Question

Q95. If average total cost is $180/unit, quantity produced is 20 units and total fixed cost is $1500, what is the total variable cost for the output of 20 units? --------------------------------------

Q96A. A firm's fixed costs are $194,000, and it sold 1900 units at $155 each. The total variable costs were $99,000. What is the net   income or loss of the firm? -------------------------------------------------------------

Q99B. When there is an upward shift in demand, equilibrium price ------------------------- and equilibrium quantity -----------------------

a. falls, falls                               b. rises, rises                            c. rises, falls                                 d. falls, rises

Q100. If the government establishes the market price above the equilibrium price, that price is a price ----- and there is a -------

a. ceiling, shortage                 b. ceiling, surplus                       c. floor, surplus             d. floor, shortage                           

Answer 1

95) ATC=180

Q=20

TFC=1500

AFC=1500/20=75

AVC=ATC-AFC=180-75 = 105

TVC=105*20 = 2100

96 A) FC=194000, VC=99000

TR=1900*155=294500

TC=FC+VC=194000+99000 = 293000

PROFIT = TR-TC = 294500-293000 = 1500

99 B) When there is an upward shift in the demand curve,both equilibrium quantity and price will rise

Option(B)

100) When the market price is set above the equilibrium price then it is called a price floor at which QS>QD so there will be a surplus in the market.

Option(C)