If a firm in a perfectly competitive market faces the cost curves in the graph shown, which of the following is true? The firm:
A. if it produces at profit-maximizing level of output it will make positive profits when price is higher than $11.
B. will shut down if market price is below $15, but above $11.
C. if it produces at profit-maximizing level of output it will make positive profits when price is higher than $15.
D. should always produce at least 43 units in order to maximize profits.
Answer: C
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Xenonia has a larger supply of labor than Techland. If the labor supply in both the countries increases by the same amount while their capital stocks remain unchanged, ________
A) the increase in Techland's output will be more than the increase in Xenonia's output B) the increase in Xenonia's output will be more than the increase in Techland's output C) Xenonia's income per capita will decrease while Techland's income per capita will increase D) Xenonia's income per capita will increase while Techland's income per capita will decrease
In September 2010, the finance minister of ________ declared that the world was "in the midst of an international currency war" because of rapid appreciation in the value of the country's currency, the ________
A) England; pound sterling B) Germany; euro C) Japan; yen D) China; renminbi E) Brazil; Real
The monopolist's outcome happens at a:
A. cost that is equal to a perfectly competitive one. B. lower price than the perfectly competitive one. C. lower quantity than the perfectly competitive one. D. higher quantity than the perfectly competitive one.
Demand can be said to be inelastic when:
A. an increase in price results in a reduction in total revenue. B. the elasticity coefficient exceeds one. C. a reduction in price results in a decrease in total revenue. D. a reduction in price results in an increase in total revenue.