Below, the graph on the left shows the short-run cost curves for a firm in a perfectly competitive market, and the graph on the right shows the current market conditions in this industry. What is the maximum amount of profit the firm can earn?
A. $150
B. $80
C. $50
D. $40
Answer: C
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What will be an ideal response?
In an English auction, the ________ bidder wins the auction and pays ________.
A) second-highest; the amount of the second-highest bidder B) highest; the amount of the bid C) second-highest; the amount of the bid D) highest; the amount of the second-highest bidder
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If the price of a unit of output for a perfectly competitive firm is $5 and the profit-maximizing condition is met, then MPL/PL = MPK/PK = MPA/PA will be equal to
A. $5. B. $1.67. C. $0.20. D. $0.05.