Scenario 14-1 Assume a Certain Firm in a Competitive Market Is Producing

question 109

Multiple Choice

Scenario 14-1
Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.
-Refer to Scenario 14-1. At Q = 1,000, the firm's profits equal

• A)−$200.
• B)$1,000.
• C)$3,000.
• D)$4,000.

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Definitions:

Apples

The edible fruit of the apple tree, widely cultivated in temperate climates.

Pears

A sweet, bulbous fruit with a wide bottom and a tapering top, often green, yellow, or red, cultivated worldwide.

Miles

A unit of distance measurement equal to 5,280 feet or approximately 1.609 kilometers.

Waterfall

A model or process that visually represents the sequential and cumulative effect of a series of transactions or events, often used in project management and finance.