-Computer Memory Chips Are Produced on Wafers,each Wafer Having Many

question 163

Multiple Choice

-Computer memory chips are produced on wafers,each wafer having many separate chips that are separated and sold.The above table shows costs for a perfectly competitive producer of computer memory chips.If the market price of a wafer is $2,400 dollars,the firm is

• A) making zero economic profit.
• B) making an economic profit of $12,000 an hour.
• C) incurring an economic loss of $2,800 an hour.
• D) incurring an economic loss of $2,000 an hour.
• E) making an economic profit of $2,400 an hour.

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Definitions:

LLC

Limited Liability Company, a flexible form of enterprise that blends elements of partnership and corporate structures, providing limited liability to its owners.

Business Tax Return

The documentation filed to report a business's income, expenses, and other tax information to government tax authorities.

Form 1040 Schedule C

A tax form used by sole proprietors to report business income and expenses to the IRS.

Form 1120

A tax form used by corporations in the United States to report their income, gains, losses, deductions, and credits to the Internal Revenue Service.