A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

Related Mcqs:

The formula for average fixed costs is ?

A. Dq/DTFC B. TFC – q C. TFC/q D. q/TFC...

An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called ?

A. a fixed cost monopoly B. a natural monopoly C. a government franchise monopoly D. a economies of scale monopoly...

Which of the following statements is False ?

A. participants in a contestable market are continuously faced with competition or the threat of competition because entry is cheap B. In a contestable market, economic profits cannot persist in the long run. C. In a contestable market forces will guarantee that the firms produce efficiently or be driven out of business D. For a … Which of the following statements is False ?Read More...

Market power is ?

A. a firm’s ability to monopolies a market completely. B. a firm’s ability to raise price without losing all demand for its product C. a firm’s ability to sell any amount of output it desires at the market-determined price. D. a firm’s ability to charge any price it likes...

A firm in a monopolistically competitive industry ?

A. sells a fixed amount of output regardless of price. B. must raise price to sell more output C. can sell an infinite amount of output at the market-determined price D. must lower price to sell more output....