Suppose a monopolistic competitor produces 1,250 units of a good in equilibrium and charges a price of $7.50 for each unit. If the average total cost of producing 1,250 units of the good is $8, what is the total loss incurred by the producer?
A) $0.50
B) $500
C) $625
D) $1.50
C
Economics
You might also like to view...
Which of the following is NOT an example of common property?
A) a trampoline B) air C) gravity D) sunshine
Economics
What concept does the following formula express?
a. autonomous change in consumption spending
b. marginal propensity to consume
c. marginal propensity to save
d. equilibrium in the aggregate expenditure model
Economics