Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.
Sagot :
The information about the marginal cost, average total cost, and average variable cost at the profit-maximizing point of production when a price ceiling has been imposed will be:
- Not higher than $10.
- Higher than $14.
- Higher than $10.
From the complete question, it should be noted that under perfect competition, in order to maximize profit, the price will be equal to the marginal cost. Based on the information given, the marginal cost won't be more than $10 due to the fact the ceiling price is at this price. Therefore, the marginal cost won't be more than $10.
A firm in perfect competition will earn economic profit in the long run when the profit becomes zero. Therefore, the average total cost must be higher than $14.
Finally, the average variable cost won't be more than $10. This is because the price can't fall below the equilibrium price in order to maximize profit in perfect competition.
Read related link on:
https://brainly.com/question/25328951
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.
