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Discussion
Evaluate the following statement: In the short run, information about a perfectly competitive firm's fixed costs is needed to determine both the profit-maximizing level of output and the amount of profit earned when producing that level of output.
Define short run. Explain in perfect competitive environment Try to use mathematical expressions Fixed cost for perfect competitive firms is straight or goes down(curves in the graph) Does fixed cost effect the profit of the company. And try to give graphical expressions.
Verified Expert
This assignment is based on economics theory of production. The question asked to evaluate the following statement: In the short run, information about perfectly competitive firm’s fixed cost is needed to determine both the profit maximizing level of output and the amount of profit earned when producing that level of output. The given statement is wrong. It is the information about the variable cost to determine both the profit maximizing level of output and the amount of profit earned when producing that level of output
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