# Refer to figure 13 4 what is the area that represents

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Chapter 26 / Exercise 2
Bennett/Siy Expert Verified
10) Refer to Figure 13-4.What is the area that represents the total variable cost of production?A) 0P0aQaB) 0P1bQa
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Chapter 26 / Exercise 2
Bennett/Siy Expert Verified
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B11) Refer to Figure 13-4.What is the area that represents the total fixed cost of production?
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C12) Refer to Figure 13-4.What is the area that represents the loss made by the firm?
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D13) Refer to Figure 13-4.Should the firm represented in the diagram continue to stay in businessdespite its losses?
B14) In the short run, a profit-maximizing firm's decision to produce should be guided by whether A) it makes a profit.B) its marginal profit is maximized.C) its total revenue exceeds its fixed cost.D) its total revenue covers its variable cost.Answer:
D16) If price exceeds average variable cost but is less than average total cost, a firm
B
Table 13-3QuantityPrice(dollars)Total Revenue(dollars)Total VariableCost (dollars)Total Cost(dollars)0\$21\$0\$0\$50120201666219383181318544595417685910951680751256159093143714981121628131041401909121081802301011110230280Table 13-3 shows the demand and cost schedules for a monopolistically competitive firm.17) Refer to Table 13-3. What are the profit-maximizing/loss-minimizing output level and price?
C18) Refer to Table 13-3. What is the amount of the firm's loss at its optimal output level?
B19) Refer to Table 13-3. What is its average variable cost of production at its optimal output level? A) \$0 (because its optimal output =0)B) \$15C) \$14.75 D) \$29Answer:
C20) Refer to Table 13-3. What is the best course of action for the firm in the short run?
B
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