QUESTION 5Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are$100 and its average variable cost is $3 at 20 units of output. This corporationA. should close down in the short runB. is maximizing its profitsC. is realizing a loss of $60D. is realizing an economic profit of $40

A perfectly competitive market structure is one where there are large number of buyers and sellers,…

QUESTION 5 Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are 5100 and its average variable cost is $3 at 20 units of output. This corporation A. should close down in the short run O B. is maximizing its profits OC. is realizing a loss of $60 O D. is realizing an economic profit of $40

QUESTION 5 Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are 5100 and its average variable cost is $3 at 20 units of output. This corporation A. should close down in the short run O B. is maximizing its profits OC. is realizing a loss of $60 O D. is realizing an economic profit of $40

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 2.4P

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