(Solved): A perfectly competitive firm maximizes profit by producing 100 units at an ave total cost of $12 an ...

A perfectly competitive firm maximizes profit by producing 100 units at an ave total cost of $12 and an average fix cost of $5 for a market price of $10. Its shutdown price will be - a. $10 O b. $5 O c. $7 O d. $12 Under perfectly competitive conditions, a firm should continue to produce - O a. Until total revenue is as high as possible O b. Until price is equal to marginal cost Oc Until profits are negative Od. While costs are falling, then stop O Until there is no more revenue A perfectly competitive firm maximizes profit by producing 200 units at an average total cost of $15 and an average fix cost of $5 for a market price of $25. Its total fixed cost will be - O a. $3000 O b. $1000 O c. $1500 O d. $2000 According to this principle, as successive units of a variable factor (say labor) are added to a fixed factor, beyond some point the marginal product attributed to every additional unit of that variable factor will decline. O a. None of the above Ob. Law of diminishing returns O c. Principle of profit maximization O d. Law of variable productivity Oe. Principle of economies of scale