(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.

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Definitions:

Evolutionary Concepts

Ideas and principles derived from evolutionary biology that explain the origins, development, and diversification of life on Earth, including natural selection and adaptation.

Social Behavior

Actions among individuals within a group or society, influenced by social norms, culture, and personal interactions.

Optimize

To make the best or most effective use of a situation, opportunity, or resource.

Propagate

To spread and promote an idea, theory, or knowledge widely.