QUESTION 2: Consider the cost curves for a perfectly competitive fim. $9.00 $8.00 $7.00 $6.00 ATC $5.00 $4.00 AVC $3.00 $2.00 $1.00 $0.00 100 200 300 400 500 600 380 480 Quantity A) Refer to the graph above. If market price of product is $7, the firm produces maximize profits. units to a. 380 c. 600 d. 480 b. 500 B) Refer to your answer above. At the profit maximizing output level, the fim makes a total profit (loss) of $ and the firm can expect in the long-run: a. $500; entry b. $480; entry c.$ 800; entry d. $0; no entry no exit Price, Cost
QUESTION 2: Consider the cost curves for a perfectly competitive fim. $9.00 $8.00 $7.00 $6.00 ATC $5.00 $4.00 AVC $3.00 $2.00 $1.00 $0.00 100 200 300 400 500 600 380 480 Quantity A) Refer to the graph above. If market price of product is $7, the firm produces maximize profits. units to a. 380 c. 600 d. 480 b. 500 B) Refer to your answer above. At the profit maximizing output level, the fim makes a total profit (loss) of $ and the firm can expect in the long-run: a. $500; entry b. $480; entry c.$ 800; entry d. $0; no entry no exit Price, Cost
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 40P: Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for 72...
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