If a Monopolistically Competitive Firm Is Producing 50 Units of Output

question 4

Multiple Choice

If a monopolistically competitive firm is producing 50 units of output where marginal cost equals marginal revenue, total cost is $1,674 and total revenue is $2,000, its average profit is

• A)$326.
• B)$40.
• C)$6.52.
• D)impossible to determine without additional information.

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Definitions:

Nurture

In development, nurture includes all environmental influences that occur after conception, from the mother’s nutrition while pregnant to the culture of the nation.

Authoritative

A parenting style characterized by high expectations of maturity and communication from the parent to the child, combined with warmth and support.

Warmth

The quality of being kindly, genial, and showing a sincere interest in the comfort or well-being of others.

Demands

Refers to the requirements or needs that individuals or systems have, which may require fulfillment or response.