Consider a competitive firm with a TC = 50 + 2q2 + q.If price is $21, which statement is true?
A) The firm produces 5 units of output and is making an economic loss; the firm will exit the industry in the long run.
B) The firm produces 10 units of output and this is the long-run equilibrium.
C) The firm produces 5 units of output, and is making a positive economic profit; this is the long-run equilibrium.
D) The firm produces 5 units of output and this is the long-run equilibrium.
E) The firm shuts down in the short run and produces zero output; the firm will leave the industry in the long run.
Correct Answer:
Verified
Q1: Which statement is true?
A)In an increasing-cost industry,
Q3: The short-run supply curve for a firm
Q4: Consider a competitive firm with a TC
Q5: Assume that a firm has TC =
Q6: Assume that a firm has TC =
Q7: A competitive firm has a TC =
Q8: Which statement is true?
A)The long-run supply curve
Q9: Which statement is true?
A)Zero economic profits in
Q10: In the long run in a constant-cost
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