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.