Consider the Price and Quantity Data Below for a Perfectly

question 89

Multiple Choice

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps. $$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Price } ( \$ ) & \text { Quantity } \\\hline 5 & 1000 \\\hline 5 & 1250 \\\hline 5 & 1500 \\\hline 5 & 1750 \\\hline 5 & 2000 \\\hline\end{array}\\\text { TABLE 9-1 }\end{array}$$
-Refer to Table 9- 1. Suppose this firm is producing 1250 mousetraps and its average total cost is $4 per unit. The firm will be

• A) suffering losses of $5000.
• B) earning profits of $1250.
• C) earning profits of $5000.
• D) suffering losses of $1250.
• E) breaking even.

---

Definitions:

False Memory

A psychological phenomenon where a person recalls something that did not actually happen or recalls it differently from the way it actually happened.

Elizabeth Loftus

A cognitive psychologist known for her extensive research on the malleability of human memory and the misinformation effect.

Lost At The Mall

A technique used in psychological experiments to implant false memories by suggesting to participants they got lost in a mall as a child.

Sketchy Memories

Memories that are vague, incomplete, or imprecise, often causing uncertainty or suspicion.