The Figure Given Below Shows the Demand and Cost Curves

question 39

Multiple Choice

The figure given below shows the demand and cost curves of a perfectly competitive firm. Figure: 9.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-Refer to Figure 9.4.The total profit or loss for the firm is:

• A)$500 profit.
• B)$2,500 profit.
• C)$2,500 loss.
• D)$650 loss.
• E)$500 loss.

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Definitions:

Profits

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes.

Price-Taking Farmer

A farmer who has no control over the market price and must accept the prevailing market prices for their products.

Corn Output

The overall amount of corn generated during a specific timeframe, commonly quantified in bushels or tons.

Workers

Individuals engaged in any form of employment or labor.