The figure above shows cost curves for a perfectly competitive firm.If market price is $0.70,a profit-maximizing firm will produce _____ units of output and earn profits of _____.
The figure above shows cost curves for a perfectly competitive firm.A profit-maximizing firm will break even when market price is:
In a competitive industry the market-determined price is $12.A firm is currently producing 50 units of output; average total cost is $10,marginal cost is $15,and average variable cost is $7.In order to maximize profit,the firm should:
A)produce more because the firm is earning a profit of $100.
B)keep output the same because the firm is earning a profit of $100.
C)produce more because the next unit of output increases profit by $2.
D)produce less because the last unit of output decreased profit by $3.
Consider the short-run supply curve for a perfectly competitive industry.In general,which of the following statements are true?
A)The short-run industry supply is obtained by horizontally summing the supply curves of all the individual firms in the industry.
B)The industry supply curve tends to be flatter (more elastic)than the horizontal sum of all the industrial firms' supply curves.
C)Short-run supply for a perfectly competitive industry is flat for constant cost industries.
D)both a and b
E)a,b and c are true in general