Suppose the graphs below (A-D) represent a typical perfectly competitive firm. S

Question

Suppose the graphs below (A-D) represent a typical perfectly competitive firm. State what is wrong with each of the graphs. What is wrong with graph A? You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. The profit-maximizing level of output is not labeled correctly. The MC curve should be downward-sloping. The average total cost curve is mislabeled as the average fixed cost curve The demand curve should be downward-sloping There is nothing wrong with the graph The AFC curve should be flat.

Explanation / Answer

Ans

the profit maximizing level of output is not labeledd correctly.
Profit maximizing quantity is where MC=MR and MC cuts MR from below

The ATC curve is mislabeled as the average fixed cost cost.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.