1.Which of the following explains why marginal cost curves are upward sloping? Increasing marginal benefit Total costs increase as output increases Diminishing marginal product of inputs This statement is true only for inferior goods 2. If a firm generates $232844 in revenue, earns $95728 in economic profit, and its explicit costs are $80,000, how much are its implicit costs? $152844 $57116 $137116 $175728 3. Consider the table of firm costs and revenue below. It may be useful to calculate the missing values. Q MC MR TC TR 1 3 5 13 5 2 2 5 15 10 3 3 5 4 5 5 5 8 5 6 12 5 If the firm chooses Q to maximize short-run profit, what will the profit be? ?=−6\pi = -6 ?=−3\pi = -3 ?=3\pi = 3 ?=6

1.Which of the following explains why marginal cost curves are upward sloping? Increasing marginal benefit Total costs increase as output increases Diminishing marginal product of inputs This statement is true only for inferior goods 2. If a firm generates $232844 in revenue, earns $95728 in economic profit, and its explicit costs are $80,000, how much are its implicit costs? $152844 $57116 $137116 $175728 3. Consider the table of firm costs and revenue below. It may be useful to calculate the missing values. Q MC MR TC TR 1 3 5 13 5 2 2 5 15 10 3 3 5 4 5 5 5 8 5 6 12 5 If the firm chooses Q to maximize short-run profit, what will the profit be? ?=−6\pi = -6 ?=−3\pi = -3 ?=3\pi = 3 ?=6

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 1.3P

See similar textbooks

Q	MC	MR	TC	TR
1	3	5	13	5
2	2	5	15	10
3	3	5
4	5	5
5	8	5
6	12	5

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