A Firm Is Producing 2,500 Units at Its Optimal Output

question 166

Multiple Choice

A firm is producing 2,500 units at its optimal output, with average variable cost per unit of $4 and average fixed cost per unit of $2.50.If sells its output at $8 per unit, total profit is

• A)$10,000.
• B)$3,750.
• C)$1,500.
• D)$20,000

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Definitions:

Bass's Transactional Leadership

A leadership style identified by Bernard Bass that focuses on the exchange between leaders and followers, where leaders offer rewards for the followers' performance.

Transcend Self-Interest

The act of prioritizing the needs, goals, or well-being of others or the collective over personal gain.

Organization

An entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.

Charisma

A personal quality that gives an individual influence or authority over large numbers of people.