If at Optimum Output of 1,000 Units, the Firm Is

question 117

Multiple Choice

If at optimum output of 1,000 units, the firm is incurring average variable cost per unit of $3, average fixed cost per unit of $1.50, and selling its output at $7 per unit, total profit is

• A)$7,000.
• B)$2,500.
• C)$1,500.
• D)$250.

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Definitions:

Labor Market

The marketplace in which individuals offer their labor for employment and employers seek to hire labor to fill available positions.

Resource Market

The market where resources or inputs such as labor, capital, and raw materials are bought and sold.

Rational Decision Maker

An individual or entity that makes choices that maximize benefits while minimizing costs, based on available information and logical analysis.

Shipping Fee

A charge applied for the transportation of goods from one location to another by sea, air, or land logistics.