The Figure Given Below Shows Three Short Run Average Total

question 106

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Suppose that at a given level of output, a perfectly competitive firm charges a price of $12 and has average total costs of $10. If its economic profit is $20,000, then it must be producing:

• A)40,000 units of output.
• B)20,000 units of output.
• C)30,000 units of output.
• D)10,000 units of output.
• E)50,000 units of output.

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Definitions:

Creative Selling

A sales strategy that involves using imaginative ideas and innovative methods to convince potential buyers to purchase a product or service.

Missionary Selling

A sales technique where the salesperson primarily aims to educate the potential buyer about the product rather than directly attempting to sell it, often to establish a long-term relationship.

Integrated Marketing Communications

A strategic, collaborative, and promotional marketing function where a targeted audience receives consistent and cohesive messaging across various marketing channels.

Promotional Messages

Communications designed to inform, persuade, or remind potential buyers about a product or service to influence their purchasing decisions.