Table: Decision to Enter $$\begin{array} { c c c }
\hline \begin{array} { c }
\text { Quantity } \
\text { (per day) }
\end{array} & \begin{array} { c }
\text { Marginal Revenue } \
\text { = Price }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { Cost }
\end{array} \
\hline 1 & \$ 750 & \$ 150 \
2 & \$ 750 & \$ 400 \
3 & \$ 750 & \$ 750 \
4 & \$ 750 & \$ 1,250 \
\hline
\end{array}$$ Use the table. A firm is considering whether to enter an industry, with the conditions upon entry set forth in the table. Entering the industry would require the firm to pay $800 per day in fixed costs. This firm should ________ the industry because its profits would be ________ per day.
A) not enter; -$1,350
B) not enter; -$800
C) enter; $700
D) enter; $150

Question

Table: Decision to Enter $$\begin{array} { c c c } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { (per day) }
\end{array} & \begin{array} { c } 
\text { Marginal Revenue } \
\text { = Price }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Cost }
\end{array} \
\hline 1 & \$ 750 & \$ 150 \
2 & \$ 750 & \$ 400 \
3 & \$ 750 & \$ 750 \
4 & \$ 750 & \$ 1,250 \
\hline
\end{array}$$ Use the table. A firm is considering whether to enter an industry, with the conditions upon entry set forth in the table. Entering the industry would require the firm to pay $800 per day in fixed costs. This firm should ________ the industry because its profits would be ________ per day.
A) not enter; -$1,350
B) not enter; -$800
C) enter; $700
D) enter; $150

Quizplus · Accepted Answer

The Answer of Table: Decision to Enter $$\begin{array} { c c c } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { (per day) }
\end{array} & \begin{array} { c } 
\text { Marginal Revenue } \
\text { = Price }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Cost }
\end{array} \
\hline 1 & \$ 750 & \$ 150 \
2 & \$ 750 & \$ 400 \
3 & \$ 750 & \$ 750 \
4 & \$ 750 & \$ 1,250 \
\hline
\end{array}$$ Use the table. A firm is considering whether to enter an industry, with the conditions upon entry set forth in the table. Entering the industry would require the firm to pay $800 per day in fixed costs. This firm should ________ the industry because its profits would be ________ per day.
A) not enter; -$1,350
B) not enter; -$800
C) enter; $700
D) enter; $150

Table: Decision to Enter Use the Table