In the figure, if the firm increases its output from Q, to Q2, it will MC O A. reduce its marginal revenue. ATC B. increase its profit. OC. decrease its profit. O D. increase its marginal revenue. Price and costs (dollars)

In the figure, if the firm increases its output from Q, to Q2, it will MC O A. reduce its marginal revenue. ATC B. increase its profit. OC. decrease its profit. O D. increase its marginal revenue. Price and costs (dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In the figure, if the firm increases its output from Q, to Q2, it will
MC
O A. reduce its marginal revenue.
ATC
B. increase its profit.
OC. decrease its profit.
O D. increase its marginal revenue.
Q2
Q3
Quantity (per day)
Q1
Price and costs (dollars)

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Consider the total revenue (TR), total cost (TC), and total variable cost (TVC) curves shown at right. In the short run, this perfectly competitive firm OA. should exit because it is losing money. B. should shut down because its profit is zero. OC. should increase the price. OD. could shut down. OE. is breaking even. Price (5) Quantity TC TVC TR
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For a profit-maximizing price-taker firm, a reduction in the price of a good will cause the marginal revenue for that fiem and the quantity the firm produces to. to Oa Fall; Rise Ob Rise; Fall Oc. Rise; Rise Od. Fall, Fall
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Suppose a firm operating in a competitive market has the following cost curves: a. $9 b. $50 PRICE c. $30 O d. $15 20 18 16 14 10 878 6 st 4 2 12 MC Refer to Figure 14-2. If the market price is $10, what is the firm's short-run economic profit? ATC 3 4 5 6 7 8 9 10 QUANTITY
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