At its present rate of output, 200 units, a perfectly competitive ...

[jparksx]

At its present rate of output, 200 units, a perfectly competitive firm has total cost of 10,000 . marginal cost of 38, and fixed cost of 2,000 . and it charges the market price of 38 per unit. To maximize profit or minimize loss, this firm should
 a. increase output
  b. reduce output but not to zero
  c. maintain the present rate of output
  d. shut down
  e. raise the price

Question 2

Assuming a constant cost industry, consumer surplus would be greater under monopoly than if the industry were perfectly competitive.
 a. True
  b. False

[elyse44]

Answer to Question 1

D

Answer to Question 2

B

[jparksx]

TYSM

[shailee]

Excellent