In the above figure, if the price is $16 per unit, a profit maximizing perfectly competitive firm will
A) shut down.
B) incur an economic loss but continue to operate.
C) make zero economic profit.
D) make an economic profit.
D
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Any two of these events in questions 1 and 2 occur together? (Draw the diagrams!)
What will be an ideal response?
Which of the following market structures is considered a differentiated products market?
a. Perfect competition b. Monopolistic competition c. Monopoly d. Both a and b are differentiated products markets.
Refer to Figure 10-9. If the consumer has $240 to spend on DVDs and CDs, what is the price of a CD if the budget constraint is BC2?
A) $8 B) $10 C) $20 D) $40
Which one of the following countries has a high level of trade, exporting almost 50% of their total production?
a. United States b. United Kingdom c. Germany d. Italy