A Firm Is Producing 100 Units, Which Is Its Profit-

question 18

Multiple Choice

A firm is producing 100 units, which is its profit- maximising quantity. The price is $1, the total fixed costs are $40 and the average variable cost for each unit is $1.20. The firm's opportunity costs of being in business are included in both the fixed and variable costs. The firm's economic profit is:

• A) $180
• B) $0
• C) - $60
• D) $140

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Definitions:

Marketing Manager's Controllable Factors

Elements such as product, price, place, and promotion that marketing managers can directly manipulate to achieve marketing objectives.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically including product, price, place, and promotion.

Marketing Problem

A challenge that businesses face when trying to effectively market their products or services to the right audience.

Stakeholder Rewards

Benefits, monetary or otherwise, given to stakeholders of an organization, including employees, customers, and investors, as recognition for their contribution.