Refer to Figure 13-15 to answer the following questions
a. What is the profit-maximizing output level?
b. What is the profit-maximizing price?
c. What is the average total cost at the profit-maximizing output level?
d. What area represents the firm's profit?
e. At which output level are economies of scale exhausted?
f. Does this graph most likely represent the long run or the short run? Why?
a. The profit maximizing level of output is Q4.
b. The profit-maximizing price is P4.
c. The ATC at the profit-maximizing output level is P2.
d. The firm's profit is represented by area P2P4ed.
e. Economies of scale are exhausted at output Q3.
f. Since the graph displays a profit, it most likely represents the short run.
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Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. What is the cost to Firm B of eliminating 2 tons of pollution?
A. $350 B. $250 C. $300 D. $140 E. $540
Regarding open economies, economists tend to find evidence that
A. the more closed an economy is, the higher the rate of growth the economy will experience. B. open economies tend to have access to smaller markets than do closed economies. C. free trade encourages a more rapid spread of technology, and hence increases economic growth. D. trade tariffs tend to improve economic growth.