A Firm Produces 10 Widgets That They Sell for $15

question 13

Multiple Choice

A firm produces 10 widgets that they sell for $15 each.The average variable cost for the production of 10 widgets is $13/unit.The fixed cost for this firm equals $20.What is the value of this firm's profits?

• A)- $20
• B)- $2
• C)0
• D)$20

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Definitions:

Permissive

A parenting style characterized by low demands with high responsiveness, where parents are very lenient and mostly allow their children to do what they want.

Authoritarian

relating to a system of government or leadership style characterized by concentrated power in the hands of a leader or a small elite not constitutionally responsible to the people.

Total Isolation

A condition or situation in which an individual is completely separated from others, leading to various psychological and physiological effects.

Fearful

Fearful denotes a feeling of anxiety or apprehension caused by the presence or anticipation of danger.