126. Refer to the above table. At the equilibrium price, each of the 100 firms i

Question

126. Refer to the above table. At the equilibrium price, each of the 100 firms in this industry will produce:
A. 600,000 units of output.
B. 60,000 units of output.
C. 6,000 units of output.
D. 600 units of output.

127. Refer to the above table. For each of the 100 firms in this industry, marginal revenue and total revenue will be:
A. $4 and $400, respectively.
B. $3 and $30,000, respectively.
C. $4 and $20,000, respectively.
D. $3 and $18,000, respectively.

128. Refer to the above table. If each of the 100 firms in the industry is maximizing its profit, each must have a marginal cost of:
A. $5.
B. $4.
C. $3.
D. $2.

129. Refer to the above table. If each of the 100 firms in the industry is maximizing its profit and earning only a normal profit, each must have a total cost of:
A. $18,000.
B. $20,000.
C. $22,000.
D. $14,000.

130. Refer to the above table. If each of the 100 firms in the industry is maximizing its profit and earning only a normal profit, each must have an average total cost of:
A. $2.
B. $3.
C. $4.
D. $5.

can you explain how they got these answers thanks!

Explanation / Answer

126.6,000 units of output. - at 6000 units quantity demanded = quantity supplied i.e 6000*100 = 600000 is the quantity

127.$3 and $18,000, respectively. - marginal revenue = price = 3 and total revenue = 6000*3 = 18000

128. $3 because price = 3

129. $18,000. - total revenue = 18000 thus to earn normal profit cost = revenue

130. $3. - beacuse firm wants to earn normal profit

so the price = average total cost which when multiplied with quantity supplied gives normal profit

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