menu
Sign up

Refer to Figure 12-5

Question 67
Multiple Choice

Refer to Figure 12-5.The firm's manager suggests that the firm's goal should be to maximize average profit.In that case,what is the output level and what is the average profit that will achieve the manager's goal? A) Q = 1,350 units, average profit =$5 B) Q = 1,100 units, average profit =$6 C) Q = 1,350 units, average profit =$9 D) Q = 1,800 units, average profit =$20

Related questions
Q 68
Refer to Figure 12-5.The firm's manager suggests that the firm's goal should be to maximize average profit.If the firm does this,what is the amount of profit that it will earn? A) $6,600 B) $6,750 C) $12,150 D) $36,000
Q 69
Refer to Figure 12-5.What is the amount of the firm's fixed cost of production? A) $5,400 B) $6,750 C) $8,100 D) It cannot be determined.
Q 70
Refer to Figure 12-5.If the firm's fixed cost increases by $1,000 due to a new environmental regulation,what happens in the diagram above? A) All the cost curves shift upward. B) Only the average variable cost and average total cost curves shift upward; marginal cost is not affected. C) Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected. D) None of the curves shifts; only the fixed cost curve, which is not shown here, is affected.
logo
© 2020 QuizPlus. All Right Reserved