Figure 7.4 -Suppose That Figure 7.4 Shows an Industryʹs Market Demand, Its

question 12

Multiple Choice

Figure 7.4
-Suppose that Figure 7.4 shows an industryʹs market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, a representative firmʹs profit would be:

• A)$1,250.
• B)$450.
• C)$250.
• D)There is not sufficient information.

---

Definitions:

Pro Rata

In proportion; according to the calculated share or division.

Apparent Authority

A situation in which a reasonable person would understand that an agent had authority to act, even if the agent did not have actual authority.

Winding-up Partners

The process of closing down a partnership, involving settling its debts and distributing any remaining assets among the partners.

Partnership Agreement

A legal document outlining the terms and conditions under which a partnership operates.