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Figure 9.2 shows the cost structure of a firm in a perfectly competitive market. If the market price is $10 and the firm chooses the profit maximizing output level, its profit is:

▸ $1,000.

▸ $800.

▸ $720.

▸ $200.

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Figure 9.2 shows the cost structure of a firm in a perfectly competitive market. Suppose the current market price is $10 and the firm produces the profit maximizing output level. If the firm's total fixed cost increases due to a new government regulation, the short-run response of the firm should be to:
Note: since the question does not restrict the firm's response to the short run, we can't rule out that the rise in fixed cost will push the firm below the breakeven point and that the firm will exit the industry in the long run, thus decreasing its current output level.

▸ decrease its current output level.

▸ increase its current output level.

▸ produce its current output level.

▸ There isn't sufficient information.

produce its current output level.

Figure 9.2 shows the cost structure of a firm in a perfectly competitive market. Suppose that market price falls to $6. If the firm produces at an output level that causes it to suffer an economic loss of $120, its average total cost (X) is:

▸ $8.

▸ $7.5.

▸ $6.5.

▸ $4.

$7.5.

Exactly what I needed for my project, TYSM