Which of the following output levels has the lowest average fixed cost? 1,400 1,000 700 D. 200
[8] The firm depicted above is the only firm in the market. True False
[6] At 1,400 bushels of soybeans, average fixed cost equals $12. D. Unable to determine, since not enough information is provided.
[11] The Herfindahl index for the soybean market may be less than 10,000. True False
[12] At the present output level, the firm is in the following position: output 4000 units, market price = $1.10, total fixed cost = $2000, total variable cost = $1000, and marginal cost = $1.00. This firm is not maximizing its profit but could do so by decreasing its output, making zero profit, or maximizing its profit by increasing its output.
[13] Average Fixed Cost equals Average Total Cost - Average Variable Cost. A. True B. False
[14] Suppose a market consists of 10 firms, with each firm having a market share of 10. Accordingly, the 8-firm concentration ratio equals A. 10
[15] Suppose a market consists of 10 firms, with each firm having a market share of 10. Accordingly, the Herfindahl index equals: 1000. D. None of the above