Jerry\'s Jellybean Factory produces 2,000 pounds of jellybeans per month and sel

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Jerry's Jellybean Factory produces 2,000 pounds of jellybeans per month and sells them in a perfectly competitive market. The marginal cost is $3 per pound, the average variable cost is $2 per pound, and the beans sell for $4 per pound. Jerry Question 40 options: A) could increase his profit by producing more beans. B) is maximizing profit. C) could increase his profit by producing fewer beans. D) is incurring an economic loss and should shut down. E) could increase his profit by raising the price of his beans. Save Question 41 (2.32156 points) For a perfectly competitive firm, profit maximization occurs when output is such that Question 41 options: A) total revenue (TR) equals total cost (TC). B) total cost (TC) is minimized. C) average total cost (ATC) is minimized. D) total revenue (TR) is maximized. E) marginal revenue (MR) = marginal cost (MC). Save Question 42 (2.32156 points) Price discrimination occurs when a firm Question 42 options: A) charges customers different prices for different goods. B) has a marginal cost curve that is horizontal. C) can determine which of the many market equilibrium prices it will charge. D) is able to sell different units of a good at different prices. E) charges customers the same price for different goods. Save Question 43 (2.32156 points) Firms that can effectively price discriminate Question 43 options: A) can prevent the resale of their products. B) have only one class of buyers, buyers willing to pay a high price. C) can be either perfectly competitive firms or monopolies. D) Both answers A and B are correct. E) Both answers A and C are correct. Save Save All ResponsesGo to Submit Quiz

Explanation / Answer

Ans)
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A) could increase his profit by producing more beans.
Since the marginal revenue is more than the marginal cost therefore by increasing production the firm can increase his profits.
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E) marginal revenue (MR) = marginal cost (MC).
The profit maximization rule is Mc equals MR and MC cuts Mr from below.For a perfectly competitive firm, this also means that the price equal MC.
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B) has a marginal cost curve that is horizontal
Price differentiation is when a firm charges a different price for the same goods to different customers.
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A) can prevent the resale of their products.
Firms that can price discriminate are able to prevent resale of their products.

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