Mikail's Perfectly Competitive Camera Memory Card-Producing Factory Is Making Positive

question 222

Multiple Choice

Mikail's perfectly competitive camera memory card-producing factory is making positive economic profits.If the price of memory cards is $9,Mikail's output is 3,000 cards a month,and his monthly average total cost is $7,what are his monthly profits?

• A)$6,000
• B)$27,000
• C)$21,000
• D)$2

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Definitions:

Invested Sum

The total amount of money put into a particular investment or project.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in capital budgeting and investment planning.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset for a specific period of time.

Profitability Index

A financial ratio that measures the return on investment for a project by dividing the present value of future cash flows by the initial investment.