A Firm in a Perfectly Competitive Industry Produces Its Profit-Maximizing

question 227

Multiple Choice

A firm in a perfectly competitive industry produces its profit-maximizing quantity, 40 units. Industry price is $3, total fixed costs are $45, and total variable costs are $60. The firm's economic profit is

• A) $15.
• B) $30.
• C) $35.
• D) $60.

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Definitions:

Precedence Diagram

A graphical representation of the sequence in which tasks must be performed in a project, showing the dependencies between tasks.

Theoretical Minimum

The lowest possible amount of effort or resources required to execute a task or process under ideal conditions.

Work Cells

An arrangement of resources in a manufacturing environment where all necessary equipment and labor are positioned in a compact layout to facilitate efficient production.

Equipment Use

Refers to the deployment and application of tools, machinery, and technology in performing tasks or in the production process.