17 assume a certain firm in a competitive market is

17 assume a certain firm in a competitive market is

Assignment Help Microeconomics

Reference no: EM13377345

17. Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.

To maximize its profit, the firm should

a. increase its output.
b. continue to produce 1,000 units.
c. decrease its output but continue to produce.
d. shut down.

Reference no: EM13377345

Questions Cloud

Why does a firm in a competitive industry charge the market : why does a firm in a competitive industry charge the market price?a. if a firm charges less than the market price it

Mrs smith operates a business in a competitive market the : mrs. smith operates a business in a competitive market. the current market price is 7.50. at her profit-maximizing

17 assume a certain firm in a competitive market is : 17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal

17 assume a certain firm in a competitive market is : 17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal

17 assume a certain firm in a competitive market is : 17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal

17 assume a certain firm in a competitive market is : 17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal

Suppose the economy were very strong and unemployment very : suppose the economy were very strong and unemployment very low. wages after inflation rise for most americans by about

There are 20 million households in country x and 4 million : there are 20 million households in country x and 4 million of them are below the poverty line. what is the poverty

12 mrs smith is operating a firm in a competitive market : 12. mrs. smith is operating a firm in a competitive market. the market price is 6.50. at her profit-maximizing level of

Reviews

Write a Review

Required(*) Message

Microeconomics Questions & Answers

The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?

Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: - Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

Fixed cost and vairiable cost

Questions: : Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? Explain your choice.

Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: - Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.)

Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve, Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation; Why are public goods not produced in sufficient quantities by private markets? Which of the following are examples of public goods (or services)? Delete the incorrec..

Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd