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

---

Definitions:

Indigenous Peoples

Ethnic groups considered to be the original inhabitants of a particular region, having distinct cultural, social, and political structures.

Federal Government

The national government of a federated state which has specific powers enumerated by a constitution, distinguishing it from regional or local governments.

Law of Partnership

The branch of law dealing with the formation, operation, and dissolution of partnerships.

Joint Business Activities

Collaborative enterprises undertaken by two or more partners to achieve specific commercial objectives.