The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its economic profit
A) is more than $300.
B) is $300.
C) is less than $300.
D) The premise of the question is wrong because the firm is incurring an economic loss.
C
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The expenditure multiplier indicates that
a. changes in investment, government, or consumption spending can trigger much larger changes in output. b. an increase in saving will cause output to rise by a multiple of the additional saving. c. a market economy will be more stable than classical economists thought. d. the marginal propensity to consume is greater than one.
What incentive motivates a manufacturer to sell a product?
a) making profits on sales b) putting others out of buisness c) pleasing the consumer d) popularity of the product
Which statement best describes a capitalist economy?
A. The production and allocation of goods and services is determined primarily through government. B. The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government. C. The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets. D. The production and allocation of goods and services is determined primarily through markets.
By opening up to foreign markets, two things that countries generally experience are:
A. gaining access to a wide array of new products and saving money through access to cheaper goods. B. saving money through access to cheaper goods and finding new customers who generally pay less for their products. C. increase in negative trade outcomes with that nation and finding customers who generally pay less for their products. D. gaining access to a wide array of new products and increase in negative trade outcomes with that nation.