A firm produces 20 units of stuff using 5 units of labor. The value of the total

Question

A firm produces 20 units of stuff using 5 units of labor. The value of the total product is $60 and the total variable input cost is $20. What is the marginal revenue of the firm? (Points : 2.5)        $4
       $3
       $20
       $60
       can't be determined from the information provided Question 13.13. At the break-even point (Points : 2.5)        marginal cost is equal to average variable cost
       the rational range of production begins
       marginal revenue exceeds marginal cost
       the economic profits of the firm are zero
       none of the above Question 14.14. All costs of production per unit of output is (Points : 2.5)        total cost
       average variable cost
       average total cost
       total variable cost
       none of the above Question 15.15. Profit is maximized when (Points : 2.5)        total cost = total revenue
       marginal revenue = average total cost
       marginal revenue is maximized
       marginal cost = average total cost
       none of the above Question 16.16. If marginal revenue is above the minimum average total cost, then (Points : 2.5)        average fixed cost is zero
       the firm is earning economic profits
       the firm will minimize its losses
       the firm cannot maximize profit
       none of the above A firm produces 20 units of stuff using 5 units of labor. The value of the total product is $60 and the total variable input cost is $20. What is the marginal revenue of the firm? (Points : 2.5)        $4
       $3
       $20
       $60
       can't be determined from the information provided

Explanation / Answer

Ans) the correct option is

Ans13) the correct option is the economic profits of the firm are zero. At break even the firm has no profit and no loss

Ans14) the correct option is average total cost. Average total cost = total cost /output

Ans15) the correct option is none of the above. Profit is maximised at a point where marginal cost is equal to marginal revenue

Ans16) the correct option is the firm is earning economic profits because the marginal revenue exceeds the minimum average total cost

can't be determined from the information provided. Because change in total product is not given.

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