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

question 548

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 = 999, the firm's profits equal

• A)$4,990.
• B)$5,000.
• C)$5,020.
• D)$5,030.

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Definitions:

Decrease Rate

A term that may refer to the rate at which a value is reducing over a period of time.

Compounded Quarterly

The calculation of interest on both the original principal and previously earned interest every three months.

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A single payment made at one time, in contrast to smaller, periodic payments.

Lump Sum Payment

A one-time payment made specifically rather than multiple smaller payments over time.