Assume the XYZ Corporation Is Producing 35 Units of Output

question 1

Multiple Choice

Assume the XYZ Corporation is producing 35 units of output. It is selling this output in a purely competitive market at $20 per unit. Its total fixed costs are $150 and its average variable cost is $12 at 35 units of output. This corporation

• A)should close down in the short run.
• B)is maximizing its profits.
• C)is realizing an economic profit of $280.
• D)is realizing an economic Profit of $130.

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Definitions:

Dangerous

Dangerous refers to anything that can potentially cause harm or pose a significant threat to health, safety, or well-being.

Criminal Manner

Actions or behaviors conducted with the intention or in a way that violates criminal law or results in criminal prosecution.

Product Liability Action

Legal action taken against manufacturers, distributors, suppliers, or retailers for damages caused by defective products they sold or distributed.

Damaged After Purchase

Refers to goods or items that become defective or damaged after they have been bought by a consumer.