If a perfectly competitive firm like the one depicted in Figure 9-3 produces 275 units
a.
its profit will be larger than if it produces only 475
b.
its profit will be exactly the same as if it produces 475
c.
its profit will be smaller than if it produces only 475
d.
it will be forced to shutdown
e.
its profit will be smaller than if it produced 475 but it will still make a profit.
c
You might also like to view...
A bank run occurs when:
A) a bank experiences an extraordinarily large volume of withdrawals. B) a bank sells its assets to its own stockholders. C) the central monetary authority regulates the functioning of banks. D) a bank's assets exceeds its liabilities.
In terms of price indexes, what is a COLA?
a. A measure of the quality of living b. A consumer price adjustment c. An increase in wages designed to match consumer price increases d. An estimate of gross domestic product e. A measure of producer surplus
The real interest rate:
a. Is always lower than the nominal interest rate. b. Is strongly affected by expected inflation. c. Equals the nominal interest rate plus the expected inflation. d. Is determined by lenders solely. e. Reflects a nation's time value of money.
In long-run equilibrium, which of the following is not equal to price for a perfectly competitive firm?
A. short-run average variable cost B. long-run average total cost C. short-run marginal cost D. short-run average total cost