Chapter 1. Perfect Competition

1.1

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No, that's not it. At from 10 to 20 units, the change in total revenue is 50 and the change in quantity is 10, so the MR = 50/10 = $5.
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No, that's not it. For a perfectly competitive firm with no price control, MR = P. At all levels of output, the MR = $5, hence the price = $5.
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Incorrect. At a quantity of 40, TR – TC = $200 - 290 = -$90.

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Incorrect. At a quantity of 20, TR – TC = $100-85 = 15. No other quantity choice yields as high a profit.

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Incorrect. The firm will lose $100 if it stays in business (TC= $800 + $300 = $1100 and TR=$1000 so TR – TC = -$100) and $300 if it shuts down (TC = $300 and TR = 0 so TR – TC = -$300).

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Incorrect. The firm will produce the quantity where MR = MC.