Refer to the graph shown. Assuming that the industry operates under conditions of perfect competition and that the firms seek to maximize profits, this firm will:
A. produce 1,200 square feet of construction in the short run.
B. incur economic losses in the short run.
C. produce 800 square feet of construction per month in the short run.
D. produce 1,000 square feet of construction per month in the short run.
Answer: D
Economics
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Economics
A business incurs the following costs per unit: Labor - $5/unit; Materials $3/unit and rent - $5000/month. If the firm produces 100 . units a month, the total costs equals
a. $5,000 b. $8,000 c. $13,000 d. $3,000
Economics