ECON 215 Winthrop University Weeks 15 & 16 Microeconomics Marginal Cost Questions hello the assignment has 7 questions mostly multiple choice. i will need

ECON 215 Winthrop University Weeks 15 & 16 Microeconomics Marginal Cost Questions hello the assignment has 7 questions mostly multiple choice. i will need the assignment turned in before 11:30 tonight 20SP ECON 215
Dr. Danko Tarabar
Weeks 15-16 homework
Due Thursday, April 23, 2020, at 11:59 PM
Email me directly your Word file at tarabard@winthrop.edu no later than 11:59 PM on April
23rd (Thursday).
Instructions: identify your preferred answer in bold, underlined, or highlighted.
1. Which of the following statements is correct?
a. The demand curve facing a competitive firm is horizontal, as is the demand curve
facing a monopolist.
b. The demand curve facing a competitive firm is downward sloping, whereas the demand
curve facing a monopolist is horizontal.
c. The demand curve facing a competitive firm is horizontal, whereas the demand curve
facing a monopolist is downward sloping.
d. The demand curve facing a competitive firm is downward sloping, as is the demand
curve facing a monopolist.
2. If a monopolist can sell 7 units when the price is $4 and 8 units when the price is $3, then marginal
revenue of selling the eighth unit is equal to
a. $3.
b. $4.
c. $24.
d. -$4.
3. For a profit-maximizing monopolist,
a. P > MR = MC.
b. P = MR = MC.
c. P > MR > MC.
d. MR < MC < P. 4. Suppose a monopolist charges a price of $27 for its product and sells 10 units at that price. At 10 units of production the firm has average fixed cost equal to $10 and average variable cost equal to $12. How much total profit is the firm earning at this price? (Hint: use AVC and AFC to find ATC. Then, find TC knowing Q=10). a. $5 b. $25 c. $50 d. $140 Page 1 of 3 Table 1 5. Tanya has the following demand curve for selling taffy. Assume that Tanya has a marginal cost of $2 per unit. Price $10 $8 $6 $4 $2 Quantity 1 2 3 4 5 i. What is the firm’s optimal Q? ____________ ii. What is the firm’s TR at this optimal Q? __________ iii. What is the firm’s TC at this optimal Q? ___________ (hint: if the marginal cost of a single unit produced is $2, what is the total cost of X units? 2*X.) iv. What is the firm’s profit at this optimal Q? ___________ Figure 1 The figure is drawn for a monopolistically competitive firm. P 32 24 MC 18 16 Demand 12 8 MR 4 8 12 16 20 24 28 32 Q 6. Refer to Figure 1. This firm’s total cost (TC) is ______*______ = _________, and total revenue is ______*_______ = _________. (Fill in the blanks with appropriate values.) Page 2 of 3 Figure 2 The figure is drawn for a monopolistically-competitive firm. Price MC 140 123.33 ATC Demand 90 56.67 MR 100 133.33 Quantity 7. Refer to Figure 2. Is this monopolistically competitive firm in its short-run or in its long-run equilibrium? How do you know? Explain your reasoning in 1-2 sentences. Page 3 of 3 Purchase answer to see full attachment