If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output,which of the following is true? A firm will:
A) plan to exit the industry in the long run if price falls below $15.
B) continue to operate in the short run if price is below $11.
C) make positive profits any time the price is greater than $11.
D) will earn maximum profits at a quantity of 35.
Correct Answer:
Verified
Q102: When economic profits are zero for a
Q103: The number of firms in a perfectly
Q104: When economic profits are zero for a
Q106: We assume that in the long run
Q108: If firms are producing at a profit-maximizing
Q109: In the long run,firms in a perfectly
Q111: We assume that in the short run
Q112: In the long run, firms will enter
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents