Assume a purely competitive firm is selling 200 units of output at $3 each. At this output, its total fixed cost is $100 and its total variable cost is $350. This firm
A)is maximizing its profit.
B)is making a profit, but not necessarily the maximum profit.
C)is incurring losses.
D)should shut down in the short run.

Question

Quizplus · Accepted Answer

The Answer of Assume a purely competitive firm is selling 200 units of output at $3 each. At this output, its total fixed cost is $100 and its total variable cost is $350. This firm
A)is maximizing its profit.
B)is making a profit, but not necessarily the maximum profit.
C)is incurring losses.
D)should shut down in the short run.

Assume a Purely Competitive Firm Is Selling 200 Units of Output