The marginal cost curve intersects the average variable cost curve

The marginal cost curve intersects the average variable cost curve To Purchase This Material Click below Link http://www.tutorialoutlet.com/all-miscellaneous/the-marginal-cost-curveintersects-the-average-variable-cost-curve-at-the-________-value-of-the-averagevariable-cost-curve/ FOR MORE CLASSES VISIT www.tutorialoutlet.com Marginal cost is ________ average variable cost when ________. equal to; average total cost is minimized less than; total cost is maximized greater than; average fixed cost is minimized equal to; average variable cost is minimized.

Question 7 The marginal cost curve intersects the average variable cost curve at the ________ value of the average variable cost curve. maximum minimum zero average Question 8 2 pts If marginal cost is between average variable cost and average total cost, then both average variable cost and average total cost are increasing. both average variable cost and average total cost are decreasing. average variable cost is increasing and average total cost is decreasing. average variable cost is decreasing and average total cost is increasing.

Flag this Question Question 9 2 pts

Diminishing marginal returns implies decreasing average variable costs. decreasing marginal costs. increasing marginal costs. decreasing average fixed costs.

Flag this Question Question 10 2 pts Total variable costs initially increase as output increases and then decrease. always decrease with output. always increase with output. initially decrease and then increase with output.

Flag this Question Question 11 2 pts If the average variable cost curve is above the marginal cost curve, then marginal costs must be decreasing. average variable costs must be increasing. marginal costs must be increasing. marginal costs can be either increasing or decreasing.

Flag this Question Question 12 2 pts In the short run, as output increases, the difference between average total cost and average variable cost decreases. the difference between total cost and average variable cost decreases. marginal cost eventually decreases.

All of the above are correct.

Flag this Question Question 13 2 pts In the short run, all firms that earn a loss will shut down. if current firms are earning a profit, new firms will enter the industry. firms act to minimize losses or maximize profits.

All of the above are correct.

Flag this Question Question 14 2 pts In the short run, firms earning a profit will want to ________ their profits while firms suffering losses will want to ________ their losses. maximize; maximize maximize; minimize minimize; maximize minimize; minimize Flag this Question Question 15 2 pts A firm suffering economic losses decides whether or not to produce in the short run on the basis of whether revenues cover variable costs. revenues from operating are sufficient to cover fixed costs. revenues from operating are sufficient to cover fixed plus variable costs.

Firms suffering economic losses will always shut down.

Flag this Question Question 16 2 pts Economic profit is

(P� ATC)q.

(P+ATC)q.

P(q-ATC).

Pq/ATC. Flag this Question Question 17 2 pts A profit-maximizing strategy becomes a loss minimization strategy when a firm in a perfectly competitive industry is producing where AVC < P < ATC. P > ATC. P = ATC. MR = MC < P. Flag this Question Question 18 2 pts A firm will shut down in the short run if it is suffering a loss. fixed costs exceed revenues. variable costs exceed revenues. total costs exceed revenues.

Flag this Question Question 19 2 pts A firm will choose to operate rather than shut down as long as price is greater than or equal to AFC. AFC is greater than AVC. price is greater than or equal to AVC. AVC is greater than MC.

Flag this Question Question 20 2 pts If revenues exceed ________, economic profit is ________. total cost; negative total cost; positive variable cost; negative variable cost; positive Flag this Question Question 21 2 pts The Speedy Typesetting Company, a perfectly competitive firm, is currently producing where P = MC and is earning a normal rate of return. The firm mainly employs minimum wage workers and the government just increased the minimum wage from $5.85 to $6.55 per hour. In the short run, this firm will most likely reduce the amount of output it produces because its cost curves have shifted up and to the left. continue to produce the same amount of output because only its fixed costs have increased. produce more units of output to increase revenue to cover the additional fixed costs. shut down because it will no longer be earning a normal profit.

Flag this Question Question 22 2 pts The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC. The current market price of an ice cream sandwich is $5.00. Taste Freeze sells 200 ice cream sandwiches. Its AVC is $8.00 and its AFC is $3.00. What should Taste Freeze do?

