After selling 1000 three ring binders Tony DiFulvio realizes that the marginal

After selling 1000 three ring binders tony difulvio

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37) After selling 1,000 three-ring binders Tony DiFulvio realizes that the marginal revenue fromselling the last binder was less than the marginal cost. From this we can conclude thatA) Tonyʹs profit fell after selling his 1,000th three-ring binder.B) Tonyʹs business earns a short-run economic profit.C) Tonyʹs profit would be greater if he sold an additional three-ring binder.D) Tony should shut down his business temporarily.Answer: A37)Diff: 1Page Ref: 435-436/435-436Topic: Short-Run Profit MaximizationLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Reflective ThinkingTable 13-1Quantity SoldPriceTotal RevenueMarginalRevenueTotalCostMarginalCostProfit0$10$0-----$2------$21998281613372117462420552522642426Table 13-1 lists estimated revenues and costs (per week) for plastic vials (100 vials per box) for the Victoria BiologicalSupplies Company. Victoria sells plastic vials to university and private research laboratories.38)Refer to Table 13-1.Based on the data in the table, which of the following statements is true?38)Diff: 2Page Ref: 435-436/435-436Topic: Short-Run Profit MaximizationLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic Skills39)Refer to Table 13-1.Victoriaʹs profit-maximizing quantity sold (Q) and price (P) are:39)Diff: 2Page Ref: 435-436/435-436Topic: Short-Run Profit MaximizationLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic Skills11
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