What is the largest possible loss that is consistent with a firm ...

[c0205847]

What is the largest possible loss that is consistent with a firm producing in a perfectly competitive market in long-run competitive equilibrium?
 a. An amount equal to (price less average variable cost).
  b. An amount equal to total variable.
  c. Zero.
  d. An amount equal to total fixed cost.

Question 2

If a 10 percent price increase causes the quantity demanded for a good to decrease by 10 percent, demand is unitary elastic.
 a. True
  b. False
  Indicate whether the statement is true or false

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Answer to Question 1

c

Answer to Question 2

True