In the Short Run, a Perfectly Competitive fiRm Maximizes Profits

question 6

Multiple Choice

In the short run, a perfectly competitive firm maximizes profits by producing 500 units of output at a price of £10 per unit and an average cost of £8 per unit. What is the total profit earned by the firm?

• A) £400
• B) £2
• C) £1000
• D) £5000

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Definitions:

Positive Exchanges

Interactions that are mutually beneficial and foster positive relations between individuals or groups.

LMX

Leader-Member Exchange, a theory describing the dynamics of relationships between leaders and followers, emphasizing the importance of reciprocal influence and negotiated roles.

Position Power

The power or authority attributed to someone based on their position within an organizational hierarchy.

Leader-member Relations

The dynamics and quality of the interaction between a leader and their followers, affecting group cohesion and performance.