In the diagram below the perfectly competitive firm sells its product at price p = $5.50. Which of the following responses best describes what area B is measuring? p. $ per ton 6.12 6.00 5.50 5.14 5.00 0 A = $62,000 B = $36,000 50 100 revenue. MC AC AVC р 140 q, Thousand metric tons of lime per year The firm's revenue in excess of its variable cost. All of the options are correct. The maximum amount of fixed costs which the firm can pay before running out of The amount of money which is saved by continuing to operate versus shutting down.

In the diagram below the perfectly competitive firm sells its product at price p = $5.50. Which of the following responses best describes what area B is measuring? p. $ per ton 6.12 6.00 5.50 5.14 5.00 0 A = $62,000 B = $36,000 50 100 revenue. MC AC AVC р 140 q, Thousand metric tons of lime per year The firm's revenue in excess of its variable cost. All of the options are correct. The maximum amount of fixed costs which the firm can pay before running out of The amount of money which is saved by continuing to operate versus shutting down.

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 35CTQ: Why will profits for films in a perfectly competitive industry tend to vanish in the long run?

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