EQ #8 – AGEC 105 – October 14, 2013 (4pts) 1. E MC $ D 50 ATC C AVC 30

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EQ #8 – AGEC 105 – October 14, 2013 (4pts) 1. E MC $ D 50 ATC C AVC 30 (1/2 pt) (a) When P = $50/unit, what is the profit maximizing amount of output produced by this firm operating in a perfectly competitive environment? (1/2 pt) (b) Suppose that at this profit maximizing output level ATC=$32/unit. What is the maximum level of profits? (1/2 pt) (c) What is the shutdown price for the firm? (1/2 pt) (d) What is the breakeven quantity for the firm? (1/2 pt) (e) What is the marginal revenue for this firm when P=$50? E MC $ D 50 ATC C AVC 30 B 16 14 A 25 30 32 40 Q (units)

E MC $ D 50 ATC C AVC 30 B 16 14 A Q 25 30 32 40 (units) (1/2 pt) 2. The supply curve for the firm is line segment ABCDE. True or False. (1/2 pt) 3. If a commodity sells for $30/unit and you determine that the MPP for the use of land in the production of this commodity to be 200 units/acre, what is the MVP of the land? (1/2 pt) 4. What is the rule to determine the optimal level of input use?

Random Question What occupation in the public arena (not the private sector) in most states enjoys the highest salary?