Franklin is a fiddlehead farmer. He sold 10 bags of fiddleheads last month; his total unavoidable fixed cost FC was $100 and total variable cost VC $80. Given the competitive market price P = $15 per bag, Franklin A. Made the right decision by staying in business last month. B. Made a wrong decision last month as it suffered a loss of $30. C. Was in the long run competitive equilibrium last month. D. Faced more competition in the market due to the entry of new firms in the

Franklin is a fiddlehead farmer. He sold 10 bags of fiddleheads last month; his total unavoidable fixed cost FC was $100 and total variable cost VC $80. Given the competitive market price P = $15 per bag, Franklin A. Made the right decision by staying in business last month. B. Made a wrong decision last month as it suffered a loss of $30. C. Was in the long run competitive equilibrium last month. D. Faced more competition in the market due to the entry of new firms in the

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 9SCQ: Productive efficiency and allocative efficiency are two concepts achieved in the long mm in a...

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