Juan's Software Service Company Is in a Perfectly Competitive Market

question 261

Multiple Choice

Juan's Software Service Company is in a perfectly competitive market.Juan has total fixed cost of $25,000,average variable cost for 1,000 service calls is $45,and marginal revenue is $75.Juan's makes 1,000 service calls a month.What is his economic profit?

• A) $5,000
• B) $25,000
• C) $45,000
• D) $75,000
• E) $50,000

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Definitions:

Perception

Subjective interpretation of sensations by the brain.

Inferior Olive

A structure in the brainstem involved in motor coordination and learning by sending signals to the cerebellum.

Cerebellum

A major structure of the hindbrain that plays an essential role in motor control, coordination, precision, and timing of movements.

Motor System

The component of the central and peripheral nervous system that is involved in the movement and coordination of the muscles.