A perfectly competitive firm produces in a market where the prevailing price is $25 . At its current output level of 10,000 units, its average total cost equals $15 . The firm is earning
a. a total money profit of $100,000
b. a total economic profit of $100,000
c. a total money profit of $250,000
d. a total economic profit of $250,000
e. both a total money profit and a total economic profit of $100,000
B
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A cartel is:
a. a joint venture of two companies. b. a joining of firms for the purpose of fixing prices and controlling output. c. a breaking up of a company into two or more parts. d. the joining of industry with government to solve a specified problem. e. the joining of two firms with unrelated products.
Suppose that Amanda receives a pay increase. We would expect
a. to observe Amanda moving down and to the right along her given demand curve. b. Amanda's demand for inferior goods to decrease. c. Amanda's demand for each of two goods that are complements to increase. d. Amanda's demand for normal goods to decrease.