Author Question: At its shutdown point, a perfectly competitive firm earns total revenue that A) exceeds its total ... (Read 152 times)

Mr3Hunna · **on:** Jun 29, 2018

At its shutdown point, a perfectly competitive firm earns total revenue that

A) exceeds its total cost.
B) generates a normal profit.
C) just equals its total variable cost.
D) exceeds its total variable cost.

Question 2

Using the above figure, which of the following quantities of CDs has the largest deadweight loss?

A) 3 million CDs
B) 4 million CDs
C) 7 million CDs
D) The deadweight losses associated with the three quantities given above are all equal.