A Price-Taker Firm Is Currently Producing 50 Units of Output

question 130

Multiple Choice

A price-taker firm is currently producing 50 units of output at an average total cost of $3 per unit. If the market price is $7, then the firm's total economic profit is

• A) $4.
• B) $150.
• C) $200.
• D) $350.

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Definitions:

Significant Points

Major or important aspects, factors, or considerations in a given context, such as key arguments in a discussion or essential features of a project.

Market Segments

Subsections of a market composed of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.

Higher Price

Refers to the increased cost of goods or services compared to previous prices or competitors' prices.

Broad Array

a wide and varied selection of items, options, or choices available within a particular category.