Refer to figure 13 4 what is the area that represents

This preview shows page 6 - 9 out of 13 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Blueprint Reading for Welders
The document you are viewing contains questions related to this textbook.
Chapter 26 / Exercise 2
Blueprint Reading for Welders
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
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Blueprint Reading for Welders
The document you are viewing contains questions related to this textbook.
Chapter 26 / Exercise 2
Blueprint Reading for Welders
Bennett/Siy
Expert Verified
C) P0abPD) P1bdPAnswer:
1
3
B11) Refer to Figure 13-4.What is the area that represents the total fixed cost of production?
3
3
C12) Refer to Figure 13-4.What is the area that represents the loss made by the firm?
3
2
2
3
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

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture