QUESTION 3 At the shut-down point, the: rm is s making an accounting prot. rm is indifferent to whether it operates or shuts down. industry will attract new entrants. rm is making a normal prot. QUESTION 4 Costs for Toy-Making Firm Q ATC AVC AFC MC 0 8 93.75 31.25 62.50 31.25 17 58.82 29.41 29.41 27.78 27 46.30 27.78 18.52 25.00 40 37.50 25.00 12.50 19.23 54 32.41 23.15 9.26 17.86 66 30.30 22.73 7.58 20.83 76 29.61 23.03 6.58 25.00 84 29.76 23.81 5.95 31.25 91 30.22 24.73 5.49 35.71 96 31.25 26.04 5.21 50.00 Reference: Ref 8-7 (Table) If the toy-making firm in the table faces a market price of $25 in the short run, it will: O minimize its losses by producing 27 toys. O maximize its profits by producing 96 toys. minimize its losses by producing 76 toys. O minimize its losses by shutting down.QUESTION 7 If MC = MR, then a perfectly competitive firm is: making a normal rate of prot. making economic prots. making economic losses. maximizing prot. QUESTION 8 Normal prots are equal to: negative economic prots. marginal revenue. zero economic prots. marginal cost