If a Firm Produces and Sells Only One Unit of a Good

question 59

Multiple Choice

If a firm produces and sells only one unit of a good, its profit would be equal to the:

• A) market price of the good.
• B) revenue from the item sold minus the cost of the resources used to produce the good.
• C) difference between the interest paid by the firm on its outstanding loans and the rate of depreciation.
• D) sum of the price of the good and the wages paid to labor.
• E) product of the wages paid to labor and the market price of the good.