If price is equal to short-run average variable cost, the firm is at the point known asQuestion 3Select one:a.the profit maximizing point.b.the shutdown point.c.the break even point.d.the revenue maximizing point.

If the market price is below the average variable cost, the firm is:Multiple choice question.losing money in the long run and should shut down.breaking even in the short run and should shut down.making money in the short run and should keep producing.losing money in the short run and should shut down.

A firm operates in a perfectly competitive market. The firm’s total cost of production is given by the following equation: TC(q) = 100 + 33q2 + 5q, where q is the quantity supplied. What is the shutdown point for this firm in the short run, or in other words, what is the market price below which a firm is better off not supplying any units in the short run? [Advice: draw AVC and MC]

The short-run marginal and average variable cost curves for a competitive firm are given by MC = 2+2q and AVC = 2+q. The profit-maximizing level of output for a firm is 4 and its total fixed cost is $18. Which of the following must be true about the firm? Group of answer choices The firm is charging a price of $4 and covering its average variable cost, hence it should continue operating in the short-run. The firm is charging $10 and will remain in the industry in the short-run; but it is not covering its total costs and will consider leaving the industry in the long run. The firm is charging a price of $4 and making a short-run loss, hence it should shut down immediately. The firm is charging a price of $10 and making a zero profit, hence it should shut down eventually. The firm is charging a price of $10 and making a positive profit, hence it will remain in the industry in the long-run.

The firm’s short-run supply curve is a(n) __-sloping curve that begins at __ average variable cost.Multiple choice question.downward; maximumupward; maximumupward; minimumdownward; minimum

Assume that all firms in a competitive industry have cost curves given by the following: TC = 15 +8q +9q2. In the short-run, the price at which a firm will start to shut down is