Exhibit 8-7 -Refer to Exhibit 8-7. If the Market Price Is $90

question 130

Multiple Choice

Exhibit 8-7
-Refer to Exhibit 8-7. If the market price is $90, then the amount of total economic profits for a profit-maximizing, price-taking firm is

• A)$0.
• B)-$1,000.
• C)$1,000.
• D)-$3,000.
• E)$3,000.

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Definitions:

Gravity

The force that attracts two bodies toward each other, giving weight to physical objects and keeping planets in orbit around stars.

Acre

A unit of land area used in the imperial and US customary systems, equivalent to 4,840 square yards or about 4,047 square meters.

Cubic Meter

A unit of volume in the International System of Units, representing the volume of a cube with edges one meter in length.

Liter

A metric unit of volume equal to one cubic decimeter, commonly used to measure liquids and other volumes in the scientific and commercial worlds.