(Table) If the Toy-Making Firm in the Table Faces a Market

question 145

Multiple Choice

(Table) If the toy-making firm in the table faces a market price of $25 in the short run, it will
$\begin{array}{c}\hline {\text { Costs for Toy-Making Firm }} \\\begin{array}{|c|c|c|c|c|}\hline Q & \text { ATC } & \text { AVC } & \text { AFC } & \text { MC } \\\hline 0 & - & - & - & - \\\hline 8 & 93.75 & 31.25 & 62.50 & 31.25 \\\hline 17 & 58.82 & 29.41 & 29.41 & 27.78 \\\hline 27 & 46.30 & 27.78 & 18.52 & 25.00 \\\hline 40 & 37.50 & 25.00 & 12.50 & 19.23 \\\hline 54 & 32.41 & 23.15 & 9.26 & 17.86 \\\hline 66 & 30.30 & 22.73 & 7.58 & 20.83 \\\hline 76 & 29.61 & 23.03 & 6.58 & 25.00 \\\hline 84 & 29.76 & 23.81 & 5.95 & 31.25 \\\hline 91 & 30.22 & 24.73 & 5.49 & 35.71 \\\hline 96 & 31.25 & 26.04 & 5.21 & 50.00 \\\hline\end{array}\end{array}$

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