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Author Question: Consider the total cost and revenue curves shown below, for two perfectly competitive firms, Firm A ... (Read 27 times)

trevg

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on: Oct 12, 2022

Question 1

Consider a perfectly competitive firm producing and selling mousetraps at a market price of $5.00. Suppose this firm is producing 2000 mousetraps and average variable cost is $5.50. What level of economic profit is this firm earning?
◦ $0.50
◦ $1000
◦ -$1000
◦ $0
◦ There is insufficient information to answer to know.

Question 2

Consider the total cost and revenue curves shown below, for two perfectly competitive firms, Firm A and Firm B.



FIGURE 9-5

Refer to Figure 9-5. Given its total cost and revenue curves, Firm A should


◦ maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.
◦ build another plant to reap scale economies.
◦ continue production, as it is earning positive profits.
◦ produce zero output.
◦ maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by trevg on Oct 12, 2022

studyforce.com

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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trevg

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Reply 2 on: Oct 12, 2022
YES! Correct, THANKS for helping me on my review

bigsis44

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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