19. Refer to Exhibit 23-3. What is the maximum profit? $65 . b. $59 $20 C....

Transcribed Image Text:

19. Refer to Exhibit 23-3. What is the maximum profit? $65 а. b. $59 $20 C. d. $376 Consider the following data: equilibrium price $9, quantity of output produced 1,000 units, average total cost $7, and average variable cost $5. Given this, total revenue is total cost is 20. and total fixed cost is $6,000; $8,000; $1,000 a. b. $9,000; $7,000; $5,000 $10,000; $8,000; $3,000 C. $9,000; $7,000; $2,000 d. none of the above e. 21 In the short-run, if P < ATC, a perfectly competitive firm should increase production to the output level at which P ATC а. continue producing at a loss. b. shut down. C. continue producing at a profit. d. There is not enough information to answer the question.. е. Consider the following data: equilibrium price $10, quantity of output produced 100 units, average total cost $13, and average variable cost $7. What will the firm do and why? 22. Shut down in the short run, because it is taking a loss of $200. a. Continue to produce in the short run, because price is greater than average variable b. cost. Shut down in the short run, because average variable cost is less than average total cos- Continue to produce in the short run, because firms are always stuck with having to d. produce in the short run. 19. Refer to Exhibit 23-3. What is the maximum profit? $65 а. b. $59 $20 C. d. $376 Consider the following data: equilibrium price $9, quantity of output produced 1,000 units, average total cost $7, and average variable cost $5. Given this, total revenue is total cost is 20. and total fixed cost is $6,000; $8,000; $1,000 a. b. $9,000; $7,000; $5,000 $10,000; $8,000; $3,000 C. $9,000; $7,000; $2,000 d. none of the above e. 21 In the short-run, if P < ATC, a perfectly competitive firm should increase production to the output level at which P ATC а. continue producing at a loss. b. shut down. C. continue producing at a profit. d. There is not enough information to answer the question.. е. Consider the following data: equilibrium price $10, quantity of output produced 100 units, average total cost $13, and average variable cost $7. What will the firm do and why? 22. Shut down in the short run, because it is taking a loss of $200. a. Continue to produce in the short run, because price is greater than average variable b. cost. Shut down in the short run, because average variable cost is less than average total cos- Continue to produce in the short run, because firms are always stuck with having to d. produce in the short run.