Assume that the equilibrium price in a perfectly competitive industry is $4.25 . If a firm in this industry produced and sold 10 units with an average total cost of $5.00, what would be the result would be:
a. a profit of $0.75
b. a profit of $7.50
c. a loss of $0.75
d. a loss of $7.50
d
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Refer to the Article Summary. The article discusses the rising administrative costs of health care
Even if private insurance companies were more efficient and brought administrative costs down, consumers would still pay less than the full cost of medical treatment. This would result in the market equilibrium price of medical services being ________ than the efficient equilibrium price, and the market equilibrium quantity of medical services being ________ than the efficient equilibrium quantity. A) less; less B) greater; less C) less; greater D) greater; greater
The production side efficiency loss of a tariff is caused by
A) confusion about prices when a tariff is imposed. B) higher profits gained by foreign producers. C) the expansion of relative inefficient domestic production. D) the contraction of domestic consumption. E) the increase in government revenue.
If a firm manager has a base salary of $50,000 and also gets 2 percent of all profits, how much will his/her income be if revenues are $8,000,000 and profits are $2,000,000?
A. $90,000 B. $210,000 C. $250,000 D. $150,000