11. Suppose a firm's marginal cost of production is MC = 10 + 2q, where MC is total cost and q is the level of output. If the firm gets $40 for each unit it sells, variable costs are VC = 10q + q², and fixed costs are $200, it should produce ________ in the short run and profits are ________.

Select one:

1- 15; -$25

2- 40; $200

3- 20; $200

4- 15; $25

14. If MC = 10+2Q, AVC = 10+Q, and total fixed costs are $20, and the market price in a perfectly competitive industry is $14, then a firm should produce _______ units in the short run and ______ units in the long run.

Select one:

1- 0;2

2- 2;0

3- 38;38

4- 0;0

18. Marc sells his home grown organic tomatoes at a local farmer market. This has been a tough year for growing tomatoes, with much higher production costs than usual. Heirloom tomatoes sell for $6 a pound, and he sells about 30 pounds a day. Marc's total costs are $200 a day, and his fixed costs are $80. This implies that in the short run, Marc should ________, and in the long run, he should _________________ , if losses persist.

Select one:

1- continue to produce; stay in the industry

2- continue to produce; exit the industry

3- shut down; exit the industry

4- shut down; stay in the industry