In the above figure, at a price of 8, a perfectly competitive ...

[pepyto]

In the above figure, at a price of 8, a perfectly competitive firm produces ________ and it ________.
 
  A) 0; incurs an economic loss
  B) 0; makes zero economic profit
  C) some output; makes zero economic profit
  D) some output; makes an economic profit

Question 2

Using the above figure, CBL is the cost of breaking the law. What is the equilibrium price and quantity if beer is legal?
 
  A) 5 per quart and 300 quarts of beer
  B) 3 per quart and 500 quarts of beer
  C) 3 per quart and 100 quarts of beer
  D) 1 per quart and 300 quarts of beer

[fur]

Answer to Question 1

C

Answer to Question 2

B

[pepyto]

TYSM

[T4T]

Excellent