The graph below represents the cost structure of a firm in a perfectly competitive market. Price | ATC MC AVC Quantity When price rises from P3 to...
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Question

1. When a firm in a competitive market has a marginal revenue of Rp25,000 and receives

Rp5,000,000 in total revenue, then quantity of the unit sold and the average revenue per unit

are ....

a. 100 units and Rp25,000

b. 100 units and Rp50,000

c. 200 units and Rp25,000

d. 200 units and Rp50,000

qe.png

4. A profit-maximizing monopolist will produce the level of output at which ....

a. average revenue is equal to average total cost and price is greater than marginal cost

b. average revenue is equal to marginal cost and price is greater than marginal cost

c. marginal revenue is equal to marginal cost and price is equal to marginal cost

d. marginal revenue is equal to marginal cost and price is greater than marginal cost

qe1.png

Image transcriptions

2. The graph below represents the cost structure of a firm in a perfectly competitive market. Price | ATC MC AVC Quantity When price rises from P3 to P4, the firm finds that .... a. fixed costs are lower at a production level of Q. b. it can earn a positive economic profit by increasing production to Q. c. profit is maximized at the production level of Q, d. average revenue exceeds marginal revenue at the production level of Q. 3. This table provides information on a firm's output, marginal revenue, and marginal cost. If the firm is currently producing 22 units, what would you advise them to do in order to maximize its profit? Marginal Marginal Quantity Cost (Rp) Revenue (Rp) 19 40.000 80.000 20 50.000 80,000 21 60.000 80,000 22 70.000 80,000 23 80.000 80,000 24 90.000 80,000 25 100.000 80,000 a. Decrease the quantity produced to 21 units. b. Continue production at 22 units. c. Increase the quantity produced to 23 units. d. Increase the quantity produced to 25 units.

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