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tlc_71111 tlc_71111
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4 years ago
Output (Q)Total Fixed CostTotal Variable Cost
0200
1205
2207
32010
42015
52021

Table 9.1


Table 9.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $3:

▸ the firm suffers a loss and is better off shutting down.

▸ the market price is greater than the minimum average variable cost.

▸ the firm suffers a loss but is better off producing the output level where MR = MC.

▸ none of the above
Textbook 
Microeconomics: Principles, Applications, and Tools

Microeconomics: Principles, Applications, and Tools


Edition: 8th
Authors:
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Do What Makes You Come Alive
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jzhu11jzhu11
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tlc_71111 Author
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#2
4 years ago
Thank you for answering so quickly
Do What Makes You Come Alive
Answer accepted by topic starter
wrote...
#3
4 years ago
Output (Q)Total Fixed CostTotal Variable Cost
0200
1205
2207
32010
42015
52021

Table 9.1


Table 9.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $5:

▸ the market price is lower than the average variable cost at the profit maximizing output level.

▸ the market price is lower than its marginal cost at the profit maximizing output level.

▸ the firm suffers a loss but is better off producing at the output where MR = MC.

▸ the firm suffers a loss and is better off shutting down.
Answer verified by a subject expert
vande746vande746
wrote...
#4
Posts: 383
Rep: 40 0
4 years ago
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