A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm's average total cost is $20. What is the firm's economic profit?
A) $23
B) $150
C) $1,000
D) $1,150
E) $50
B
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An increase in aggregate demand results in a(n) ________ in the ________
A) recession; long run B) expansion; long run C) recession; short run D) expansion; short run
Which statement is true?
A. M1 is money, but not M2. B. M2 is money, but not M1. C. Both M1 and M2 are money. D. Neither M1 nor M2 is money.
Which of the following is an example of an identical product?
A. Wheat B. Cars C. Apartment buildings D. Accounting services
Other things being equal, if the average fixed cost curve shifts upward at all output levels:
A. the marginal cost curve shifts upward at all output levels. B. the average variable cost curve shifts upward at all output levels. C. the average total cost curve remains unchanged at all output levels. D. the vertical distance between the average total cost curve and the average variable cost curve increases at all output levels.