Answer the Question on the Basis of the Following Information

question 69

Multiple Choice

Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and $3, respectively. If the price of product A is $0.50, the firm will realize

• A) an economic profit of $4.
• B) an economic profit of $2.
• C) an economic profit of $6.
• D) a loss of $3.

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Definitions:

Phenomenon

Phenomenon refers to an observable event, fact, or circumstance that can be scientifically investigated to gain understanding or evidence about it, often used to describe unusual or remarkable occurrences.

Social Support Theory

A theory that suggests support from social networks has positive effects on an individual's health and well-being.

Instrumental Support

Refers to the provision of tangible aid and services that directly assist a person in need.

Innovation

The introduction of new ideas, devices, or methods, often leading to improvements in processes, products, or technology.