-Fast Copy Is a Perfectly Competitive Firm

question 271

Multiple Choice

-Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. If the market price is 4 cents per page, what is Fast Copy's economic profit?

• A) zero
• B) between 0 and $0.50 per hour
• C) between $0.51 and $1.00 per hour
• D) more than $1.00 per hour

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Definitions:

Jnd

Stands for Just Noticeable Difference, the minimal change in a stimulus that can just barely be detected by an organism.

Weber Fraction

A concept in psychophysics that describes the proportionate relationship between the magnitude of a physical stimulus and its perceptible increment needed to detect a difference.

Psychological Magnitude

The perceived size, intensity, or importance of a psychological process or stimulus, often related to how individuals assess and experience various psychological phenomena.

Physical Intensity

The magnitude or strength of a physical quantity or phenomena, such as light, sound, or exercise.