Refer to the above data. The total cost of four units of output is: A. $260. B.

Question

Refer to the above data. The total cost of four units of output is:
A. $260.
B. $77.50.
C. $310.
D. $215.

Refer to the above diagram for a purely competitive producer. The firm's short-run supply curve is:

A. the abcd segment and above on the MC curve.
B. the bcd segment and above on the MC curve.
C. the cd segment and above on the MC curve.

D. not shown.

Refer to the above data for a monopolist. This firm will maximize its profit by producing:
A. 3 units.
B. 4 units.
C. 5 units.
D. 6 units.

Refer to the above data. The total cost of four units of output is: Refer to the above diagram for a purely competitive producer. The firm's short-run supply curve is: Refer to the above data for a monopolist. This firm will maximize its profit by producing:

Explanation / Answer

1.Total cost is (average total cost)*(quantity at that cost). where, average total cost =average variable cost+average fixed cost.

So, in this case Average total cost=$12.50+65=$77.50.Hence, total cost=77.50*4=$310.So, correct answer is C. $310.

2.Firm's short run supply curve is its marginal cost curve which is above the average variable cost.SO in this case it is the BCD curve.So the correct answer is B. the bcd segment and above on the MC curve.

3.The firm maximises its profit when marginal revenue( extra revenue earned from producing an additional unit) is equal to marginal cost( extra cost incurred on producing an additional unit).So in this case maximum profit is earned at 4 units of output.So, correct answer is B. 4 units.

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