The Following Question Are Based on the Following Diagram Showing

question 55

Multiple Choice

The following question are based on the following diagram showing the short-run cost curves for a perfectly competitive firm:

-If the price is $5 per unit,the profit-maximizing level of output is

• A) zero.
• B) 0Q1.
• C) 0Q2.
• D) 0Q3.
• E) 0Q4.

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Definitions:

FICA Taxes

Taxes imposed on both employees and employers to fund Social Security and Medicare, based on a percentage of the employee's earnings.

Social Security

A government program that provides financial assistance to people with insufficient or no income, including retirees, disabled individuals, and survivors.

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides health insurance for Americans aged 65 and older, and for some younger people with disability.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund the unemployment account of the federal government.