Business, 23.11.2021 14:40 niceguy1997
9. Suppose a perfectly competitive firm maximizes profit by selling their product for $20 per unit and producing 200 units
The firm earns positive economic profit of $500 with a fixed cost of $100. Because of a clerical error, the firm's fixed
cost falls from $100 to $50.
(a) What is the firm's variable cost when producing 200 units?
(b) "This firm's profit maximizing quantity will be higher than 200 units if their fixed cost decreases from $100
to $50, ceteris paribus." True/False/Uncertain. EXPLAIN
Answers: 3
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