If a Perfectly Competitive Seller Is Maximising Profit and Is

question 30

Multiple Choice

If a perfectly competitive seller is maximising profit and is making zero economic profit, which of the following will this seller do?

• A) Go to work in the next-best earning opportunity.
• B) Remain open but decrease production in order to make an economic profit.
• C) Shut down, with a loss equal to total fixed cost.
• D) Continue at the current output, making zero economic profit.
• E) Increase production in order to make an economic profit.

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Definitions:

Different Mothers

A phrase that indicates siblings who share one parent in common, typically referring to those who have the same father but different mothers.

Monozygotic Twins

Monozygotic Twins are twins that develop from one zygote that splits and forms two embryos, also known as identical twins, sharing nearly 100% of their genetic material.

Dizygotic Twins

Also known as fraternal twins, are siblings born at the same time as a result of the fertilization of two different eggs by two different sperms.

Genes

Units of heredity made up of DNA that are responsible for the inherited characteristics in living organisms, dictating the development and functioning of organisms.