Assume You Know the Following Short Run Information for a Perfectly

question 33

Multiple Choice

Assume you know the following short run information for a perfectly competitive firm: $\begin{array}{c}\begin{array}{lll}\text {Quantity}\\\\6 \\7 \\8 \\9 \\10 \\11 \\12\end{array}\begin{array}{lll}\text {Price}\\\\10\\\\\\\\\\\\ \\\end{array}\begin{array}{cc}\text { Total } & \text { Marginal } \\\text { Revenue } & \text { Revenue }\\\\\\\\\\\\\\\\\end{array}\begin{array}{lll}\text {Total}\\\text {Cost}\\30\\35\\42\\51\\62 \\75\\90 \end{array}\begin{array}{cc}\text { Marginal } & \text { Total } \\\text { Cost } & \text { Profil } \\& \\& \\& \\&\\\\\\ \\\end{array}\end{array}$
Based on the information above, which of the following is false?

• A)The firm's average total cost of production increases for outputs in excess of 8 units.
• B)The firm's average total cost of producing 7 units is the same as for producing 6 units.
• C)The profit maximizing level of output for the firm would be 10 units.
• D)In the long run, the firm's price would be less than $10.

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Definitions:

Public Speaking

The act of speaking in front of a live audience with the intention to inform, persuade, or entertain.

Compulsion

An irresistible urge to perform an irrational or unnecessary act or behavior repeatedly.

Obsession

A persistent, intrusive, and unwanted thought or impulse that causes significant distress or anxiety.

Delusion

A false belief, not generally shared by others in the culture.