Exhibit 7-3 Cost Per Unit Curves

question 16

Multiple Choice

Exhibit 7-3 Cost per unit curves

As shown in Exhibit 7-3, the price at which the firm earns zero economic profit in the short-run is:

• A) $1.00 per unit.
• B) $1.50 per unit.
• C) $2.00 per unit.
• D) $4.00 per unit.

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Definitions:

Outstanding Balance

The total amount of money that is owed and still payable on a loan, credit card, or other financial accounts.

Invoice

A document itemizing and recording a transaction between a seller and a buyer.

Payment

Payment refers to the transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Outstanding Balance

The amount of money that is still owed or due on a financial account or loan.