The Perfectly Competitive Widget Industry Is in Long-Run Equilibrium

question 91

Multiple Choice

The perfectly competitive widget industry is in long-run equilibrium.A profit-maximizing manufacturer receives total revenue of $55,000.He uses his labor, $15,000 worth of wire, and $15,000 worth of steel to make the widgets.The manufacturer

• A)is earning an economic profit of $25,000.
• B)must have an opportunity cost of labor of less than $25,000.
• C)must have an opportunity cost of labor of exactly $25,000.
• D)must have an opportunity cost of labor of more than $25,000.

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Definitions:

Communal Goals

Objectives or aims shared by a community or group that typically focus on mutual benefits and support among members.

Empathy

The ability to understand and share the feelings of another individual, fostering a sense of compassion and connection.

Narcissistic

Describes a personality trait characterized by excessive self-love, a need for admiration, and a lack of empathy for others.

Psychopathic

Pertaining to psychopathy, a personality disorder characterized by persistent antisocial behavior, impaired empathy and remorse, and bold, disinhibited, and egotistical traits.