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Subject - Economics:

Microeconomics

MCQ - 45-4055

Question:

Jason cleans swimming pools in a perfectly competitive local market. A profit maximizer, he can charge $10 per pool to clean 9 pools per day, incurring total variable costs of $80 and total fixed costs of $20. Which of the following is true?

  1. Jason should shut down in the short run, with economic losses of $20.
  2. Jason should shut down in the short run, with economic losses of $10.
  3. Jason should clean 9 pools per day, with economic losses of $20.
  4. Jason should shut down in the short run, with economic losses of $10.
  5. Jason should clean 9 pools per day, with economic profits of $10.

Correct Answer: D

Explanation:

TR > TVC, so Jason does not shut down. Subtracting all costs from TR, he is losing $10 per day.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Jason cleans swimming pools in a perfectly competitive local market. A profit maximizer, he can charge $10 per pool to clean 9 pools per day, incurri .... llowing is true? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 45-4055.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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