15 (3 Points)

In the above figure, if the price is $16, a profit-maximizing perfectly competitive firm

Question

15. (3 points) In the above figure, if the price is $16, a profit-maximizing perfectly competitive firm

will

A) produce 50 units.

B) produce 35 units.

C) produce 10 units.

D) choose not to produce.

16. (3 points) In the above figure, if the price is $12, a profit-maximizing perfectly competitive firm will have an economic profit

A) of less than $100 but more than $0.

B) of more than $100.

C) that is negative, that is, it will have an economic loss.

D) of zero, that is, it will break even with a normal profit.

17. (3 points) Using the above figure, of the prices below, which price enables a perfectly competitive firm to earn the maximum economic profit?

A) $4 per unit.

B) $10 per unit.

C) $12 per unit.

D) $16 per unit.

18. (3 points) In the above figure, below what minimum price will a perfectly competitive firm shut down rather than produce?

A) for any price less than $16 per unit

B) for any price less than $12 per unit

C) for any price less than $8 per unit

D) for any price less than $4 per unit

201
MC
18
ATC
AVC
Price and cost ( dollars per unit )
DO ON A Q
a
D
2
O
5 10 15 20 25 30 35 40 45 50
Quantity ( units per day )
Microeconomics