Question

1. This firm is losing money by releasing output onto market. Should the firm have chosen...

1. This firm is losing money by releasing output onto market. Should the firm have chosen to release zero output (i.e. shut down)?

A. Yes
B. No

2. This cannot be a long-run equilibrium because the firm is earning losses. What is the break-even price at which this firm would earn zero profit (round to the nearest integer)?

A. 10
B. 14
C. 17
D. 20

A firm is producing such that MR<MC so they should release less output. The current market price is $12 and they should release a quantity of 3 to market.

It is a perfectly competitive market and the total cost function is TC(q) = 36 + 2q^2.
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