pcap1 - Thus , quantity produced will never be less than...

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Additional Problem 1 : Pure Competition Given the following cost functions and revenue lines for a purely competitive firm choose correct answers to the following questions below. a) This purely competitive firm is operating in the __________ (short run, long run). b) The firm will break even when the price is $__________. Under this condition, quantity will be __________. Total revenue will be $__________ and total cost will be $__________. $ 18 16 12 9 6 5 4 16 25 30 38 45 52 55 Q 0 MC ATC AVC
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c) If price is $18, the firm will produce __________. This position yields a __________ (profit, loss, break even) for the firm of __________ ($333, > $330, < $330). d) The optimal level of output is zero when price falls below $__________.
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Unformatted text preview: Thus , quantity produced will never be less than __________. e) If price is $9, the firm will realize a __________ (profit, loss, break even) of __________ (&lt; $114, $114, &gt;$114). As a result the firm will __________ (continue production, shutdown, break even). If the firm continues production, output will be __________. f) Average total cost is at minimum when price is $__________. Average variable cost is at a minimum when price is __________. The slope of total cost is at its flattest point when price is $__________ g) At the shutdown level of output and price, we know that total variable cost is $__________. At this same position, total fixed cost is __________ (&gt; $180, $180, &lt;$180)....
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pcap1 - Thus , quantity produced will never be less than...

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