A perfectly competitive firm, earning economic profits, produces and sells 100 units of output at a price of $20 per unit. If its marginal cost of increasing output to a rate of 101 units is $18, which of the following statements is correct? A B C D The total revenue from selling 101 units is the same as the total revenue from selling 100 units The total profit from selling 101 units is $2 greater than the total profit from selling 100 units. The total cost of producing 101 units is $2 greater than the total cost of producing 100 units. To sell 101 units, the firm must reduce its price below $20. To sell 101 units, the firm must raise its price above $20. X

A perfectly competitive firm, earning economic profits, produces and sells 100 units of output at a price of $20 per unit. If its marginal cost of increasing output to a rate of 101 units is $18, which of the following statements is correct? A B C D The total revenue from selling 101 units is the same as the total revenue from selling 100 units The total profit from selling 101 units is $2 greater than the total profit from selling 100 units. The total cost of producing 101 units is $2 greater than the total cost of producing 100 units. To sell 101 units, the firm must reduce its price below $20. To sell 101 units, the firm must raise its price above $20. X

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 9P

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