Assignment 8

Assignment 8 - ES 102-03 Principles of Economics Micro...

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ES 102-03: Principles of Economics – Micro Stetson University Assignment 8 Spring 2009 1. Marginal revenue for a purely competitive firm: A. is greater than price. B. is less than price. C. is equal to price. D. may be either greater or less than price. 2. Refer to the above short-run data. Total fixed cost for this firm is: A. about $67. B. $300. C. $200. D. $100. 3. The MR = MC rule applies: A. to firms in all types of industries. B. only when the firm is a "price taker." C. only to monopolies. D. only to purely competitive firms. 4. Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation: A. should close down in the short run. B. is maximizing its profits. C. is realizing a loss of $60. D. is realizing an economic profit of $40. 5. A firm finds that at its MR = MC output, its TC = $1,000, TVC = $800, TFC = $200, and total revenue
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Assignment 8 - ES 102-03 Principles of Economics Micro...

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