The Perfectly Competitive Widget Industry Is in Long-Run Equilibrium

question 91

Multiple Choice

The perfectly competitive widget industry is in long-run equilibrium.A profit-maximizing manufacturer receives total revenue of $55,000.He uses his labor, $15,000 worth of wire, and $15,000 worth of steel to make the widgets.The manufacturer

• A)is earning an economic profit of $25,000.
• B)must have an opportunity cost of labor of less than $25,000.
• C)must have an opportunity cost of labor of exactly $25,000.
• D)must have an opportunity cost of labor of more than $25,000.

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Definitions:

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The process through which individuals learn and adopt the norms, values, and behaviors appropriate to their society or social group.

Cultural Capital

The non-financial social assets that promote social mobility, including education, intellect, style of speech, dress, or physical appearance.