Question : 101) Refer to Table 9-1. Suppose this firm producing 1250 : 1384230

101) Refer to Table 9-1. Suppose this firm is producing 1250 mousetraps and its average total cost is $4 per unit. The firm will be

A) suffering losses of $5000.

B) earning profits of $5000.

C) breaking even.

D) earning profits of $1250.

E) suffering losses of $1250.

102) Refer to Table 9-1.  Suppose this firm is producing 1500 mousetraps and its average total cost is $5.10 per unit.  The firm will be

A) suffering losses of $7650.

B) earning profits of $7650.

C) breaking even.

D) earning profits of $150.

E) suffering losses of $150.

103) Refer to Figure 9-4. Given its total cost and revenue curves, Firm A should

A) build another plant to reap scale economies.

B) shut down.

C) continue production, as it is earning positive profits.

D) maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.

E) maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.

104) Refer to Figure 9-4. Given its total cost and revenue curves, Firm B should

A) exit the industry.

B) shut down temporarily.

C) maximize its profits by producing that level of output such that the slope of the TC curve is equal to the slope of the TR curve.

D) maximize its profits by producing that level of output such that the slope of the TVC curve is equal to the slope of the TR curve.

E) produce the level of output where the TC curve intersects the TR curve.

105) Refer to Figure 9-4. If both Firms A and B are producing a level of output such that the slope of the TC curve is equal to the slope of the TR curve,

A) then MC = MR and the firm is maximizing profit (or minimizing losses).

B) then the ATC is at a minimum and the firm is maximizing profits.

C) then both firms are suffering losses because the distance between TR and TC is the smallest.

D) then both firms are earning positive economic profits because the distance between TR and TC is the greatest.

E) then MC = MR but the firm may not be maximizing its profits.

106) The short-run supply curve for a perfectly competitive firm is

A) its entire marginal-cost curve.

B) its rising portion of the average-variable-cost curve.

C) its average-revenue curve.

D) its marginal-cost curve above the average-variable-cost curve.

E) the industry supply curve.

107) Consider a firm in a perfectly competitive industry. The shut-down point is the price at which the firm can just cover its

A) marginal costs.

B) non-economic costs.

C) fixed costs.

D) unstated costs.

E) variable costs.

108) The supply curve for a perfectly competitive industry is the horizontal summation of the individual firms’

A) MC curves above ATC.

B) MC curves above AVC.

C) AVC curves above MC.

D) MC curves above AFC.

E) short-run average cost curves.

109) Refer to Figure 9-2. The short-run supply curve for this perfectly competitive firm is its

A) ATC curve at and above $3.

B) AVC curve at and above $1.50.

C) entire marginal cost curve.

D) marginal cost curve at and above $3.

E) marginal cost curve at and above $1.50.

110) Refer to Figure 9-2. The short-run supply curve for the industry in which this firm operates is

A) the MC curve at or above a price of $1.50.

B) the AVC curve at or above a price of $1.50.

C) the entire MC curve.

D) the MC curve at or above a price of $3.

E) not determinable from the information provided.