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
Chapter8: Monopoly
Section: Chapter Questions
Problem 12SQP
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Question
A firm in a
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
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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