When Acme Dynamite Produces 250 Units of Output, Its Variable

question 36

Multiple Choice

When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. When Acme Dynamite produces 250 units of output, its profit is:

• A)$6,250.
• B)$5,750.
• C)$4,250.
• D)$3,750.

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Definitions:

Downward Trend

A sustained decrease in a particular economic indicator, such as stock prices, GDP, or employment levels, over a period time.

Unemployment Rate

The share of the workforce population that is unemployed and actively searching for job opportunities.

Employed

Refers to individuals who are currently holding a job or position, contributing to the workforce.

Misery Index

An economic indicator calculated by adding the unemployment rate to the inflation rate, aiming to measure economic distress felt by everyday people.