(Solved):   microeconomics Exercise 2: A perfectly competitive firm has cost function: \( A V C=2 Q+4 ...

 

microeconomics

Exercise 2: A perfectly competitive firm has cost function: \( A V C=2 Q+4(P: \$, Q: k g) \) When the market price is 24 , firm incurred a loss of \( 150 \$ \). 41. Supply function of this firm in short run is A. \( P=2 Q+4 \) C. \( \mathrm{MC}=4 \mathrm{Q}+4 \) B. \( P=4 Q+4 \) D. None of the above 42. Fixed cost of this firm is A. \( \mathrm{FC}=300 \$ \) C. \( \mathrm{FC}=500 \$ \) B. \( \mathrm{FC}=400 \$ \) D. None of the above 43. Break-even quantity of this firm is A. \( Q=8 \) C. \( Q=10 \) B. \( Q=9 \) D. None of the above 44. Break-even price of this firm is A. \( \mathrm{P}=44 \) C. \( P=46 \) B. \( \mathrm{P}=45 \) D. None of the above 45. Shut-down price of this firm is A. \( P=4 \) C. \( P=6 \) B. \( P=5 \) D. None of the above 46. When the market price is \( 50 \$ \), optimal quantity of this firm is A. \( Q=12,5 \) C. \( Q=14,5 \) B. \( Q=13,5 \) D. None of the above 47. (Continue question 46) Maximum profit of this firm is A. \( \pi=34,5 \$ \) C. \( \pi=54,5 \$ \) B. \( \pi=44,5 \$ \) D. None of the above 48. (Continue question 46) Producer surplus of this firm is A. \( \mathrm{PS}=164,5 \$ \) C. PS \( =364,5 \$ \) B. \( P S=264,5 \$ \) D. None of the above 49. When the market price is \( 30 \$ \), profit of this firm is A. \( \pi=115,5 \$ \) C. \( \pi<0 \) B. \( \pi=125,5 \$ \) D. None of the above 50. When the market price is \( 3 \$ \), firm should A. Continue producing B. Stop producing C. Expand output D. None of the above