Question 6 6 Not yet answered Points out of P Rlag question The typical average
ID: 1162221 • Letter: Q
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Question 6 6 Not yet answered Points out of P Rlag question The typical average cost curve in a competitive market is: Select one: a. an upward-sloping straight line because fixed costs are constant, and variable costs are increasing with the level of output. O b. Ushaped because the firm's fixed costs are first spread over greater quantities, but then increasingly greater quantities will create production capacity constraints. O c. U-shaped because increasing quantities of output cause a decrease in fixed costs but an offsetting increase in variable costs. O d. downward-sloping until fixed costs are eliminated and then it becomes a horizontal line. Question 7 Not yet answered Points out of 1 P Flag question If price is less than average cost, Select one: O a.marginal cost must be high. O b. there is no profit-maximizing rate of output O c. the firm's maximum profit is a loss O d. the firm may still make profits as long as marginal cost is low Question 8 Notyet answered r Flag question Points out of1 Which kind of industry would have a downward-sloping long-run supply curve? Select one O a. no industry O b, a constant cost industry O c. an increasing cost industry O d. a decreasing cost industryExplanation / Answer
ANSWER : 6) C / U - shaped becaused increasing quantity of output cause a decrease in fixed costs but an offsetting incrase in variable costs .
7 ) if price less than AC , (C) the firm maximum profit is a loss . When price is less than average cost that means revenue earn by company is less than total cost , so firm make losses .
8 ) d) a decreasing cost industry . In a decreasing cost industry, costs decrease as output is increased either by the expansion of the existing firms or by the entry of new firms.
10 ) seventh unit of output total profit , (c ) $ 160 . Total revenue is $630 - Total cost $ 470 = profit $ 160 .
N.B = you don't provide any figure to provide the answer of question 9 , so put figure on comment , i will provide your answer .
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