A Firm in Perfectly Competitive Industry Is Maximizing Profit at Q

question 63

Multiple Choice

A firm in perfectly competitive industry is maximizing profit at Q = 3, 000.Then its fixed cost increases.The profit-maximizing output is now

• A)greater than 3, 000 and profit decreases
• B)less than 3, 000 and profit decreases
• C)greater than 3, 000 and profit is unchanged
• D)equal to 3, 000 and profit decreases
• E)equal to 3, 000 and profit increases

---

Definitions:

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Specified Period

A set time frame or duration identified for a particular purpose, event, or agreement.

Chief Accounting Manager

A high-level executive responsible for overseeing a company's accounting activities and financial record-keeping.

Controller

A senior financial officer in an organization responsible for overseeing accounting and financial reporting.