If a Firm Enjoys Producer Surplus in Perfectly Competitive Market

question 32

Multiple Choice

If a firm enjoys producer surplus in perfectly competitive Market A of $1000 and would enjoy producer surplus in perfectly competitive Market B of $1200,the firm would consider moving to Market B if

• A) fixed costs are greater than $100 in Market A.
• B) fixed costs are less than $200 in Market B.
• C) fixed costs are less than $300 but greater than $200 in Market B.
• D) fixed costs in Market B are less than the fixed costs in Market A plus $200.

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