Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $8 and the firm maximizes profit:
A) the firm will earn economic profits of more than $330 per day.
B) average cost of the product will be at the minimum possible level.
C) output will be 100 units per day.
D) the industry will be in long-run equilibrium.

Question

Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $8 and the firm maximizes profit: 
A) the firm will earn economic profits of more than $330 per day. 
B) average cost of the product will be at the minimum possible level. 
C) output will be 100 units per day. 
D) the industry will be in long-run equilibrium.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $8 and the firm maximizes profit: 
A) the firm will earn economic profits of more than $330 per day. 
B) average cost of the product will be at the minimum possible level. 
C) output will be 100 units per day. 
D) the industry will be in long-run equilibrium.

Refer to the Graph Shown, Which Depicts a Perfectly Competitive