Continue to produce because price exceeds AFC Shut down and produce zero sandwiches because price is less than AVC Decrease production so that AVC will decrease Increase production so that AFC will decrease

Flag this Question Question 23 2 pts The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC. The current market price of an ice cream sandwich is $5.00. Taste Freeze sells 200 ice cream sandwiches. Its AVC is $4.00 and its AFC is $3.00. What should Taste Freeze do?

Continue to produce because price exceeds AVC Shut down and produce zero sandwiches because price is less than ATC Decrease production so that AVC will decrease Increase production so that AFC will decrease Flag this Question Question 24 2 pts If a firm shuts down in the short run, then its economic profits are zero. its losses are equal to its fixed costs. its operating profits are positive. it must be the case that its revenues from operating were less than its total costs.

Flag this Question Question 25 2 pts Refer to Figure A. In which of the following price ranges will the firm continue to operate but at a loss? $5-$6 $6-$7 $7-$8 $8-$9 Flag this Question Question 26 2 pts

Refer to Figure A. The firm's shut down point is at a price of $5 $6 $7 $8 Flag this Question Question 27 2 pts Refer to Figure A. Suppose demand for wheat is initially D2. If consumer incomes increase, then demand for wheat will shift to ________. This will ________ the equilibrium price of wheat and individual profit maximizing firms will produce ________ bushels of wheat.

D3; increase; 15 D1; increase; 10 D3; decrease; 7 D1; decrease; 0 Flag this Question Question 28 2 pts Refer to Figure A. Suppose demand for wheat is initially D2. If the price of rice (a substitute for wheat) falls, then demand for wheat will shift to ________. This will ________ the equilibrium price of wheat and individual profit maximizing firms will produce ________ bushels of wheat.

D3; increase; 15 D1; increase; 13 D3; decrease; 10 D1; decrease; 0 Flag this Question Question 29 2 pts

Refer to Figure A. If demand for wheat is D2, then a profit maximizing firm will produce ________ units and earn a profit of ________.

13; $0 7; $0 13; $91 15; $30 Flag this Question Question 30 2 pts Refer to Figure A. If demand for wheat is D3, then a profit maximizing firm will produce ________ units and earn ________.

15; positive profits 9; positive profits 12; negative profits 13; exactly a normal return Flag this Question Question 31 2 pts Refer to Figure A. If demand for wheat is D3, then in the long run the firm will shut down. the firm will exit the industry. new firms will enter the industry and the current firms will expand production.

None of the above is correct.

Flag this Question Question 32 2 pts Refer to Figure A. If demand for wheat is D1, then a profit maximizing firm will produce ________ units and earn ________.

0; negative profits 5; zero profits

10; negative profits 12; positive profits Flag this Question Question 33 2 pts Refer to Figure A. If demand for wheat is D1, then in the long run the firm will increase its price and output. the firm will exit the industry. new firms will enter the industry and the current firms will expand production. firms will increase their output so that their average fixed cost per unit falls.

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Do not enter in dollar signs or other symbols.

Do NOT put commas in your larger numbers. For example, suppose the question asks "What is 512 * 16?" Enter 8192 as an answer and do NOT type 8,192 Flag this Question Question 34 12 pts Suppose a monopolist faces the following demand curve: P = 420 â&#x20AC;&#x201C; 4Q Marginal cost of production is constant and equal to $36, and there are no fixed costs.

What is the monopolistâ&#x20AC;&#x2122;s profit-maximizing level of output? What price will the profit-maximizing monopolist charge? How much profit will the monopolist make if she maximizes her profit? What would be the value of consumer surplus in this monopoly market? How much consumer surplus would there be if this market was perfectly competitive? What is the value of the deadweight loss when the market is a monopoly?

Flag this Question Question 35 12 pts Suppose a monopolist faces the following demand curve:

P = 200 â&#x20AC;&#x201C; 6Q Marginal cost of production is constant and equal to $20, and there are no fixed costs.

What is the monopolistâ&#x20AC;&#x2122;s profit-maximizing level of output? What price will the profit-maximizing monopolist charge? How much profit will the monopolist make if she maximizes her profit? What would be the value of consumer surplus in this monopoly market? How much consumer surplus would there be if this market was perfectly competitive? What is the value of the deadweight loss when the market is a monopoly?