× 1) Course Home Page XPTake a Test - Mesia Byrd X ke a Test . Mesia C B https:/
ID: 1221606 • Letter: #
Question
× 1) Course Home Page XPTake a Test - Mesia Byrd X ke a Test . Mesia C B https://www.mathxl.com/Student/Player Test.aspx?testld-133994350 Principles of Economics st: Final Exam is Question: 6 pts 80137 (7 complete) oinsemia growing is a perfectly competitive industry and all poinsettia growers have the same cost curves he market price of poinsettias is $13 a pot and each grower maximizes pot by producing 800 pots a week The average total cost of producing poinsetias is $24 a pot Minimum average varlable cost is $11 a pot and the minimum average total cost in $16 a pot inthe short nn. each grower is|makng an economic profit!ofS aweek Answer with a positive number Because fims in the industry aresome The rum ber of poinsettia growers wil O A. incuring an economic loss, exit, decrease O B. incuming an economic loes enter and some firma will eai Sonme fims ill sonse fims will the mark et in the long run increase or decrease depending on the relative sumber of etering and exiting fims C. making an economic pofteter, increase 0 D. making zero economic profit shut down and ext decrease E. making an economic proft exit and some fines erner decrease or increase dependng on te relative number of eating and emg ms Cick to select yout answers Ask me @Explanation / Answer
Ans)
TR=13*800=10400
TC=AVC*Q=11*800=8800
IN THE SHORT RUN EACH GROWER IS MAKING AN ECONOMIC PROFIT OF (10400-8800)=1600
A WEEK
AN ECONOMIC PROFIT;ENTER;INCREASE
Ans is option C
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.