Author Question: In the above figure, at a price of 8, a perfectly competitive firm produces ________ and it ... (Read 161 times)

pepyto · **on:** Jun 29, 2018

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