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http://tinypic.com/view.php?pic=2wqcs9v&s=5 12. In the figure above, the perfect

ID: 1176487 • Letter: H

Question

http://tinypic.com/view.php?pic=2wqcs9v&s=5

12. In the figure above, the perfectly competitive firm's profit is
a. 0NJU
b. Cannot be determined from the information given.
c. LNJG
d. MNJH
e. N-M

13. In the figure above, total fixed cost at the profit-maximizing output is
a. 0MHU
b. LMHG
c. LNJG
d. 0LGU
e. MNJH

http://tinypic.com/view.php?pic=23rams&s=5

14. Assume the firm in the figure above follows its optimal strategy. At price P1, the firm's total revenye would be
a. 0P2EQ1
b. P2P4DE
c. 0P4DQ1
d. 0
e. P1FQ10

15. Assume the firm in the figure above follows its optimal strategy. At price P3, the firm's total revenue would be
a. (P3 - P2)*Q1
b. (P3 - P1)*Q2
c. P3*Q2
d. 0
e. P1P4DF

http://tinypic.com/view.php?pic=96daw7&s=5

16. Refer to the figure above. When the market output is Q1, what quantity does the individual firm supply?
a. Cannot be determind from the information given.
b. q1
c. q2 - q1
d. This firm will not produce because it will take losses
e. q2

17. Given S2 in the market, what is the firm's total profit?
a. (P2)(q1)
b. 0P1Bq2
c. 0P2Aq1
d.(P1-P2)q1
e. none of the above

http://tinypic.com/view.php?pic=aulxl&s=5

20. In the figure above, the profit-maximixing firm is making an average
a. positive profit on each unit prodfuced equal to the distance E-C
b. positive profit on each unit produced equal to the distance G-B
c. negative profit on each unit produced equal to the distance G-B
d. negative profit on each unit produced equal to the distance G-D
e. negative profit on each unit produced equal to the distance E-A

Explanation / Answer

12) d. MNJH


13) b. LMHG


14) e. P1FQ10


15) c. P3*Q2


16) e. q2


17) c. 0P2Aq1


20) d. negative profit on each unit produced equal to the distance G-D