The Table Below Shows Cost Data for a Firm That

question 74

Multiple Choice

The table below shows cost data for a firm that is selling in a purely competitive market. Refer to the above table.If the market price for the firm's product is $180,the competitive firm will produce:

• A) 6 units at an economic profit of $100.
• B) 6 units at an economic profit of $120.
• C) 7 units at an economic profit of $238.
• D) 7 units at an economic profit of $278. The firm's profit-maximizing output is 7,where MC = MR.At that output,total revenue is $180 * 7 = $1260 and total cost is $146 * 7 = $1022,so profit is $238.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Ratios

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Answering Machine

A device that automatically answers telephone calls and records messages from callers.