Evaluate: in the short run , information about a perfectly competitive firm\'s f

Question

Evaluate: in the short run , information about a perfectly competitive firm's fixed costs is needed to determine both the profit- maximize level of output and the amount of profit erand when producing that level of output . Evaluate: in the short run , information about a perfectly competitive firm's fixed costs is needed to determine both the profit- maximize level of output and the amount of profit erand when producing that level of output . An argument for government intervention to subsidize the consumer's cost of obtaining flu shots exists because 5. A. the marginal private benefit exceeds the marginal social benefit of flu shots. B. there is a negative externality in producing flu shots. C. the marginal social benefit exceeds the marginal private benefit of flu shots. D. the marginal social cost of flu shots is zero. When a competitively produced product is subject to negative externalities in production, the industry will A. overproduce the good because marginal social cost will exceed marginal social benefit in competitive equilibrium B. overproduce the good because marginal private cost is less than marginal private benefit in competitive equilibrium. C. underproduce the good because marginal social cost will exceed marginal social benefit in competitive equilibrium. D. underproduce the good because marginal private social cost is less than marginal private benefit in competitive equilibrium in competitive equilibrium. 6.

Explanation / Answer

In the short run, the information of fixed cost is not required to get the profit.

We know for a perfectly competitive firm, price is fixed firm have no role in it the quantity will be where MC and depend curce also does not depend on fixed cost

But to know the amount of profit we need the fixed cost because profit=total revenue-total cost involves fixed cost.

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