Consider the Following Total Cost Schedule for a Perfectly Competitive

question 128

Multiple Choice

Consider the following total cost schedule for a perfectly competitive firm producing ball-point pens.
TABLE 9-3
-Refer to Table 9-3.Suppose the prevailing market price for this firm's product is $0.45.If the firm is producing 20 units of output per period,then its profit per unit is ________ and its total profit per period is ________.

• A)$9; $180
• B)$0.05; $1.00
• C)$6; $120
• D)$0.01; $2
• E)$0.40; $8

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Definitions:

Entrepreneurial Employees

Employees who exhibit entrepreneurial characteristics within an organization, including innovation, risk-taking, and proactiveness, contributing to the company's growth.

Flexible

The ability to easily adapt to new, different, or changing requirements and situations.

Agency Problem

arises in situations where there is a conflict of interest between the principals (owners) and agents (managers) of an organization, leading to potential difficulties in aligning their goals.

Conflict of Interest

A situation where a person's personal interest could potentially interfere with their professional duties or responsibilities, leading to compromised decision-making.