Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If this firm is producing the profit-maximizing level of output and selling it at the profit-maximizing price, the firm's profit is

A) -$250.
B) -$150.
C) -$100.
D) -$50.

Question

Jenette Gampfer · Accepted Answer

Final Answer : C, Explanation :  The firm's profit is calculated as total revenue minus total costs. Given fixed costs of $150, if the firm is producing at the profit-maximizing level, its total costs would be higher than its total revenue by $100, resulting in a loss of $100.

Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If this firm is producing the profit-maximizing level of output and selling it at the profit-maximizing price, the firm's profit is

A) -$250.
B) -$150.
C) -$100.
D) -$50.

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Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If this firm is producing the profit-maximizing level of output and selling it at the profit-maximizing price, the firm's profit isA) -$250.B) -$150.C) -$100.D) -$50.

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Learning Objectives

Learning Objectives

Related questions

Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. If this firm is producing the profit-maximizing level of output and selling it at the profit-maximizing price, the firm's profit is

A) -$250.
B) -$150.
C) -$100.
D) -$50.