Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his only product) is $3. If the marginal cost function is MC=0.1q:(i) The profit-maximizing level of output is _____(ii) The variable profit is _____(iii) The producer surplus is _____If Kenan also has a fixed cost of $50, then:(iv) The total profit is _____If Kenan cannot avoid the fixed cost, Kenan should _____Answer options (please only select from the following): -5, 0, 3, 5, 10, 30, 45, 50, continue to produce, shut down, other

"A perfectly competitive market structure is the one which consists of many buyers and sellers and…

Answered: Kenan's stationary shop operates in a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Kenan's stationary shop operates in a perfectly competitive market where the price for a pen (his only product) is $3. If the marginal cost function is MC=0.1q:

(i) The profit-maximizing level of output is _____

(ii) The variable profit is _____

(iii) The producer surplus is _____

If Kenan also has a fixed cost of $50, then:

(iv) The total profit is _____

If Kenan cannot avoid the fixed cost, Kenan should _____

Answer options (please only select from the following): -5, 0, 3, 5, 10, 30, 45, 50, continue to produce, shut down, other

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