If a Perfectly Competitive Seller Is Maximizing Profit and Is

question 74

Multiple Choice

If a perfectly competitive seller is maximizing 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) shut down, with a loss equal to total fixed cost
• C) continue at the current output, making zero economic profit
• D) increase production in order to make an economic profit
• E) remain open but decrease production in order to make an economic profit

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Definitions:

Specific Performance

A legal remedy in contracts law requiring a party to perform their part of the contract, as opposed to paying damages for failing to do so.

Delegation

The transfer of a contractual duty.

Plastic Surgeon

A medical specialist focused on reconstructing or repairing parts of the body by moving tissue for cosmetic or functional reasons.

Legally Valid

Having a status that is recognized and enforceable by law or within the legal system.