QUESTION 5 Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are 5100 and its average variable cost is $3 at 20 units of output. This corporation A. should close down in the short run O B. is maximizing its profits OC. is realizing a loss of $60 O D. is realizing an economic profit of $40
QUESTION 5 Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are 5100 and its average variable cost is $3 at 20 units of output. This corporation A. should close down in the short run O B. is maximizing its profits OC. is realizing a loss of $60 O D. is realizing an economic profit of $40
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 2.4P
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