Scenario 14-2 Assume a Certain Firm Is Producing Q = 1,000 Units

question 45

Multiple Choice

Scenario 14-2
Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $20 and its average total cost equals $25. The firm sells its output for $30 per unit.
-Refer to Scenario 14-2. At Q = 1,000, the firm's profits equal

• A)-$5,000.
• B)$2,500.
• C)$5,000.
• D)$10,000.

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Definitions:

Kyphosis

A spinal disorder causing an exaggerated outward curvature of the spine, leading to a hunched-back appearance.

Reducing

The process of decreasing the size, quantity, or extent of something.

Traction

The process of pulling; with fractures, traction is applied in a straight line to stretch the contracted muscles and permit realignment of the bone fragments.

Joint Membranes

Tissue layers surrounding joints, producing fluid that lubricates joint surfaces, facilitating smooth movement.