25. Market demand is given as QD = 75 - 2P. Market supply is given as QS = 2P + 15. Each identical firm has MC = 3Q and ATC = 2Q. What is a firm's profit?

A.	$0.00
B.	$18.75
C.	$25.00
D.	$50.00

25. What happens if a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue?

A.	Average revenue exceeds marginal cost.
B.	The firm is earning a positive profit.
C.	A one-unit decrease in output would increase the firm's profit.
D.	The firm must lower marginal costs.

27. Market demand is given as QD = 110 - 2P. Market supply is given as QS = 3P + 10. Each identical firm has MC = 10Q and ATC = 5Q. What is a firm's profit?

A.	$15
B.	$20
C.	$30
D.	$40

28. Market demand is given as QD = 120 - 2P. Market supply is given as QS = 2P. Each identical firm has MC = 6Q and ATC = 3Q. What is a firm's average total cost?

A.	$2
B.	$3
C.	$8
D.	$15

29. Market demand is given as QD = 40 - P. Market supply is given as QS = 3P. Each identical firm has MC = 5Q and ATC = 3Q. What quantity of output will a typical firm produce?

A.	2
B.	4
C.	5
D.	10

Question 30

Table 13-4 At Beth's Bakery, Beth pays all her workers the same wage and labour is her only variable cost. Consider the following information about bread production at Beth's Bakery:

Worker	Marginal Product
1	5
2	9
3	12
4	14
5	10
6	8
7	6

From the information in Table 13-4, what can we conclude about Beth's marginal cost?

A.	It increases as output increases from 0 to 14 but declines after that.
B.	It declines as output increases from 0 to 14 but increases after that.
C.	It declines as output increases from 0 to 40 but increases after that.
D.	It continually increases as output rises.