Equilibrium Price Is $17 in a Perfectly Competitive Market

question 119

Multiple Choice

Equilibrium price is $17 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 275 units of output. At 275 units, ATC is $19, and AVC is $13. The best policy for this firm is to __________ in the short run. Also, total fixed cost equals __________ for this firm.

• A)continue to produce; $3,575
• B)shut down; $699
• C)continue to produce; $1,650
• D)shut down; $2,796
• E)continue to produce; $6

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Definitions:

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a specified level of confidence.

Confidence Interval

A variety of values, sourced from sample statistics, with a high likelihood of containing an undetermined population parameter's value.

Sample Size

The number of observations or elements selected from a population to be analyzed.

Population Mean

The average of a set of values in an entire population, representing the central tendency of the population.