Firms seek to maximize

If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then

Output Marginal Revenue Marginal-Cost 0 — — 1 $ 16 $ 10 2 16 11 3 16 13 4 16 17 5 16 21 Refer to the data in the accompanying table. If the firm’s minimum average variable cost is $10, the firm’s profit-maximizing level of output would be

Firms seek to maximize

A purely competitive firm does not try to sell more of its product by lowering its price below the market price because

Refer to the accompanying diagram. This firm will earn an economic profit if product price is

Refer to the diagram. Economies of scale

According to the law of diminishing marginal returns,

Output Marginal Revenue Marginal-Cost 0 — — 1 $ 16 $ 10 2 16 11 3 16 13 4 16 17 5 16 21 Refer to the data in the accompanying table. If the firm’s minimum average variable cost is $10, the firm’s profit-maximizing level of output would be

Susie purchased a nonrefundable ticket to a soccer match for $20. It will cost her $10 worth of gas and wear and tear to drive to the match and $5 to park her car. On the day of the match, Susie’s boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost?