An overall decrease in the market price level
Answer:
d. loss of exactly $27.
Explanation:
Under a competitive firm, a profit-maximizing firm level of output can be find out by equating the marginal revenue with its marginal cost i.e
Marginal revenue = Marginal cost
As we know that
Average total cost = Total cost ÷ Quantity
$10 = Total cost ÷ 9
So, the total cost is
= $10 × 9
= $90
And,
Total revenue = Price × quantity
= $7 × 9
= $63.
So,
Profit = Total revenue - total cost
= $63 - $90
= -$27
This amount comes in a negative which reflects that there is a loss of $27
Answer:
The answer is: D) $1.75
Explanation:
Consumer surplus is the difference between the maximum price that a consumer is willing to pay for a good and the actual price paid for the good.
Larry, Alan and Ryan were all willing to pay more for a bottle of soda than the actual price of the soda.
- Larry's consumer surplus = $2 - $1 = $1
- Alan's consumer surplus = $1.50 - $1 = $0.50
- Ryan's consumer surplus = $1.25 - $1 = $0.25
The total consumer surplus is $1 + $0.50 + $0.25 = $1.75
Answer:
I think it's B. There is no need to mark a false start in a full verbatim file.