The graph shows the marginal cost and average total cost curves for a perfectly competitive firm. The horizontal axis measures output in thousands of units per year, from 0 to 50, increasing by 10. The vertical axis measures the revenue and cost in dollars per unit, from 0 to $25, increasing by $5. The graph shows two U-shaped curves, labeled MC and ATC. The minimum point of the ATC curve corresponds to an output of 30 and a cost of 10. The minimum point of the MC curve corresponds to an output of 15 and a cost of $4.50. The MC curve starts below the ATC curve. The upward-sloping portion of the MC curve intersects the ATC curve at its minimum point. The combinations of output and cost along the MC curve are (10, 5), (20, 5), (30, 10), and (40, 20). The combinations of output and cost along the ATC curve are (10, 22), (20, 12), (30, 10), (40, 13), and (50, 24). The above figure shows a perfectly competitive firm. If the market price is​ $15, the firm A. is making zero economic profit. B. is incurring an economic loss. C. might shut down but more information is needed about the AVC. D. is making an economic profit. E. will immediately shut down. Please answer before 12am...it's the cut-off time

If price exceeds the minimum of average variable cost, then comparing marginal revenue to marginal cost indicates how much additional profit is generated by the last unit of production and tells a firm whether it should increase output, decrease output or remain at the present level of output.

True

False

If the firm’s marginal cost is equal to its marginal revenue at the firm’s existing level of production, then the firm should maintain its current level of production to maximize profit.

True

False

Question text

A profit maximizing firm in a competitive market faces a price of $20 for its product. Its average variable cost is $15 and its average fixed cost is $8 at the quantity where marginal cost equals marginal revenue. In the short run, the firm will shut down and incur the total loss of its fixed costs.

True

False

A market is competitive if firms are price takers and goods offered for sale are essentially identical or largely the same for the firms.  

true

False

Where do the marginal cost curve and average total cost curve meet?

An aircraft factory manufactures airplane engines. The unit cost C (the cost in dollars to make each airplane engine) depends on the number of engines made. If x engines are made, then the unit cost is given by the function C(x)=0.3x2-156x+37,629 .What is the minimum unit cost? Do not round your answer.

Which of the following is not considered a holding cost? Interest Insurance Depreciation Opportunity cost Stock out cost

11) What is a fixed cost?

12) What is a variable cost?

13) Where does the marginal cost curve intersect the average total cost curve?

14) What will be the impact on the total product of labor curve of an improvement in technology?

15) According to the Law of Diminishing Returns, what happens to total output as more of a variable input is used with fixed resources?

"Find the retail cost of gasoline (per unit volume) in your area and find the cost of electricity for residential users in your area. (a) Compare the cost of energy (per MJ) from gasoline and from electricity (b) The efficiency of a gasoline automobile is about 20% and the efficiency of a battery electric vehicle is about 85%. Discuss the relative transportation costs for gasoline and electric vehicles."

Which of the following statements about cost accounting systems is FALSE? A) The cost accounting system provides the cost data that managers use for decision making. B) The cost accounting system is the most fundamental component of a cost management system. C) A cost accounting system that provides accurate information is a key success factor for all types of organizations. D) Some types of organizations do not need cost accounting systems. E) none of the above