Question
31. Market demand is given as QD = 220 - 3P. Market supply is given as QS = 3P + 40. Each identical firm has
31. Market demand is given as QD = 220 - 3P. Market supply is given as QS = 3P + 40. Each identical firm has MC = 0.3Q and ATC = 0.2Q. What quantity of output will a typical firm produce?
| A. | 2 |
| B. | 6 |
| C. | 60 |
| D. | 100 |
32. Market demand is given as QD = 140 - 4P. Market supply is given as QS = 3P. Each identical firm has MC = 5Q and ATC = 2Q.What is a firm's profit?
| A. | $4 |
| B. | $32 |
| C. | $48 |
| D. | $80 |
33. Market demand is given as QD = 200 - P. Market supply is given as QS = 4P + 100. Each identical firm has MC = 4Q and ATC = 2Q. What is a firm's average total cost?
| A. | 5 |
| B. | 10 |
| C. | 15 |
| D. | 20 |
34. Market demand is given as QD = 300 - 5P. Market supply is given as QS = 5P. Each identical firm has MC = 6Q and ATC = 4Q. What quantity of output will a typical firm produce?
| A. | 5 |
| B. | 10 |
| C. | 30 |
| D. | 60 |
Question 35
Scenario 14-1 Assume a certain firm is producing 1000 units of output (so Q = 1000). At Q = 1000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
Refer to Scenario 14-1. At Q = 999, what is the firm's profit?
| A. | $993 |
| B. | $997 |
| C. | $1003 |
| D. | $1007 |
36. Market demand is given as QD = 60 - P. Market supply is given as QS = 3P. Each identical firm has MC = 3Q and ATC = 1.5Q. What is a firm's average total cost?
| A. | $1.50 |
| B. | $5.00 |
| C. | $7.50 |
| D. | $15.00 |
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Modern Principles Microeconomics
Authors: Tyler Cowen, Alex Tabarrok
4th Edition
1319098762, 978-1319098766
