A Perfectly Competitive Firm Is Producing 50 Units of Output

question 196

Multiple Choice

A perfectly competitive firm is producing 50 units of output and selling at the market price of $23.The firm's average total cost is $20.What is the firm's economic profit?

• A) $23
• B) $150
• C) $1,000
• D) $1,150
• E) $50

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Definitions:

Customer Specifications

Detailed requirements and criteria provided by a customer regarding the desired features and standards of a product or service.

Variety of Products

An assortment or range of different items or merchandise that a company offers to meet diverse customer needs and preferences.

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on managing processes that transform inputs into outputs.

Executive Compensation

The total of all benefits, perks, and salary provided to top-level management and company executives, reflecting their role and responsibilities.