If a Competitive Firm Is Selling 900 Units of Its

question 50

Multiple Choice

If a competitive firm is selling 900 units of its product at a price of $10 per unit and earning a positive profit, then

• A)its total cost is more than $9,000.
• B)its marginal revenue is less than $10.
• C)its average total cost is less than $10.
• D)the firm cannot be a competitive firm because competitive firms cannot earn positive profits.

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Definitions:

Chilling Effect

A situation where speech or conduct is suppressed by fear of penalization at the interests of those who have the power to penalize.

Corporate Campaigns

Strategies employed by unions or activist groups targeting a company’s practices or policies in order to bring about change, often through public, media, and legal pressure.

NLRA

The National Labor Relations Act, a foundational statute in United States labor law that protects the rights of employees to engage in collective bargaining and other union activities.

Corporate Campaign

A strategy used by labor unions to put pressure on a company by mobilizing public, financial, and political support to achieve negotiating aims.