Consider a Firm Operating Where P = 10,MR = 10,MC

question 13

Multiple Choice

Consider a firm operating where P = 10,MR = 10,MC = 10 and ATC = 10.This firm is:

• A)making an economic profit of 10.
• B)an example of monopolistic competition.
• C)going to go out of business in the long run.
• D)a monopolist for a product with a relatively inelastic demand.
• E)perfectly competitive in long-run equilibrium.

---

Definitions:

Incorporated

The process by which a business becomes a legally recognized entity, separate from its owners, with its own rights and liabilities.

Articles of Organization

Legal documents filed with the state that formally establish the creation of a limited liability company (LLC).

Limited Liability Company

An organizational model that merges the direct tax benefits of a partnership or single ownership with the reduced legal responsibility of a corporation.

Foreign Corporation

A corporation created by or organized under the laws of a state other than the one in which it is operating.