17 assume a certain firm in a competitive market is

Assignment Help Microeconomics
Reference no: EM13377347

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: EM13377347

Questions Cloud

If a competitive firm is currently producing a level of : if a competitive firm is currently producing a level of output at which profit is not maximized then it must be true
Bill operates a boat rental business in a competitive : bill operates a boat rental business in a competitive industry. he owns 10 boats and pays 1000 per month on the loan
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

Reviews

Write a Review

Microeconomics Questions & Answers

  Provide alternative to cracking down as means of increasing

Believing that the new workers were either lazy or inefficiently supervised (or possibly both), the CEO instructed the shop foreman to "crack down" on the new workers to bring their productivity levels up. Provide an alternative to cracking down as..

  Massive cigarette advertising on television was commonplace

massive cigarette advertising on television was commonplace until laws prohibiting such advertising were introduced in

  People haveresorted to carry out exchange

In countries where the monetary system has broken dow, what are some of the alternatives to which people haveresorted to carry out exchange?

  Engel curves always slope upward

Suppose that an individual allocates his or her entire budget between two goods, food and clothing. Can both goods be inferior? Explain.

  Compute the demand for money for interest rate

Suppose the real money supply increase to $2,780. Given your answers to part a, find the new combinations to graph the new LM curve, given that the real money supply now equals $2,780. Label this curve LM1.

  What is the total consumer surplus at equilibrium point

Show the relationship between EV, CV, and consumer surplus using compensated and uncompensated demand curves. If you your income is $ 1million,you spend $100 on good 1, and income elasticity was 0.02, does it matter whether you use EV, CV, or consu..

  How much of good x and how much of good y will the consumer

Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = Min (2X,Y). Also, suppose the consumer has $300 to spend and the price of Good X is PX = $3 and the price of Good Y is PY = $1.

  Would you dispute the advisability of such a procedure

All our projects are discounted at the same interest rate,” says the treasurer of a large company. Would you dispute the advisability of such a procedure?

  In the keynesian cross assume that the consumption function

. in the keynesian cross assume that the consumption function is given byc2000.75y-tplanned investment is 100

  In markets characterized by oligopolya expectations on how

in markets characterized by oligopolya. expectations on how rivals will respond are important considerations when a

  Budget lines and indifference curves

Using budget lines and indifference curves, prove to your colleague that he is wrong - decompose the change in price into two components: pure substitution effect, and income effect.

  Show the effect on professor smith budget constraint

Assuming that Professor Smith spends the $100 each month at either Alice’s or the club, sketch his budget constraint. Show actual numbers on the axes.

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!

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