11) Suppose the price of a can was $5.10. In this case, to maximize its profit, the firm illustrated in the figure above would
A) decrease its production and would make an economic profit.
B) not change its production and would make zero economic profit.
C) not change its production and would make an economic profit.
D) decrease its production and would incur an economic loss.
E) not change its production and would incur an economic loss.
12) The firm in the figure above has a total cost equal to ________.
A) $5.10 × 10
B) $8.00 × 10
C) ($5.10 – $8.00) × 10
D) ($8.00 – $5.10) × 10
E) None of the above answers is correct because more information is needed.
13) The firm in the figure above has a total revenue equal to ________.
A) $5.10 × 10
B) $8.00 × 10
C) ($5.10 – $8.00) × 10
D) ($8.00 – $5.10) × 10
E) None of the above answers is correct because more information is needed.
14) The firm in the figure above is ________ that is equal to ________.
A) making an economic profit; $8.00 × 10
B) making an economic profit; $5.10 × 10
C) incurring an economic loss; $5.10 × 10
D) incurring an economic loss; ($8.00 – $5.10) × 10
E) making an economic profit; ($8.00 – $5.10) × 10
The above figure shows some a firm’s cost curves and its marginal revenue curve.
15) Based on the figure above, what is the price of a can?
A) $0
B) $3.00 per can
C) $5.15 per can
D) None of the above prices is correct.
E) More information is needed to determine the price of a can.
16) Based on the figure above, if the firm produces 7 cans per day, the firm ________ maximizing its profit and is ________.
A) is; incurring an economic loss
B) is; making zero economic profit
C) is; making an economic profit
D) is not; incurring an economic loss
E) is not; making zero economic profit
17) Suppose the price of a can was $5.14. In this case, to maximize its profit the firm illustrated in the figure above would
A) increase its production and would make an economic profit.
B) not change its production and would make zero economic profit.
C) not change its production and would make an economic profit.
D) increase its production and would incur an economic loss.
E) not change its production and would incur an economic loss.
18) The price for the shutdown point is ________.
A) $5.14
B) between $3.01 and $5.13
C) $3.00
D) between $0 and $2.99
E) greater than $5.15
19) The firm in the figure above has a total cost equal to ________.
A) $5.14 × 7
B) $3.00 × 7
C) ($5.14 – $3.00) × 7
D) ($3.00 – $5.14) × 7
E) None of the above answers is correct because more information is needed.
20) The firm in the figure above has a total revenue equal to ________.
A) $5.14 × 7
B) $3.00 × 7
C) ($5.14 – $3.00) × 7
D) ($3.00 – $5.14) × 7
E) None of the above answers is correct because more information is needed.
21) The firm in the figure above is ________ that is equal to ________.
A) making an economic profit; $5.14 × 7
B) making an economic profit; $3.00 × 7
C) incurring an economic loss; $5.14 × 7
D) incurring an economic loss; ($5.14 – $3.00) × 7
E) making an economic profit; ($5.14 – $3.00) × 7
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