Table of contents

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

11. Perfect Competition

Short Run Shutdown Decision

Microeconomics

11. Perfect Competition

Short Run Shutdown Decision

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Multiple Choice

The price for a pair of edible underpants is $50. In the short-run, the firm's profit (or loss) is:

$200 profit

$40 loss

$100 loss

Break-even

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Verified step by step guidance

Identify the total cost for each quantity level by adding Total Fixed Costs and Total Variable Costs. For example, at quantity 1, Total Cost = Total Fixed Costs + Total Variable Costs = 100 + 50 = 150.

Calculate the total revenue for each quantity level by multiplying the price per unit by the quantity. For example, at quantity 1, Total Revenue = Price per unit * Quantity = 50 * 1 = 50.

Determine the profit or loss for each quantity level by subtracting Total Cost from Total Revenue. For example, at quantity 1, Profit/Loss = Total Revenue - Total Cost = 50 - 150 = -100.

Repeat the calculation for each quantity level to find the profit or loss at each level. Compare these values to identify the correct answer.

Analyze the results to determine which option (e.g., $200 profit, $40 loss, $100 loss, Break-even) matches the calculated profit or loss for the given quantity levels.