If a perfectly competitive firm is making positive economic profits, then? A) It

ID: 1178075 • Letter: I

Question

If a perfectly competitive firm is making positive economic profits, then?

A) It is operating in the short run

B) It is operating in the long run

C) It is producing at its minimum average total cost

D) It is producing at its minimum average variable cost

A monopolistically competitive firm

A) can sell as much output as it wants at the market price

B) must lower price to sell more output

C) sells a fixed amount of output, regardless of price

D) can change output, but cannot change price

Refer to the figure below

If this firm is a monopolitically competitive and is maximizing profit, its total cost is

A) 460

B) 200

C) 400

D) 60

If a perfectly competitive firm is making positive economic profits, then?

A) It is operating in the short run

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A monopolistically competitive firm

B) must lower price to sell more output

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If this firm is a monopolitically competitive and is maximizing profit, its total cost is

C) 400

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