Lisa produces trumpets in a perfectly competitive market. Her only fixed cost is the rent she pays for her factory. Which of the following statements are true: Liz produces lemonade in a perfectly competitive market. Her only fixed cost is the rent she pays for her factory Lisa's average fixed costs will always be constant in this situation. Lisa's average variable cost curve will always be linear in this situation. If quantity produced increases, Lisa's average fixed costs will decrease. To maximise profit, Lisa should look for the point where the marginal cost is equal to the average total cost.

Liz produces lemonade in a perfectly competitive market. Her only fixed cost is the rent she pays for her factory. Which of the following statements are false: Liz's average fixed costs are constant. If the quantity produced increases, Liz's average fixed cost will increase. An increase in marginal cost can only be caused by changes in variable cost. The average total cost curve will intersect the minimum of the average variable cost curve.

In perfect competition, a profit-maximizing business will expand production until its _____ equals the price.Multiple choice question.average costmarginal revenuemarginal cost

Average fixed cost:Group of answer choicesmay be found for any output by adding average variable cost and average total cost.declines so long as output increases.is intersected by marginal cost at its minimum point.graphs as a U-shaped curve.

Clara produces and sells tomatoes in a perfectly competitive market. This implies that Clara’s marginal revenue generated from selling an additional unit of tomatoes is always equal toMultiple Choiceprice.average cost.variable cost.profit per unit.

How does a firm in a perfectly competitive market maximize profit in the short run? By producing where marginal cost equals average total cost By producing where price equals average total cost By producing where marginal cost equals marginal revenue By producing where price equals marginal cost