Choose the correct answer for each question. 58. How can a firm under pure competitionmaximize its profit or minimize itsloss?compare total revenue and totalcostcompare marginal revenue andmarginal costadjust its outputadjust its target normal profit 38. Graphically, where is average fixed cost(AFC)?It is below price but aboveaverage variable cost (AVC)It is below average total cost andmarginal costIt is between the ATC and AVCcurvesIt is between price and AVCcurves41. Graphically, which is the maximumprofit of a purely competitive firm?the distance where TC is higherthan TRthe distance where TR is higherthan TCthe highest positive distancebetween TR and TC.the highest negative distancebetween TR and TC

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58. How can a firm under pure competition maximize its profit or minimize its loss? compare total revenue and total cost compare marginal revenue and marginal cost adjust its output O adjust its target normal profit

58. How can a firm under pure competition maximize its profit or minimize its loss? compare total revenue and total cost compare marginal revenue and marginal cost adjust its output O adjust its target normal profit

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 4SQP

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Question

Choose the correct answer for each question.

58. How can a firm under pure competition
maximize its profit or minimize its
loss?
compare total revenue and total
cost
compare marginal revenue and
marginal cost
adjust its output
adjust its target normal profit

38. Graphically, where is average fixed cost
(AFC)?
It is below price but above
average variable cost (AVC)
It is below average total cost and
marginal cost
It is between the ATC and AVC
curves
It is between price and AVC
curves
41. Graphically, which is the maximum
profit of a purely competitive firm?
the distance where TC is higher
than TR
the distance where TR is higher
than TC
the highest positive distance
between TR and TC.
the highest negative distance
between TR and TC

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