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If a Firm in a Perfectly Competitive Market Faces

Question 100
Multiple Choice

img 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 $15. B) if it produces at profit-maximizing level of output it will make positive profits when price is higher than $11. C) should always produce at least 43 units in order to maximize profits. D) will shut down if market price is below $15, but above $11.

Related questions
Q 101
If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output,which of the following is true? A firm will: A) plan to exit the industry in the long run if price falls below $15. B) continue to operate in the short run if price is below $11. C) make positive profits any time the price is greater than $11. D) will earn maximum profits at a quantity of 35.
Q 102
If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output,which of the following is true? A firm will: A) lose money and shut down in the short run if price falls below $15. B) lose money, but continue to operate in the short run if price is at least $15. C) make positive profits any time the price is greater than $15. D) All of these are true.
Q 103
In the short run,we assume that the number of firms in a perfectly competitive market: A) varies if perfect information is present. B) varies more than the long-run equilibrium. C) is fixed. D) is equal to the number of firms in the long-run.
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