Author Question: In the above figure, at a price of 4 per unit, a profit-maximizing perfectly competitive firm will ... (Read 54 times)

Yi-Chen · **on:** Jun 29, 2018

In the above figure, at a price of 4 per unit, a profit-maximizing perfectly competitive firm will

A) shut down because its total revenue is less than its variable costs.
B) incur an economic loss.
C) produce 5 units.
D) Both answers A and B are correct.

Question 2

Lizzie's budget line is shown in the figure above. Lizzie's real income in terms of magazines is ________ magazines

A) 5
B) 10
C) 15
D) 20