A Picture Frame Company Operates in a Competitive Price-Searcher Market

question 182

Multiple Choice

A picture frame company operates in a competitive price-searcher market. Its short-run equilibrium price is $80 and its ATC is $65. It sells 100 picture frames a week. From this we can conclude

• A) this firm is making a normal profit.
• B) other picture frame companies will want to exit the market.
• C) there are no other picture frame companies in the area.
• D) economic profits are $1,500.
• E) total profits are being maximized.

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Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to counteract the effects of the Great Depression.

Agricultural Policies

Strategies and regulations implemented by governments to influence their agricultural sector's economic activities, including subsidies, tariffs, and farming guidelines.

Landless Farmworkers

Agricultural laborers who do not own the land on which they work, often living in conditions of poverty and dependency.

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Individuals or entities that hold legal title to a piece of land, granting them rights to its use, benefits, and disposal.