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Suppose That There Are 1,000 Firms in a Perfectly Competitive

question 60

Multiple Choice

Suppose that there are 1,000 firms in a perfectly competitive industry, each with a short-run total cost curve given by TC = 800 + 8Q + 0.1Q2 and marginal cost curve given by MC = 8 + 0.2Q. The short-run profit for each firm at a market price of $20 is $____.


Definitions:

Federal Income Tax

A tax levied by the federal government on yearly income earned by individuals, businesses, and other organizations.

Workers' Compensation

An insurance program that provides benefits to employees who suffer job-related injuries or illnesses.

Premium Payment

The periodic amount paid by an insurance policyholder to an insurance company in exchange for the coverage provided by the policy.

Prepaid Workers' Compensation

An asset account that represents payments made in advance for workers' compensation insurance coverages.

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