The optimum level of output for a perfectly competitive firm is given by the point where
Tap an option to check your answer.
1 mark, −0.33MicroeconomicsPerfect competitionProfit maximisation and the competitive firmModerateabout 1 min
UoH 2012 Question 97: Perfect competition
Answer and worked solution
Checking your account…
Perfect competition has come up 115 times in 7 exams since 2006.
What this question tests
This question is on Profit maximisation and the competitive firm, part of Perfect competition in Microeconomics.
How a price-taking firm picks output where price equals marginal cost, and when it breaks even or shuts down.
TestStop has 31 past-paper questions on this subtopic; the nearest in year are below.
Similar questions from other papers
- The market for torch is perfectly competitive. The market demand function for torch is given by X^d=min (400-p,0), p≥0, where p is the price of a torch. The market…
- Consider the demand and supply functions: D(p)=400-8p and S(p)=2p, where p is the unit price and the choke price is Rupees 50. Identify which of the following…
- Which of the following does not hold at the equilibrium price and quantity in a perfectly competitive market?
- In the context of a perfectly competitive market, identify the statement that is NOT CORRECT.
- Which one of the following is the shut-down condition for a profit maximizing firm in a perfectly competitive market? (P = Price, AVC = Average Variable Cost, ATC =…
Question from the UoH 2012 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.