Charlie's Chimps is a perfectly competitive firm that produces ...

[WhattoUnderstand]

Charlie's Chimps is a perfectly competitive firm that produces cuddly chimps for children. The market price of a chimp is 10, and Charlie's produces 100 chimps. The marginal cost of the 100th chimp is 9. Charlie's ________.
 
  A) is maximizing its profit
  B) will maximize its profit if it produces more than 100 chimps
  C) will maximize its profit if it lowers the price to 9 a chimp
  D) will maximize its profit if it produces fewer than 100 chimps

Question 2

Which of the following reasons explains why rich countries persistently restrict textile imports from poor countries?
 
  A) The trade restrictions make textile consumers better off.
  B) The trade restrictions make workers in poor countries better off.
  C) The trade restrictions benefit an organized visible special interest in rich countries.
  D) Rich countries have a strong need for the revenue from these trade restrictions.

[akpaschal]

Answer to Question 1

B

Answer to Question 2

C

[WhattoUnderstand]

Thank you

[akpaschal]

Happy to help you