Suppose the variable cost to produce quantity q is TC(q) = q2/10. Suppose the firm is a price- taker and the market price is p = 100; its fixed cost is currently 6600. If this firm wants to stay in business, it has to:
A) reduce its fixed cost to 6,000.
B) do nothing.
C) reduce its fixed cost to zero.
D) reduce its fixed cost to 5,000.
Correct Answer:
Verified
Q2: All of the following assumptions apply to
Q3: suppose there are two individual demand curves;
Q4: A Walrasian auctioneer:
A)seeks the highest price a
Q5: In short run competitive equilibrium:
A)p = q.
B)p
Q6: In the long run a competitive firm
Q8: A market demand curve:
A)is less elastic than
Q9: All of the following assumptions apply to
Q10: When referring to demand, the extensive margin
Q11: There are 100 identical demanders of product
Q12: A profit maximizing firm:
A)also minimizes marginal costs.
B)behaves
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