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:

Marginal revenue is ?

A. the additional profit the firms earns when it sells an additional unit of output B. the difference between total revenue and total cost C. The ratio of total revenue to quantity. D. the added revenue that a firm takes in when it increases output by one additional unit....

Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?

A. decrease; decrease B. increase; decrease C. decrease; increase D. increase; increase...

A group of firms that gets together to make price and output decisions is called ?

A. a concentrated industry. B. a cartel C. price leadership D. an oligopoly....

The slope of marginal revenue curve is ?

A. always equal to one. B. half as steep as the demand curve C. the same as the slope of the demand curve D. twice as steep as the demand curve...

In contestable markets large oligopolistic firms end up behaving like ?

A. monopolistically competitive firms B. a cartel C. perfectly competitive firms D. a monopoly....