Microcconomics 2620 Fall 2017 Third Exam Date Bonus Questions ONI.Y to be answer
ID: 1116975 • Letter: M
Question
Microcconomics 2620 Fall 2017 Third Exam Date Bonus Questions ONI.Y to be answered after Answer Completion ot the Virst 25 Questions rabie 12- Apples Market Price Revenue Marginal Revenue Rev TRI 250 300) Table 12-1 lists the v a perfectly competitive market 26) Refer to Table 12-1 What is Margies total revenue if she sells 230 pounds of apples? A) $250 B) 5500 C) $750 D) There is not enough information in the table to determine Mar gie's total tevenue 27) Refer to Table 12.1. How many pounds of apples sbould Margie sell to imaximize her peofit A) 300 pounds B) 00 pounds C) This cannot be determined without knowing Margie's total or marginal production costs D) This can be determined only when all of the values for market price, total revenue, average marginal revenue are given. 28) If a firm shuts down in the short run it will A) break even. B) declare bankruptcy C) suffer a loss equal to its variable costs. D) suffer a loss equal to its fixed costs.Explanation / Answer
26)
since market is perfectly competitive so price is constant for all quantities
TR = PQ
at Q = 250
TR = 250(3)
= 750
Option c is correct
27)
Profit maximisation condition for perfectly competitive firm
P = MC
since we do not have any information about MC and TC of the firm so we cannot determined profit maximising output of firm
C is correct option
28)
Firm shutdown if P < AVC so firm suffer a loss equal to variable cost
c is correct