## Which of the following figures is an accurate depiction of an effective price floor P_1 set by the government?

4. Question 4 Which of the following figures is an accurate depiction of an effective price floor P_1 set by the government? 1 point

## Suppose firm X is facing an exogenously given price, P0, and has found its profit maximizing output point Q0. Further, suppose that at this output, profits are zero. An increase in fixed cost with no other changes to cost curves will result in which of the following?

5. Question 5 Suppose firm X is facing an exogenously given price, P0, and has found its profit maximizing output point Q0. Further, suppose that at this output, profits are…

## The area under the MC curve is not a good measure of total cost. Which of the following reasons offers the best explanation of why that is true?

3. Question 3 The area under the MC curve is not a good measure of total cost. Which of the following reasons offers the best explanation of why that is…

## Which of the following is optimal for a firm in the long run if that firm is facing negative profits?

6. Question 6 Which of the following is optimal for a firm in the long run if that firm is facing negative profits? 1 point   Shutdown   Exit the…

## If a firm is facing an exogenously given price, P0, and has found its profit maximizing output point, an increase in fixed cost will cause the firm to increase its output to help cover these higher fixed costs.

9. Question 9 If a firm is facing an exogenously given price, P0, and has found its profit maximizing output point, an increase in fixed cost will cause the firm…

## A graph showing marginal revenue and marginal cost will allow you to discover the firm’s profit maximizing output as well as a graphical representation of this level of profit.

4. Question 4 A graph showing marginal revenue and marginal cost will allow you to discover the firm’s profit maximizing output as well as a graphical representation of this level…

## In this module, the firm had no control over the exogenously given price, P0, the market paid for its output. This means the profit maximizing output for the firm is independent of this price the firm has no control over.

2. Question 2 In this module, the firm had no control over the exogenously given price, P0, the market paid for its output. This means the profit maximizing output for…

## If a firm is maximizing profit at Q0, a change in fixed cost, either up or down, will have no impact on short run profit maximizing output.

12. Question 12 If a firm is maximizing profit at Q0, a change in fixed cost, either up or down, will have no impact on short run profit maximizing output….

## A firm facing an exogenously given market price, P0, will find its short run profit maximizing output is always where:

11. Question 11 A firm facing an exogenously given market price, P0, will find its short run profit maximizing output is always where: 1 point   Marginal revenue exceeds average…

## If a firm is facing an exogenously given price, P0, and industry conditions change such that the new market price is P1 > P0, which of the following is true?

10. Question 10 If a firm is facing an exogenously given price, P0, and industry conditions change such that the new market price is P1 > P0, which of the…