Figure 5.1 Cost and Demand Conditions of a Perfectly Competitive Firm

-Refer to Figure 5.1. The firm will realize economic losses by producing and selling any output
A) less than 30 units or more than 75 units
B) between 30 units and 40 units
C) between 30 units and 60 units
D) between 60 units and 75 units

Question

Figure 5.1 Cost and Demand Conditions of a Perfectly Competitive Firm
 
-Refer to Figure 5.1. The firm will realize economic losses by producing and selling any output
A) less than 30 units or more than 75 units 
B) between 30 units and 40 units 
C) between 30 units and 60 units 
D) between 60 units and 75 units

Quizplus · Accepted Answer

The firm will realize economic losses if it produces and sells any output less than 30 units or more than 75 units because these ranges typically indicate operating below the break-even point or beyond the point where marginal costs exceed marginal revenues, leading to losses.

Figure 51 Cost and Demand Conditions of a Perfectly Competitive Firm