Rick is an oyster farmer and the world oyster market is perfectly competitive. T

Question

Rick is an oyster farmer and the world oyster market is perfectly competitive. The market price is $17 a crate. Rick sells 700 crates a week and his marginal cost is $19 a crate. Rick is O A. O B. O C. 0 D. O E. not maximizing profit because marginal cost is greater than marginal revenue not maximizing profit because the world oyster market is perfectly competitive not maximizing profit because there is too much competition in the oyster market maximizing profit if he is selling the maximum amount of oysters he can produce maximizing profit because marginal cost is greater than marginal revenue

Explanation / Answer

SInce P = 17 and MC = 19

Profit = 17*700 - 19*700

=-1400

Hence, Rick is not maximising profit because MC>MR

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