CCE Specialties | Two .. , & Staff* Policies & Resources Help- Marcus Shepherd 1

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CCE Specialties | Two .. , & Staff* Policies & Resources Help- Marcus Shepherd 15-01) Principles of Economics 15-01) Principles of Economics Micro 2 Perfect Competition (Ch 8) Quiz 4 Question Not yet answered Marked out of 1.00 P Flag question Competitive firms maximize profits by choosing Select one O a. a price where marginal cost is equal to average total cost O b. to produce the quantity at which average fixed cost is minimized O c. the quantity where price equals the marginal cost of production O d. to minimize its variable cost Next page Costs of production (Ch 7) Quiz3 Jump to... Problem set 2 You are logged in as Marcus Shepherd (Loa out)

Explanation / Answer

Ans

1 C. Here p=mc=MR

2 B is right. They earn only zero economic profit in long(which means there is still economic profit)

3 Total revenue and total cost since profit=Revenue-cost

4 c is right

5 raise output since until price =marginal cost each additional unit of output will bring more profit

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