I was very unprepared for these questions. explanations would be very helpful! t

Question

I was very unprepared for these questions. explanations would be very helpful! thank you!!

Question 1

Question options:

$9,000

$24,000

$30

$20

$40

incorrect

A monopoly is producing a level of output at which price is $80, marginal revenue is $40, average total cost is $100, marginal cost is $40, and average fixed cost is $10. In order to maximize profit, the firm should

Question options:

produce more.

keep output the same.

produce less.

shut down.

incorrect

Question options:

-$180

-$80

$60

x $120

none of the above

incorrect

Question options:

8,000 units

10,000 units

12,000 units

16,000 units

0 units, the firm shuts down

Question 10

Question options:

Total revenue will increase $13.50.

Total revenue will increase $11.00.

Total revenue will increase $9.00.

Total revenue will increase $6.00.

none of the above.

I was very unprepared for these questions. explanations would be very helpful! thank you!!

Question 1

Explanation / Answer

1.

Correct Answer:

$30

Working Note:

Marginal revenue = (40*600 – 50*300)/(600-300) = $30

2.

Correct Answer:

Shut Down

Explanation:

Average variable cost = Average total cost – Average fixed cost = 100 – 10 = $90

Since, price is $80 and it is less than the average variable cost. Thus, firm should shut down in this scenario.

6.

Correct answer:

-$80

Explanation:

Firm will produce up to the level when MR = MC

At the above condition, output = 40

ATC= $14

Price = $12

Thus,

Profit = 40*12 – 40*14 = -$80

Pl. repost other unanswered questions for their proper answers.

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