Question 25. 25. For a certain firm, the 100th unit of output that the firm prod

ID: 1100536 • Letter: Q

Question

Question 25.25. For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. It follows that the (Points : 5)

       production of the 100th unit of output increases the firm's profit by $3.
       production of the 100th unit of output increases the firm's average total cost by $7.
       firm's profit-maximizing level of output is less than 100 units.
       production of the 99th unit of output must increase the firm

Question 25.25. For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. It follows that the (Points : 5)

Explanation / Answer

Question 25.25. For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. It follows that the...

Answer- production of the 100th unit of output increases the firm's profit by $3.

Question 26.26. What is the marginal cost of the 8th unit?

Answer- $ 120

Question 27.27. What is the lowest price at which this firm might choose to operate?

Answer- $3

Question 28.28. When total revenue is less than variable costs, a firm in a competitive market will...

Answer- shut down

Question 29.29. If marginal cost exceeds marginal revenue, the firm.......

Answer- should reduce its average fixed cost in order to lower its marginal cost.

Question 30.30. Scenario 14-1
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.

Refer to Scenario 14-1. At Q = 999, the firm's profits equal

Answer- $ 4990

Question 31.31. Table 14-14

Refer to Table 14-14. Suppose that due to a decrease in the market demand for bread the market price of bread drops to $2.75 per loaf. At this new price, what is Bob