"Consider a perfectly competitive firm in the following position: Output is 4000, market price = $ 1.00, total fixed costs = $2000, total variable costs = $1000 and marginal cost $1.10. This firm is maximizing its profits and should not change its output or price."TRUE or FALSE. Explain with the aid of a graph.
"Consider a perfectly competitive firm in the following position: Output is 4000, market price = $ 1.00, total fixed costs = $2000, total variable costs = $1000 and marginal cost $1.10. This firm is maximizing its profits and should not change its output or price."TRUE or FALSE. Explain with the aid of a graph.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter22: Perfect Competition
Section: Chapter Questions
Problem 12QP
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