Consider the Following Total Cost Schedule for a Perfectly Competitive

question 75

Multiple Choice

Consider the following total cost schedule for a perfectly competitive firm producing ball- point pens. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Output } \\\text { per period }\end{array} & \text { TVC } ( \$ ) & \text { TFC } ( \$ ) \\\hline 0 & 0 & 5 \\\hline 10 & 2 & 5 \\\hline 20 & 3 & 5 \\\hline 30 & 6 & 5 \\\hline 40 & 10 & 5 \\\hline 50 & 15 & 5 \\\hline\end{array}\\\text { TABLE 9- } 3\end{array}$$
-Refer to Table 9- 3. Suppose the prevailing market price for this firm's product is $0.45. If the firm is producing 20 units of output per period, then its profit per unit is and its total profit per period is .

• A) $6; $120
• B) $0.40; $8
• C) $9; $180
• D) $0.01; $2
• E) $0.05; $1.00

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Definitions:

Consumerism

The tendency to define ourselves in terms of the goods we purchase.

Rationalization

The process of replacing traditional and emotional thought with reason and practicality, often in the context of industry and bureaucracy.

Culture

The shared beliefs, customs, practices, and social behavior of a particular nation or people.

Evolutionary Psychology

A theoretical approach in psychology that attempts to explain useful mental and psychological traits—such as memory, perception, or language—as adaptations, i.e., as the functional products of natural selection.