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

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