Calculate The Profit Of A Firm In The Short Run

Question

1. Costs for Toy-Making Firm
Q   ATC        AVC       AFC       MC
0    —            —          —          —
8    93.75    31.25    62.50    31.25
17    58.82    29.41    29.41    27.78
27    46.30    27.78    18.52    25.00
40    37.50    25.00    12.50    19.23
54    32.41    23.15    9.26     17.86
66    30.30    22.73    7.58     20.83
76    29.61    23.03    6.58     25.00
84    29.76    23.81    5.95     31.25
91    30.22    24.73    5.49     35.71
96    31.25    26.04    5.21     50.00

(Table) If the toy-making firm in the table in the short run faces a market price of \$25:

A) it will maximize its profits by producing 96 toys.
B) it will minimize its losses by shutting down.
C) it will minimize its losses by producing 27 toys.
D) it will minimize its losses by producing 76 toys.

2. When a firm experiences economies of scale:

A) its long-run average total costs remain the same as output increases.
B) it runs into bureaucratic red tape.
C) its long-run average total costs increase as output increases.
D) it can take advantage of specialization of labor and management.

Summary

These multiple choice questions belong to Economics. The 1st question is about calculating the profit of a firm in the short run and the 2nd question is about firm experiencing economies to scale.

Total Word Count NA

• Rasha

this is a very good website

• maani

I have 50 questions for the same test your page is showing only 28

• joeanne

• joeanne

hi can anyone help or guide me to my assignments. thanks

• Monik

• Cristina

This solution is perfect ...thanks

• Janete

Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

• Sandeep

Perfect bank of solution.

• Oxana

great !

• Paul Brandon-Fritzius

thanks for the quick response. the solution looks good. :)

• tina Johnson

thnx for the answer. it was perfect. just the way i wanted it.

• Giuseppe

works fine.