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A firm in a perfectly competitive industry maximizes profits at Q=100. Its fixed costs increase. Profit maximizing output is now: a.  greater than 100 and profits decrease b.  less than 100 and profits decrease c.  greater than 100 and profits remain unchanged d. equal to 100 and profits decrease e. equal to 100 and profits increase

A firm in a perfectly competitive industry maximizes profits at Q=100. Its fixed costs increase. Profit maximizing output is now: a.  greater than 100 and profits decrease b.  less than 100 and profits decrease c.  greater than 100 and profits remain unchanged d. equal to 100 and profits decrease e. equal to 100 and profits increase

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A firm in a perfectly competitive industry maximizes profits at Q=100. Its fixed costs increase. Profit maximizing output is now:

a.  greater than 100 and profits decrease

b.  less than 100 and profits decrease

c.  greater than 100 and profits remain unchanged

d. equal to 100 and profits decrease

e. equal to 100 and profits increase

 

When the monopoly's total revenue curve touches the vertical axis, total revenue is:

a. increasing

b. decreasing

c. zero

d. positive

e. negative

 

If economic profits exist in a competitive market, new firms will enter to a drive down the price or raise the costs

True

False

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