answer choices price exceeds average variable cost. price is less than average variable cost. fixed cost exceeds total revenue. price exceeds marginal cost. average variable cost is less than average total cost.

Answer multiple choice