CoronaQuiz 8

The profit-maximizing price is ________ and will generate total economic profit of ________.

• P2; EF

• P3; the rectangle P2P3EF

• P3; the rectangle P1P2FG

• P3; the rectangle P1P3EG

The figure shows cost curves for a firm operating in a perfectly competitive market. M is the ________ curve.

• ATC

• MR

• MC

• AVC

Producing at point N would:

• result in MR = MC.

• result in positive economic profits.

• never be profit-maximizing, since at this output MR < 0 and MC > 0.

• result in the firm breaking even.

At the profit-maximizing output, total cost is:

• P20Q1F

• P2P3EF

• P10Q1G

• P30Q1E

In order to obtain maximum profits, the monopoly should produce the output determined by point ________.

• F

• G

• H

• K

The figure shows cost curves for a firm operating in a perfectly competitive market. N is the ________ curve.

• ATC

• MR

• MC

• AVC

The figure shows cost curves for a firm operating in a perfectly competitive market. If the market price is P3, the firm will produce quantity ________ and ________ in the short run.

• q2; incur a loss

• q1; break even

• q4; incur a loss

• q1; incur a loss

The figure shows cost curves for a firm operating in a perfectly competitive market. If the market price is P4, the firm will produce quantity ________ and ________ in the short run.

• q2; incur a loss

• q1; break even

• q4; break even

• q3; make a profit

The figure shows cost curves for a firm operating in a perfectly competitive market. O is the ________ curve.

• ATC

• MR

• MC

• AVC

The figure shows cost curves for a firm operating in a perfectly competitive market. Curve M must cross Curves N and O:

• at their maximum points.

• to the left of their minimum points.

• to the right of their minimum points.

• at their minimum points.