The following information is relevant for an individual firm operating in a perfectly competitive market. Output 30 Variable Cost $800 Fixed...

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Economics

The following information is relevant for an individual firmoperating in a perfectly competitive market.
Output 30
Variable Cost $800
Fixed Cost $1,200
Marginal Cost $60
Price $60
What will be the firm's production decision in theshort-run?
Exit
Shutdown
Other firms will enter into the market
Operate
A fixed cost is a cost that:
exists only in the long-run.
does not vary with output.
changes based on the number of workers.
varies with output.
True or False:
A reason economies of scale exists is due to: Old tools andequipment can no longer be used.
FALSE
TRUE
Suppose you have the following information on a firm:
Marginal Revenue $240
Marginal Cost $250
Assume it is their goal to maximize profit.
Marginal Revenue $240
Marginal Cost $250
Decrease output to maximize profit.
Not enough iniformation to determine.
They are producing the profit maximizing level of output.
Increase output to maximize profit.

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Ques1 Total Revenue Price Quantity Produced 60 30 1800 Total Cost Fixed Cost Variable Cost 1200 800 2000 Profit will be Total Revenue Total Cost 1800 2000 200 Since the See Answer

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Output	30
Variable Cost	$800
Fixed Cost	$1,200
Marginal Cost	$60
Price	$60