Assume the XYZ Corporation Is Producing 20 Units of Output

question 101

Multiple Choice

Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation

• A)should close down in the short run.
• B)is maximizing its profits.
• C)is realizing an economic loss of $60.
• D)is realizing an economic Profit of $40.

---

Definitions:

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and relatively smaller scale of operations compared to larger corporations.

State Administrative Regulation

Rules and regulations established by state government agencies to govern specific operational activities.

Federal Administrative Regulation

Rules established by federal agencies that are used to implement federal laws and govern how agencies operate.

Administrative Law Judge

An official who presides over hearings and disputes involving regulations and administrative agencies, making decisions based on the law and facts presented.