Question 19 Consider the table below which presents information about a competitive firm: FIRM D PRICE OUTPUT TOTAL REVENUE TOTAL COSTS TOTAL FIXED COSTS TOTAL VARIABLE COSTS AVERAGE TOTAL COSTS ? 700 $2,800 $2,975 ? $2,450 ? AVERAGE VARIABLE COSTS ? MARGINAL COST $4.00 Is this firm maximizing short run profits (minimizing short run losses)? a) No. ATC is greater than P. b) Yes. P MC. c) Yes. PAVC. 0 / 10 points

Use the figure below to answer the following question. Total revenue and total cost (dollars) 400 300 Z 200 100 Q 0 99 Quantity Figure 12.2.1 Refer to Figure 12.2.1, which shows a perfectly competitive firm's total revenue and total cost curves. Which one of the following statements is false? A) At an output of Q1 units a day, the firm makes zero economic profit. B) At an output less than Q1 units a day, the firm incurs an economic loss. OC) At an output of Q2 units a day, the firm incurs an economic loss. D) Economic profit is the vertical distance between the total revenue curve and the total cost curve. E) At an output greater than Q3 units a day, the firm incurs an economic loss. Main Content

Use the table below listing Average Total Cost (ATC)d and Marginal Cost (MC) for a firm in perfect competition to answer the following questions. Quantity ATC MC 1 17.5 15 14.3 12 3 10 10 4 16 20 22 31 In each scenario determine if the firm is profitable, breaks even, or incurs a loss. 1. If market price is $8, the firm 2. If market price is $14, the firm 3. If market price is $10, the firm

Use the values for a perfectly competitive firm below to answer the questions:  Price Quantity  Total Cost  Fixed Cost Variable Cost $10 2,000 $24,000 $8,000 $16,000 (A) Should this firm shut down in the short run? (B) Assume this firm's total costs do not change in the long run. Should this firm exit in the long run?  (C) Are your answers to (a) and (b) different? Explain in one to four sentences.

In the above figure, The cost curves of a typical perfectly competitive curve are show. What will price settle at in the long run?

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