Sophia Microeconomics Unit 3 Challenge 3 Questions and Answers with Complete Solutions

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Based on this graph, which of the following statements is true at an output of 7,000 indicated by the green line? a.) The firm should increase output. Which of the following statements is true at ... the profit maximizing point? b.) The difference between total cost and total revenue is greatest. Which of the following statements is true when a firm is maximizing its profit? b.) The slope of the total revenue curve and total cost curves are equal. Looking at this graph, the number of daily flights to Milwaukee that would provide Peace Airlines with profit maximization is __________. a.) Six flights per day All profit maximizing firms will produce where __________. d.) the marginal revenue equals the marginal cost If a profit maximizing firm is currently producing 20 units, it should increase production because __________. c.) the marginal cost is less than the marginal revenue at that point If the price of the product is $4 and the cost of each employee is $20, how many employees should the firm hire to maximize their profit? b.) This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:26:18 GMT -05:00 https://www.coursehero.com/file/69216965/Micro-Unit-3-Challange-3docx/ Three employees If the price of the product is $2 and the cost of each employee is $15, how many employees should the firm hire to maximize their profit? b.) Four employees If the price of the product is $6 and the cost of each employee is $40, how many employees should the firm hire to maximize their profit? c.) Four employees Based on this graph, the firm's breakeven point is at a price of __________. b.) $24 If STB Airlines is currently breaking even, how many flights are they running? b.) 13 flights Based on this graph, the firm's breakeven point is at a price of __________. b.) $24 Assuming the price of scarves is currently $40, which of the following statements is true? b.) The firm would operate at a loss in the short run. For a perfectly competitive firm, a price above $20 would result in __________. a.) This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:26:18 GMT -05:00 https://www.coursehero.com/file/69216965/Micro-Unit-3-Challange-3docx/ a short run profit, which would encourage other firms to enter the industry When would the firm pictured above shut down? a.) At any price below P2 The short-run supply curve is represented by the __________ curve from above the _________ onward. d.) marginal cost; shut-down point Which of the following images represents the short-run supply curve shaded in yellow? A profit-maximizing, perfectly competitive firm's short-run supply curve would start at which output level? b.) 25 units Which of the following is NOT true of a long-run average cost curve? This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:26:18 GMT -05:00 https://www.coursehero.com/file/69216965/Micro-Unit-3-Challange-3docx/ d.) It must always be equal to or lie above any short-run average cost curve. Which of the following is true regarding the long-run average cost curve? a.) The LRAC is comprised of a series of short-run average cost curves. Which of the following is NOT true of a long-run average cost curve? d.) The long-run average cost curve rises, then falls, as production increases. Valley View Chicken Coop's costs went from $0.05 per egg when they harvested from 50 chickens to $0.08 per egg when they harvested from 80 chickens. Which of the following describes this scenario? b.) Diseconomies of scale Sometimes it is more efficient for one firm to produce all the output for a given market. Which of the following describes this scenario? a.) Natural monopoly Production costs can vary among industries, and among different firms within a given industry due to __________. d.) the differences between variable and fixed cost [Show More]

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