Question : 51) Refer to Table 9-2. At what price would a : 1384225

51) Refer to Table 9-2. At what price would a profit-maximizing firm earn zero economic profits?

A) $40

B) $70

C) $145

D) $220

E) $430

52) Refer to Table 9-2. If the market price were $71, this competitive firm wishing to maximize its profits would

A) produce 2 units of output.

B) produce 6 units of output.

C) produce 5 units of output.

D) not produce because P < minimum of ATC. E) not produce because P < TFC.                                             53) Refer to Table 9-3. If this firm were producing at an output level of 30 units, the AFC would be ________ and the AVC would be ________. A) $5; $6 B) $6; $5 C) $0.17; $0.20 D) $0.20; $0.17 E) $0.10; $0.30 54) Refer to Table 9-3. This firm would shut down in the short run if the market price of its output A) dropped below $0.15. B) dropped below $0.20. C) dropped below $0.30. D) dropped below $2.00. E) dropped below $3.00. 55) Refer to Table 9-3. As this firm increases output from 40 units to 50 units per period, its marginal cost rises to A) $0.10. B) $0.17. C) $0.375. D) $0.40. E) $0.50. 56) Refer to Table 9-3. Suppose the prevailing market price for this firm's product is $0.40. The profit-maximizing level of output for this firm is between A) 0 and 10 units. B) 10 and 20 units. C) 20 and 30 units. D) 30 and 40 units. E) 40 and 50 units. 57) Refer to Table 9-3. Suppose the prevailing market price for this firm's product is $0.42 and the firm produces its profit-maximizing level of output. At this price A) the firm is earning zero economic profits. B) the firm is earning positive economic profits. C) the firm is suffering economic losses and this firm will exit the industry. D) the firm should increase output. E) the firm should decrease output. 58) Refer to Table 9-3. Suppose the prevailing market price for this firm's product is $0.45. If the firm is producing 20 units of output per period, then its profit per unit is ________ and its total profit per period is ________. A) $9; $180 B) $0.05; $1.00 C) $6; $120 D) $0.01; $2 E) $0.40; $8 59) Refer to Table 9-3. Suppose the prevailing market price for this firm's product is $0.14 and the firm is currently producing 20 units of output. This competitive firm wishing to maximize profits would A) increase output because marginal revenue is greater than marginal cost. B) decrease output because marginal revenue is less than marginal cost. C) increase output because marginal revenue is less than marginal cost. D) decrease output because marginal revenue is greater than marginal cost. E) shut down because price is less than the minimum average variable cost. 60) A firm in a perfectly competitive industry will maximize profits by adjusting A) price until marginal revenue equals marginal cost. B) output until marginal cost equals marginal revenue. C) price until average revenue equals average total cost. D) output until average revenue equals short-run average total cost. E) average total cost until it equals price.