MGEA02H3 Midterm: MGEA02 Term Test 2 2009 Fall Solution

12. If this firm faces a price of $38, the number of units it will produce per day in the short run is: A) 4 B) 5 C) 6 D) 7 E) 8 19 MC=42+2 G) 10 H) 11 1) 12 J) none of the above 38- 49,+2 9- 13. This firm's shut down price is: B) $8 C) $10 D) $11 E) $12 H) $15I ) $16 J) none of the above AVC= 2 F) $13 AVC=29 +2+1

13. This firm's shut down price is: A $3 B) $8 C) $10 G) $14 H) $15 I) $16 D) $11 E) $12 J) none of the above F) $13 AVC AVC

20. What is the shut down price for a competitive firm with Total Variable Cost =q- 6q? + 14q and Fixed Costs = 84? A) 0 B) $2 C) $3 D) $4 E) $5 F) $6 G) $7 H) $8 I) $9 J) none of the above