Refer to Figure 13-10. to answer the following questions. a. ...

[Chloeellawright]

Refer to Figure 13-10. to answer the following questions.
 
  a. What is the profit-maximizing output level?
  b. What is the profit-maximizing price?
  c. At the profit-maximizing output level, how much profit will be realized?
  d. Does this graph most likely represent the long run or the short run? Why?

Question 2

An entry barrier exists when firms in an industry charge the lowest price possible for their products.
 
  Indicate whether the statement is true or false

[BUTTHOL369]

Answer to Question 1

a. The profit-maximizing output level is 22.
b. The profit maximizing price is 16.
c. The profit is 88.
d. Since the firm is making a profit, this most likely represents the short run.

Answer to Question 2

FALSE