question 7 urgent C. upsloping and equal to the portion of the marginal cost cur

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question 7 urgent

C. upsloping and equal to the portion of the marginal cost curve that lies above the avera D. upsloping only when the industry has constant costs. 5. Suppose you find that the price of your product is less than minimum AVC. You should: A. minimize your losses by producing where P = MC. maximize your profits by producing where P MC. C close down because, by producing, your losses will exceed your total fixed costs close down because total revenue exceeds total variable cost A firm finds that at its MR = MC output, its TC = $1,000, TVC = $800, TFC-3200, and $900. This firm should: 6. shut down in the short run. produce because the resulting loss is less than its TFC. C. produce because it will realize an economic profit. D. liquidate its assets and go out of business. In a purely competitive industry A. there will be no economic profits in either the short run or the long run. B. economic profits may persist in the long run if consumer demand is strong and stable. C. there may be economic profits in the short run, but not in the long run. D. there may be economic profits in the long run, but not in the short run Suppose that the MR = MC condition cannot be completely met for a firm because there is at which MR and MC are equal. In that case the firm should A. produce up to and including the last unit for which MR exceeds MC. B. produce up to and including the last unit for which MC exceeds MR C shut down.

Explanation / Answer

Q7
Answer
Option C
the perfect competetive firm may earn profit loss or breakeven in short run but in long run becuase of free entry and exits make the profit zero

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