Consider the Price and Quantity Data Below for a Perfectly

question 83

Multiple Choice

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
TABLE 9-1
-Refer to Table 9-1.Suppose this firm is producing 2000 mousetraps and average variable cost is $5.50.What level of economic profit is this firm earning?

• A)$1000
• B)-$1000
• C)$0
• D)$0.50
• E)There is insufficient information to answer to know.

---

Definitions:

Electrons

Negatively charged particles located within every atom that are essential for chemical reactions and the production of electricity.

O

O, also known as Oxygen, is a chemical element with symbol O and atomic number 8, essential for respiration in many living organisms.

S

Sulfur, a yellow, odorless, brittle nonmetallic element used in making sulfuric acid, matches, and fertilizers.

Lewis Dot Structures

Diagrams that show the bonding between atoms of a molecule and the lone pairs of electrons that may exist.