A Perfectly Competitive Firm Maximizes Profit by Producing 500 Units

question 40

Multiple Choice

A perfectly competitive firm maximizes profit by producing 500 units of output, selling each unit for $10. The firm's average variable cost is $7 and average fixed cost is $2. What is the firm's producer surplus?

• A) $500
• B) $1,500
• C) $1,000
• D) $1

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Definitions:

Adult Weight

The expected or actual weight of an individual upon reaching full physical maturity, often used as a benchmark for assessing health and nutritional status.

Lateralized

Describes functions or processes that are predominantly localized to one side of the brain, such as language in the left hemisphere for most people.

Left Hemisphere

The half of the brain that is typically responsible for language processing, logical reasoning, and analytical tasks in most individuals.

Picky Eaters

Individuals, often children, who have a very selective and limited range of food preferences.