If a Monopolistically Competitive Firm Is Producing 50 Units of Output

question 4

Multiple Choice

If a monopolistically competitive firm is producing 50 units of output where marginal cost equals marginal revenue, total cost is $1,674 and total revenue is $2,000, its average profit is

• A)$326.
• B)$40.
• C)$6.52.
• D)impossible to determine without additional information.

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Definitions:

Marxist Socialists

Ideologists who follow the teachings of Karl Marx, advocating for a society without classes where the means of production are owned collectively.

Reform Socialists

Advocates a peaceful, evolutionary transition of society to socialism through legal and political reforms rather than revolutionary upheaval.

Anarchism

A political philosophy that advocates self-governed societies based on voluntary, cooperative institutions and the rejection of all involuntary, coercive forms of hierarchy.