The Figure Given Below Shows Three Short Run Average Total

question 13

Multiple Choice

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-Assume that a firm's marginal revenue curve intersects the rising portion of the marginal cost curve at 100 units of output. At this output level, a profit-maximizing firm's total cost is $1,000. If the price of the product is $3 per unit and the firm produces at the profit-maximizing level, the firm will earn an economic profit equal to:

• A)-$1,000.
• B)-$700.
• C)-$400.
• D)-$600.
• E)$200.

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Definitions:

Division of Carolina

This refers to the split of the Carolina colony into North and South Carolina in 1712, originally chartered as one territory by the English Crown.

Proprietors

Individuals or entities that own a business or property, characterized by having legal title and the right to use property at their discretion.

John Locke

A 17th-century English philosopher renowned for his theories of natural rights and the social contract.