Question: Please answer using graph provided Use the graph below for the following three questions: $ Demand, marginal revenue, and costs 8 SMC 6 ATC AVC
Please answer using graph provided



Use the graph below for the following three questions: $ Demand, marginal revenue, and costs 8 SMC 6 ATC AVC NO 1 D Q 0 20 40 60 80 100 120 140 160 Quantity A graph showing demand (D) and marginal revenue (M R), average total cost (ATC), average variable cost (AVC), and short-run marginal cost (MC), with quantity (@) on the horizontal axis and demand, marginal revenue, and costs in dollars on the vertical axis. D and MR both have vertical intercepts of $8; MR has horizontal intercept at 80 units and D has horizontal intercept at 160 units. At 0 = 45, ATC = MR at $3.50; at this Q, MC = $1.50, AVC = $2, D = $6. At Q = 60, MR, AVC, and MC all intersect at $2; at this Q, ATC = $3, D = $5. At 0 = 75, ATC = MC at $3; at this Q, MR = $0.50, AVC = $2, D = $4. At Q = 80, MC = D at $4; at this Q, MR = $0, AVC = $2, ATC = $3. At Q = 100, ATC = D at $3; at this Q, AVC = $2.50. At Q = 105, AVC = D at $2.50; at this Q, ATC = $3.25. The profit-maximizing level of output is Select one: O a. 105 units. O b. 80 units. O c. 60 units. O d. 75 units.In the graph above, the firm will sell its output at a price of Select one: O a. $3. O b. $5. O C. $2. O d. $6. In the graph above, the firm will be Select one: O a. earning a loss but should stay open. O b. earning a loss and should shut down. O c. breaking even. O d. earning positive profit.In a monopolistically competitive market, Select one: O a. every firm's demand curve is equivalent to every other firm's demand curve. O b. it is prohibitively expensive for new firms to enter. O c. firms produce relatively close (but not perfect) substitutes. O d. one firm has a significant advantage in terms of market share compared to the other firms. A monopolistic competitor is similar to a monopolist in that Select one: O a. both can set price above marginal cost. O b. both are able to maximize their per-unit profit margin. O c. both earn positive economic profit in the long run. O d. both are able to enforce significant entry barriers against potential competitors. In the long run, monopolistically competitive firms will Select one: O a. set price equal to marginal cost and thus earn normal profit. O b. increase the amount of substitute products produced in the industry. O c. deter entry of new firms and thus restrict market supply. O d. break even
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