If the Market Price Is $50 Per Unit for a Good

question 1

Multiple Choice

If the market price is $50 per unit for a good produced in a perfectly competitive market and the firm's average total cost is $52,then the firm

• A) incurs an economic loss of $2 per unit.
• B) makes an economic profit of $2 per unit.
• C) makes zero economic profit.
• D) incurs a total economic loss of $52.
• E) More information is needed to determine the firm's economic profit or loss per unit.

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Definitions:

Positive Message

Communication that conveys good news or a favorable outcome, often intended to motivate or encourage.

Audience Benefit

The advantage or positive outcome that an audience can gain from a message, presentation, or product.

Traditional Press Release

A written or recorded communication directed at members of the news media for the purpose of announcing something ostensibly newsworthy.

Ultimate Audience

The final or intended recipients of a message or piece of communication, often considered in the planning phase.